The Rich Somers Report Unlocking Wealth: 90% of Millionaires are Created From Real Estate, 100% of Billionaires are Created From Private Equity | Kris Krohn E385
Aug 14, 2025
In this discussion, Kris Krohn, a real estate investor and private equity expert, shares his journey from saving $5,000 for his first home to building a vast real estate empire. He reveals how house hacking and leveraging equity propelled him to financial freedom. Kris highlights the shift from real estate to private equity, noting the vast opportunities in acquiring baby boomer-owned businesses. The conversation also touches on strategies for maximizing time and health, the importance of financial literacy, and the adventures that come with wealth.
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First Deal House Hack
- Kris Krohn saved $5,000 over 14 months to fund a 3% down FHA house-hack with a basement rental that covered the mortgage.
- He used the home equity from that first property to fund subsequent down payments and scaled to 25 homes in four years.
Start With FHA House Hacking
- If you have no money, save for a 3.5% FHA down payment and house-hack the primary residence to live mortgage-free on your side.
- Use rental income from extra rooms to accelerate saving for the next down payment.
One Million Businesses For Sale
- There are about 1 million businesses for sale but only ~80,000 sell each year because many fall between buyer pools.
- That creates an opportunity to acquire smaller established companies that big PE ignores.