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How To Buy Property With Multiple Owners

How do you buy properties with multiple owners? My name is Kris Krohn and that's

been my specialty for the last one and a half decades is buying properties by

bringing people together. You see in real estate, one plus one people can equal

eleven. In other words, we can accomplish a lot more than we certainly can

individually on our own. And today, I'm gonna break it all down how.

In doing any deal, generally, there are four different components. So, if we were

to say this is the PI that represents the deal then one of those parts as

someone has to actually find the deal. Someone has got to bring the money to

the table. Someone's got to put up the credit with

the bank so that you don't have to put up all of the money just a small portion.

and lastly someone's got to manage the deal. I believe wholeheartedly that you

should only do the part that you feel strongest about and then otherwise bring

in others. So, when we're talking about buying properties with multiple people,

who are these multiple people? Well, here's a real common one. In my world, I

find all the deals and I manage the whole strategy long-term. And the

partners that I often bring to the table, they've put up the money and usually

they also put up the credit. And at the end of the day. I'm doing this and this

and they're doing this and this. That equates to a 50/50 partnership. Now, I

want to drop a really important tip with you right now. In this scenario, there's

only 2 people involved in buying the property. The moment you involve more

than 2, you run the risk of becoming a security. And all of a sudden, you have

different laws that you have to abide by. That's governed by the security Exchange

Commission in America. I can't speak for other countries. But what that means is

let's say that someone was doing the deal, another partner was managing,

someone else's freedom, the money, someone else's their credit. Now, we've got 4

people involved in the deal. And all the sudden, security laws might prohibit that

type of partnership. They might say, "Hey, it sounds like you guys like the raising

funds and use involving different parties." So, for me to keep it safe. I

usually keep it to twos. If I need a third person, it's usually because the

person with money can't put up the credit and I have a way of bringing in a

credit partner without putting them in the LLC. So we stay a two-person deal but

we rent somebody's credit. So, what I want to do for you today is I actually want

to break down exactly what this looks like so that you can understand how this

turns into practical application. Before I go further on how to do this, I want

you to understand that with partners, always comes

potential for liabilities. There's some disadvantages. Obviously, there are

advantages .With their resources you can do things that you couldn't do on your

own. But there are also some serious disadvantages that you need to take a

look at. 1 is how well do you know this other person and what happens if there's

a personality conflict or there's a strategy conflict? Can you resolve it or

do you just part ways and sell the home and people you know wind up less

advantageous than when they had started? Unfortunately, I've experienced this

before. So, I think it's important for you to evaluate the character of the person

that you're getting business with. And when I evaluate a person's character, I

look at how teachable and reasonable are they. And I also look at how negative

versus positive they are. Because if I've seen two character traits really unwind

deals, the first one is just a really stubborn closed-minded person that is

only willing to see things with their perception. And they're not open to other

ideas or teachability. For me, that's a problem. We're not going to actually

partner do deals together if that's the.... If that's the case. The other though is

someone that is overwhelmed with fear or scarcity mindset. You know, just they lean

towards the negative. The property is in its fifth week. It's not rented yet. "The

property's not rented yet? Oh, my gosh. What happens if it never rents?" And that

person can become frankly a drain on your life. And that energy needs to be

managed. So I tend to find people that are going in with a promising attitude

and the promising energy and also ones that understand, "Hey, investing doesn't

always go the way you want let's find out how we're gonna act when it doesn't."

And as long as I don't have those 2 personality issues there,

we're usually game to go. So, I want you to be thinking that just because someone

has money or a different resource or a deal, it doesn't mean that they're the

right person for you to do business with. I want you to put them through these

other 2 filters I just shared with you. Let me walk you through what this looks

like what I actually partner with people. And we're actually deals. There's always

an order. There's a perfect sequence of things. So, what I have found a partner,

usually in my situation, I bring the deals and I do all of the work and I've

got the track record with 200 experts on thousands of deals. So, they come into the

situation knowing, "Okay. Kris can deliver. The goal is to multiply the property

every 5 years." And to double things, right? if we start with five properties

and if I we want 10 properties. In other words, we

are always starting off number one, with an alignment on strategy. And they

basically understand, Kris, you're doing the deals and you're bringing the deals

and you're gonna manage all the real estate. and my partners are usually the

funding partners. They have hidden assets in 401ks and IRAs and they're pulling

from those to be able to purchase real estate." Once we're totally clear on the

strategy, the second thing that ends up happening is we will actually find a

deal at that roughly around the same, time we are going to establish our LLC.

Which is a business entity a limited liability company that the real estate

will all be placed into for protection and form the identity of our partnership.

And we're all gonna open up a bank account. Basically the bank is for how

we're going to manage the money, the LLC is for how we're organizing the business.

And the deal is what makes it all possible. Once I have those things going.

then the third thing that happens is now we're going to do our due diligence.

We're gonna purchase the property and we're gonna do any fix up that was

called out on the particular deal. It might be 2 or 5 or 8 thousand

dollars of of cosmetics paint and carpet and things like that. After that, this

property goes into long-term management where me and my team will be doing the

day-to-day of the property and reporting on everything occurring. We're going to find

the tenants, we're going to manage age them. We're going to be approving any repairs

that need to happen along the way. Generating reports on how much positive

cash flow. How the bank account is affected. How its growing. And then the

fifth and final step is when is the right time to exit this property and

multiply. How do we put this into more deals. Those are the five steps that I

have when I work with my partners. And that just gives you an example of what

it looks like when people work with me. Hopefully it gives you an idea that if

you are the one doing the deals what you'd want to be doing or how you'd

structure that but in my case, people come to me and say, "Kris, I want access

to your team. I want to access to your deals. I love you guys to walk me through

this entire process. You've done it so many times. If you click the link below

in the description .it's all about partnering with me.

And has many different forms. So, you can look more into actually what that means and

what that looks like. And so check that out. But most importantly today, what I

wanted to do is basically share with you when you're involving multiple buyers.

Have clarity on who's going to be doing what. Make sure there's an alignment and

strategy vision and system. And then execute it. Make that deal happen. Un the

end, will hold the property in LLC so the person with the credit and money might

be buying it you know get transferred into the LLC that is co-owned 50/50 by

both of us. I'll take care of the management. When it comes time to sell,

it's time to multiply and keep on basically growing the strategy onward

and upward. Okay, thank you so much for watching today's video.

Hopefully it answered your questions and helped you understand what it looks like

for you to actually transact properties with multiple people involved. Hopefully

you got a better idea of some of the legalities. And for those of you that are

saying, "Wait a second. How can I actually step into some of Kris's assets and

team to actually do this for me. You can find all of that below in the

description. And other than that friend, make sure that you are a subscriber.

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throughout your life. Click the link. Get with me my team. Let's get over what we can do

together and otherwise subscribe and I will see you on tomorrow's video.