How to Build Wealth with Low Income

October 9, 2019 0 By Kody Olson

How do you build wealth when you’re
already coming from a space of low income or no income? Because that can be
such a stressful place to start from. That how do you actually rise up out of
that? My name is Kris Krohn and this channel is dedicated towards helping you
learn how to build wealth here and then build it in your pocketbooks. And so
today, I want to share with you that whether you’ve got a lot of money or
especially those that are coming from a space of low income, I want to show you
how to slam money in your bank account. So, I grew up in a home where there was a
tremendous amount of pressure to perform well in school and get good grades. And I
remember there was a time when no matter how hard I tried, I couldn’t really get
good grades. And I was always scared to show my dad in my report card because
frankly if I didn’t have straight A’s I knew he was going to be disappointed. And I
was far from straight A’s. All this pressure I think kind of came from
society kind of imposing on my dad and on me this idea that you got to get good
grades, so then you can go to college and then if you get that degree, you know
you’re going to make it. But I think if we look at our world today, dude, here’s the
reality. College is not the path that is working for most people. It’s a fantastic
path for like getting into tons of debt. But it’s not necessarily actually
showing you how to make money. It’s not showing you how to thrive financially.
It’s not really showing you and I had to get where we want to go. This video is
not an anti College video. The society’s game plan is a stressful game plan. Which
basically says do these things. But they don’t even say it’s going to end well.
Because financially it doesn’t end well for most of us. In the video here today
what I want to do, is I want to give you some shortcuts. Because for me, there was
a time when I was just starting college. Financially stressed. I was going deeper
into debt. I was feeling behind the 8-ball. I was newly married and felt all
this pressure from my wife to like get a job and try to avoid debt. And yet
four-and-a-half years later, I was graduating college and I was financially
independent. And I never needed to work a job ever again. And there’s a lot that
happened in that short period of time that I want to break down for you here.
Because I want to show you how you can build wealth when you’re starting with
nothing. Or something you might even be feeling like, “Kris, I’m starting with
with like less than nothing.” And I just want you understand I get it because
that’s exactly where I was at. So, let me kind of break it down for you.
Just a little bit kind of from my past in history is that… You know, my wife and
I, when I was working full time and going to school full time, the whole goal was
to try to get all of our expenses covered. But you know what? When tuition
comes due, man that saps it right out of that Bank account.
So, we were actually going into debt. And we hadn’t got student loans yet. We had
gotten credit cards. So, I was diving thousands and thousands of dollars in a
high interest credit card debt. And my wife was freaking out. That was probably
freaking me out more than I was getting freaked out. When I look at my life at
the 2 biggest expenses that were like weighing on me. The first one was, “Oh, my
gosh. When tuition comes due, that is a huge check.” But the second one was every
single month, just to have roof over my head. I’ve got to actually pay for my
living. And you know, $500 a month when you’re kind of a starving college kid,
that’s a lot of money. So, I get this whole low income game. Because my first
year working I made like $18,000. Like just think about that. I mean $18,000. How
far does that really go? Well not very far. And I plunge deeper and deeper into
debt. Here’s what changed for me though. I had a mentor and this mentor stepped
into my world and he started teaching me about money. Very different than the
lessons I had learned from my childhood about money. Because I had learned that
you have to work hard and that’s the only way. I’ve learned that money is
stressful. I learned all about debt. Because my parents always fought and
argued about debt. Money was something you fought over and money was always
stress. Like those were my biggest take-home messages. But I found my first
mentor and I would do these ride-alongs with him, right? Like he was going out to
work on some deal and I would just find a way to get in his car and just sit
there and just pepper him with question after question after question. And you
know, I’ve so many fun memories of this. But here was the conversation I’ll never
forget. I remember and he pulls me aside and he says, “Kris, I’m going to give you
3 ways of making money right now. Because right now, you’re not in a good
financial situation. And then you can figure out which one would be best for
you.” I said, “Okay. This is exciting.” 3 ways. He said the first one is
you’ve got to find something like a widget. Something that you could sell and
make a buck on. And if you want to make a million dollars. You just have to sell a
million widgets. And I’m like, “Well, I’m pretty confident I can sell something
and make a dollar on it. But the idea of doing that a million times might take me
lifetimes. So, that’s not exciting.” He says, “Exactly.” He says, “Okay, here’s a new one.
number 2. Go sell cars.” I’m like, “Dude, I don’t want to be a used car salesman.” He
says, “Yeah. But let’s say you make a thousand dollars on selling a used car.
