Kris Krohn is a wealth strategist who leads the Strongbrook Group, a real estate investing and education firm located in Orem, Utah. His position within the Strongbook Group allows Kris Krohn the opportunity to assist both individuals and businesses alike. Not only does Kris Krohn provide one-on-one real estate counseling through his company, he and his colleagues also hold regular educational sessions to strengthen the real estate power of individuals and businesses across the country.
Recently, Kris Krohn spoke with Informationation Blog about the principles outlined in his book, The Strait Path to Real Estate Wealth. The book, which Kris Krohn authored, outlines the steps necessary to build successful investments.
Informationation Blog: In your book, The Strait Path to Real Estate Wealth, you outline four phases of wealth acquisition. What are those phases?
Kris Krohn: The four core phases outlined in the book are plan, find, purchase and serve.
Informationation Blog: What is involved in the planning stage you mention?
Kris Krohn: During the planning phase, investors take the time to pinpoint existing resources, which improves that investor’s discipline. This can set investors on a 10-year course that helps shape their success.
Informationation Blog: Could you tell us a little more about this 10-year course?
Kris Krohn: In the book, I emphasize the importance of having a 10-year plan when an investor looks at his or her portfolio. This 10-year plan will help an investor when going through the Strait Path system detailed in the book.
Informationation Blog: How important is it to find those existing resources early on in the process?
Kris Krohn: By working with resources he or she already has in place, an investor can move the process along more quickly.
Informationation Blog: How do the 10-year plan and asset identification process work together?
Kris Krohn: As an investor creates this 10-year plan, the investor should incorporate those existing assets into it. Once the plan is in place, an investor will see how he or she is able to move existing assets into areas where they can work better for the investor.
Informationation Blog: You have very specific advice regarding the type of home an investor should buy, right?
Kris Krohn: Yes, my Strait Path system emphasizes the importance of purchasing only single-family dwellings that have three, four or five bedrooms. A home purchase should also promise equity of at least 15 percent.
Informationation Blog: Why these stipulations?
Kris Krohn: These homes are usually the most lucrative for investors because they have the highest demand. With the Strait Path, investors focus on homes that have a high level of consumer demand.
Informationation Blog: What about drastic shifts in the market?
Kris Krohn: Everyone has been impacted by the ups and downs of the market in recent years. However, with the Strait Path, investors choose homes that are in demand from prices that are between the lowest in the market or at median range. For this reason, market swings don’t hit us as they do other real estate investors.
Informationation Blog: What about investors who are looking to make a quick purchase?
Kris Krohn: In the Strait Path, we recommend investors have the money in place to make the purchase ahead of time. Once that has been achieved, it’s important to have an eye for spotting great deals on the market. Getting there ahead of competitors is crucial. Lastly, by being a good negotiator, an investor can get the deal ahead of anyone else.
Informationation Blog: What if someone needs to finance the purchase?
Kris Krohn: Those following the Strait Path know the importance of finding a broker who is able to finance more than one home purchase under the same individual’s credit.
Informationation Blog: When looking for a bank, should investors focus on the one who offers the best rate?
Kris Krohn: No. We recommend centering the focus on making profits rather than saving on interest rates. Find a lender who can finance multiple real estate deals rather than trying to find one who can save you a percentage point.
Kris Krohn is the author of The Strait Path to Real Estate Wealth. Kris Krohn has broad experience in real estate investment, which allows him to help others grow their own real estate portfolios.