My 3 Biggest Investing Mistakes


Today I am going to be sharing with you my
3 biggest investing mistakes. When I found my system, it was working for
me and then I started deviating. And the more I deviated, the more experience
didn’t work and today, I am going to share with you the top 3 mistakes that I learn from
that I will never deviate away from again. I’ve paid over a million dollars to one of
my mentors and I’ll never forget when we were having moment with each other and I think
I was probably being obnoxious and he gave me this look almost he was like my dad looking
down on me. And he didn’t say a thing. I kind of feel like I was in trouble and when
I finally shut up, I’ll never forget this moment. He turned to me and he said, “Kris, the most
dangerous information to you is what you don’t know.” And it’s all he had to say for me to realize
that I had become married to my opinion and he was trying to get me challenge my opinion. So in this game of real estate, I actually
have discovered like the perfect strategy. But I didn’t know what I didn’t know. I didn’t know was the perfect strategy so
I decided that I would try some different things. And through sorry experience I learned that
some of these things ended up spanking me pretty hard. After I had done about 10 properties, I decided
that I want to try my hand at these ritzy upper end condos that were next to the university. And I had some buddies that lived there. And I was always kind of jealous like, “Man,
you guys get live at Bellmount apartments? They are so nice.” And so, I thought to myself, “Well, shoot. I am an investor now. I never got to stayed there as a college kid. But you know what? I’m going to own those.” And so, one of the first things that I actually
tried my hand at was number 1, college condos. And not just kind of average condos. I was trying to do the higher end condos because
the parent of those kids would actually pay more. But the reality is that there was some vacancies
that I didn’t expect. There were definitely expenses that I didn’t
expect. And by the time I get out of those, I’m just
going to tell you I didn’t make money. I lost money. I bought 4 of them. And so, I had something was working incredibly
well and I made this assumption. If this worked well, this will work well. And it’s as if I actually thought I have must
the Mida’s touch. If I touched it, it’s going to turn to gold. And the reality is those condos didn’t turn
into gold. And when I sold them, I was really happy. Before I move on to number 2, I just want
to share with you actually a big mistake that I made with these condos. Which is I put some of them on a 15-year mortgage. Now, do you know what a 15-year mortgage is? Most people will run their real estate on
the 30-year mortgage. Now even though I am not going to pay off
my house in 30 years, I am going to hold it, I’m going to control it, I’m going to sell
it. The reason why I got in to these condos was
I thought, “Hey, you know what? Let’s get this things paid off.” We’ll do one of them on a 30-year, we’ll do
2 of them on a 15-year. I can’t remember what we did with the fourth
one. But I tell you that when you put something
on a 15-year payment, it’s like, “Hey, I can pay it off in 15 years instead of 30 years.” But you know what? It also drives up that payment high enough
that I was losing money on it. And so sure, I couldn’t had it pay off in
15 years but frankly, it was draining the bank account left and right. And so, one of the things that I learned was
I’m not trying to actually pay off real estate. I am controlling real estate. And so I am going to hold it for 3, 5, 7 years. I’m going to make a the lion share of returns
and I am going to sell it and trade 2 for 4 and 4 for 8. And I’m actually going to let this portfolio
grow. So, part of the mistake was actually coming
out of my system and doing this condos. But part of it was changing my thinking or
experimenting with the idea of in 15 years, this will paid off. And that was burying me alive. The second mistake that I made was… I’ve got a rule. You hear me say it. Probably feels like in every video. Especially if you’re a subscriber and you
watch the videos that come out everyday. I always talk about how important it is to
never go above the median. I want to share with you what that means. The median is like the average home price
that people in an area will pay for real estate. Like, in America, nationwide, our median is
just under $250,000. And it fluctuates. And it’s something that would go up in time. You know and after 2008, it dropped and now
it’s kind of up there again and it’ll drop again and it’s a number that’ll keep on moving. But the reason why I want to be under the
median is because that’s where the most home buyers are. Go to the opposite. Million dollar house. How many people can afford a million dollar
house compared to a $200,000 house? Not very many people. Well, how I learn this was I found a house,
I went over the median, I broke a rule, I was still fresh and new, I didn’t know what
I didn’t know, right? So, I found this house and it had a value
of like $400,000. And I could purchase it for $300,000. And here was my rationale. Do the math. Worth 400 you can but it for 300. Worth 400, you but it 300. You know what that looks like to me? It looks like a hundred thousand dollars of
juicy equity. When I bought that property I’m like, “Dude,