How many cars would you need to sell to make a million dollars?” I’m like, “A
thousand. Like…” “Well, selling a thousand of something definitely is not as stressful
as selling a million of something,” He said. But let me share with you where I
always make my most money with my least time regardless of whether I got money
or not. He said, “Real estate.” He said, “We just happen to be actually going
out and checking out on his properties and it says I’m gonna make $100,000 on
this home.” Like dude, $100,000? He said, “Yeah. He explained it, he
broke down the economics which I’ll do for you in just a minute.” But he
basically said, “Kris, a home is the most expensive commodity that everyone in our
country will try to get their hands on.” A car is a commodity that everyone wants
of hands on but you can only make a thousand bucks. A house he could make a
hundred thousand dollars. So, it has a hundred times the leverage. How many
homes would you need to do to make a million bucks? 1, 2, 3, 4, 5, 6, 7, 8, 9 a million. 10. I got 10 fingers I got 10 toes I can count to
10 pretty easy. You probably can too. I hope. So, it was this idea for me that
like, “Wait a second.” And then he put it all together. He said, “Kris, the effort of
selling this. And the effort of selling a car. And the effort of doing a house.” He
said they’re not very different from each other. But when you do 10 times in
one you do 1 million times. So the question is do you want to waste life
times or do you want to actually jump into the making the money right now. I
said, “Wow, I want to jump in I’m making the money right now.” So, here’s what
happened. He got me sold. I sold myself really I think on this idea that real
estate is the biggest commodity… Now, you need to understand something. This
conversation is not about why real estate. This is about you wanting to slam
money in your bank account and you should be looking for the easiest way.
Like remove your prejudices. Like, I would like that, I wouldn’t like that. This
one’s good, that was bad. Listen, just informationally speaking. What we’re
talking about here with real estate not as an agent but as an investor that says,
“I’m going to control this asset and make a hundred
thousand dollars on it. I do that 10 times making million dollars.” You want to
know why in four and a half years, I went from such a lousy place to such a
fantastic place? it was because I bought 25 homes they made me a multimillionaire.
And they brought in $12,000 a month. But who cares about the big number? This is
when it got real for me. That same first mentor, John. I remember when I drove by
my very first house. And it met everything John told me I should look
for and I brought a tim was tiny little bungalow in Provo by Brigham Young
University five blocks away. And I could get this house for $110,000. It was worth $150,000. So, it came with this
equity. John basically reviewed my numbers looked at everything. And a month
later, I ended up buying this house. Barely. Listen guys, I was not in a good
financial situation. What I had done for the last year was save up five grand in
my bank account and it was hard to do because I was so freaking bored. But that
became a tiny down payment on a house that I moved into. And here was the cool
part: The house had a basement apartment. And once I rented it, it covered my
mortgage. So, all of a sudden, that first $500 month expense remember how heavy
that was. It was gone. It was evaporated. And that feeling of just like wait a
second, I got school tuition as long as I’m going to school. But otherwise
biggest expense in my life just evaporated. On one deal. A year later, I
was able to pull money out of that house use it to buy a second house. Now, I was
living for free and now making close to $1,000 a month residual income. And my
wife and I within a matter of months, we got out of all of our credit card debt.
It was all gone It then cascaded into 20 homes, 25 homes.
And then it turned into 50 homes then turned into a hundred homes. So, here’s
the biggest thing that I really want you to understand. And in fact, I want you to
understand this. This I have never released this before to the public for
free. This book it’s called The Straight Path To Real Estate Wealth. It is the
first of all the books that I ever wrote. Moved 50,000 copies of this bad
boy. And I just updated it for today’s economy. And this is a book that actually
documents exactly how I got my first 100 properties. And I’ve decided that I’m
going to kind of break some of my rules. I’m going to be
making this available to you for free. All you got to do is click the link
below in the description. And cover the shipping cost and my team will actually
send this out to you in the mail. And once you have it, you know, this video
short. So, I want you to have all of the steps of exactly how to do it when you
don’t have the money you want. But I want you to walk away from this video with a
couple of core ideas. Number 1 is that you need to be in business for yourself
if you want to really get ahead. Working for someone else is not going to do that
for you. Idea number 2, is that if you’re in
business that means that you’re marketing a product. Real estate is the
biggest commodity that anyone will ever deal with where you can make the most
money reasonably compared to anything else that you can do. Which means least
time and least effort. Maximum gain. And I think that’s what I love the most. I mean
I buy real estate every single day. Literally right now in my life. And I’m
here making this video with you. But today, someone is making sure that they
found the homes that they get it bought that they get it managed. When you make
that kind of money, you can have people work for you and employ that leverage
where they can make that happen. That’s the last idea I want to share is you
want to slam your bank account with 50,000 and 100,000
and these chunks of money and these residuals that build up. Because when
they do, it buys you back your freedom. In the book what I’m really going to document
are 3 core things. 1 how to make $500 a month on a deal that you do. 2,
how to get paid five grand up front for doing it. And 3, how to make at least
50,000 and hopefully closer to 100,000 on every single one of
those deals that you do. And this book will detail out the whole system of how
it works. It’s yours for free. But it’s all in service of you getting out there
and making real estate happen. It is the way that I know how to build wealth more
rapidly than anything else that I could share with you. And trust me, I’ve been
out there doing just about every kind of investment out there and I keep coming
back to real estate. Predictably producing these results. So,
best wishes. Thank you so much for watching the video. Click the link below.
You’ll get a copy of my book and also learn the other ways of engaging with me.
Coming out to one of my live events. Where I can help you have truly a
transformational experience and making sure that you can do in the next year or
two it took me 4 or 5 are way too many years. Take care. Subscribe. See you on tomorrow’s video.