my net worth just I went up a hundred thousand dollars, look at me.” Reality is, is that hundred thousand dollars
of equity, that never materialized. When the market down-turned guess what happened
to all the equity? Poof! The reason why I don’t typically buy homes
over $250,000 and often under 200,000 is because I need to be where the people are. Real estate is actually a business of people. Not property. And some people don’t understand that. Real estate in on of itself is worthless unless
some one is there to occupy it. Someone is there to live on it. Someone is there to transact it. So, if you can learn from one of my big mistakes,
don’t buy things over the median unless you know exactly what you’re doing and you are
experienced and you got mentors backing up what you’re talking about. So the third big mistake that I made was that
I flipped this property. And I made $15,000. And I know what you’re thinking. “Kris, you flipped the property, you made
$15,000. What do you mean that was a mistake?” Well, let me help you understand this. When I got this property I gotten it at such
a discount. I’m like, “Dude, I’m going to turn this puppy
and my partner is going to make 15 grand and I’ll make 15 grand. We’re going to clear 30,000. It’ll be awesome.” And you know, we did all this work on this
deal and the end I got my 15 thousand dollar check and I felt like I had just made such
a dumb mistake. And here’s why. In my strategy that I often talk about. At least for beginners. If you’re new to the game of real estate,
I’ve got advanced strategies. Nationwide strategies. Multifamily strategies. But also people with money. When you’re brand new and just starting the
game, I’m always talking about doing my lease option system. This house would’ve made a sweetheart deal
and when I flipped it, this is so typical. Between me and my partner, we made $30,000. But I am positive if we had just waited 2
to 3 years on my lease option model that we would’ve cleared $90,000. Why? Because when you flip a property, you’re going
to dump way more money in to bring it up to market, to sell it down. You usually got to offer some kind of discount
on it if you wanted to move now. You got to pay all the realtor fees. You know 6% plus a percentage of close and
cost of both sides. And so there was $50,000 i just ate it up
like that because I was interested in having my money today. But the reality is if I held it for 3 years,
it would’ve been a sick cash flow and this 90 is conservative. Probably pulled in over a hundred thousand
dollars. Which is one of the core reasons why I don’t
flip properties. It’s because yeah I get it. If you need money, sure flip a property. But you know, when I do a lease option, I
collect on average of $5,000 upfront. $500 a month of cash flow. And on top that, when I sell it, I am making
tens of thousands of dollars. So I really regret that flip and the couple
of others that I did because when you get to the point where you don’t need the money
or you’re tired of resetting and doing all the work again, you want to have a property
work for you. Then this property could’ve paid out more
than triple the money and then working for me day and night for 3 years before I retire
it. I never got there because I got caught up
in wanting to have that flipping experience when I really didn’t need the money. And guess what I did with the 15 grand? I just put it back at real estate. So it felt like a total opportunity cost waste
for me. So I will tell you this. I mean learning what I’ve learned. About college condos, buying over the median,
flipping properties. For me, all it did was bring me back. I now know what I know. Now what I no longer didn’t know. I am going to tell you right now. I have a system that I do not deviate from. And I basically have 3 systems. Just as little bonus to you, I’ve got something
for people that are starting with no money what so ever. I got a system for people that have some money
and then I have a system for people that have lots of money. And if you’re interested in what it would
look like to avoid you know, all the pitfalls, all the trail and error. Just trying to read a book and figure it out
on your own, I mean no offense to myself. These videos are great but if you’re going
to go out there and do real estate, make sure one way or the other that you are backed by
a mentor. And a mentor that has extensive research experience,
extensive results, extensive you know, amounts of money that they’ve made. And if you don’t have one of those, I might
be your guy. And all you got to do is click the link in
the description below. And what I will do is I will super charge
your growth curve. And I’m just going to carry you, teleport
you to the top of the mountains that you can skip all my lessons that I’ve learned from
my mentors. Skip everything that I’ve learned on doing
now over 3,000 deals. And if you want the ultimate shortcut no matter
your age, your financial situation, remember, I’ve got 3 different ways of playing with
people. So all you got to do is click the link in
the description below and talk to my team and let’s figure out what will work best for
you. Hey, thank you so much for watching today’s
video. If this was useful for you, if you got some
gold nuggets out of this, I’m going to invite you right now to make sure that you are a
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wealth and the life of our dreams.

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