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Levels

Jun 11 | by duaneclark | Cash Flow, Economy, Equity, Financial Education
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REIC Program Levels

Get started now to discover which of the following 3 levels you fit in.

There are 3 distinct phases of building real estate wealth:

  1. Preparing to invest
  2. Building a portfolio
  3. Retiring

REIC clients have varying amounts of assets and degrees of ability. We’ve therefore created specific programs to cater to the needs of each client based on the 3 phases above. These include the following:

We determine which level fits you best after our initial, no-obligation consultation.

Whichever program fits you best, you can rest assured that we’re with you every step of the way. You have intimate contact with us throughout the process. 

We answer your questions, address your concerns, help you avoid common pitfalls, connect you with our community of investors, help you push through obstacles, and ensure that you enjoy the ride.

Home Buyer’s Assistance Program

This program is designed for clients in the first phase of preparing to invest. They are financially unable to purchase real estate and must take specific steps to be able to do so.

This program provides the following:

  • 6 months of credit repair and education
  • Budgeting software and tutorials
  • Mortgage preparation and prequalification
  • Home maintenance education
  • Successful mindset training

Clients complete the program by purchasing a discounted property. They are then able to enter the next phase of building a portfolio

If you have not established sufficient credit or if you have damaged credit due to bankruptcy, foreclosure, short sale, or unemployment, then our HBAP program will prepare you for building an income-generating real estate portfolio.

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The Strait Path to Real Estate Wealth Program

This program is designed for clients in the build phase. They have work history, average credit, and are in a position to begin or continue building a portfolio.

This program helps you create and execute a 10-year game plan to purchase 10 homes and generate at least a million dollars for retirement.

This program utilizes REIC’s complete Power Team to find and purchase discounted properties, then locate qualified tenants to live in the homes.

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Wealth Retirement Program

This program is for clients who have already built substantial assets and are looking for safe and sustainable cash flow during their retirement years.

We help such qualified investors locate, purchase, manage, and maximize the cash flow of equity-rich properties.

Most people ready to retire must rely on residual income from their nest egg. Unfortunately, most retirement options, such as 401(k)s and IRAs, have limited cash flow.

Real estate purchased free and clear the REIC way often leads to a residual income of 20% annually. Even when markets fluctuate, real estate cash flow rarely does. This therefore provides the stability retirees want.

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Real Estate Deals

Jun 2 | by duaneclark | 90% Discount, Equity, Money, REIC, Real Estate Investing, Strait Path Real Estate
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Fact: The smartest real estate investors make greater profits during a recession than at any other time.

While that may not be shocking news to you, you’re probably wondering exactly how it’s done.

REIC offers two ways to purchase extremely discounted real estate and cash in on this recession: 1) through local investing using the Strait Path™ system, and 2) through bulk purchase of “REOs,” or bank-owned properties, which are made available to clients of our investment program.

Purchase Real Estate in Your Local Area at 15% Discounts or Greater

One of the cardinal rules of our Strait Path™ system is to never purchase real estate unless you can get at least a 15% equity position up front.

Our revolutionary finding system utilizes four key elements to discover the best deals in local areas, usually before other investors are even aware of them.

In other words, we find the “deal-of-a-lifetime” every day. And in the current market, discounted real estate is easier to find than ever before.

Join our investment program now to capitalize on this recession.

Purchase REOs at 90% Discounts

Download “The Perfect Real Estate Storm” (PDF File)

Buying bank foreclosures at incredible discounts is probably the most profitable form of real estate available, but the opportunity to do so is rare because it only occurs during economic recessions.

Banks can leverage up to ten times their assets, which gives them an incredible advantage to create profits during typical markets.

However, this can backfire if, during an economic slowdown, a bank’s real estate portfolio has too many high-risk loans that foreclose. A bank must maintain particular ratios to be able to continue lending, and if they are carrying too many REOs (real estate-owned properties) on their books, then they cannot lend until they liquidate their bad debt.

In other words, their foreclosed homes actually count against their ratios and prohibit how much lending they may do. In order to avoid foreclosure themselves, banks will sell off their real estate at tremendous discounts.

The fastest way for a bank to liquidate its REOs (the real estate it owns because they got the house back after a loan defaulted) is by selling off the homes in bulk packages. Banks will either sell or auction these homes off to large accredited (valued at over $100 million) institution; it is nearly impossible for everyday consumers to buy real estate at these steep discounts.

The past has shown us that there is usually a small window of opportunity for this type of real estate investing. Wise investors, who successfully purchase and manage these REOs, create the greatest wealth in the fewest number of years.

This REO form of investment is particularly powerful because it can often be acquired at a 90% discount, and held free and clear in order to create a pure cash flow.

The current recession, initiated by the subprime mortgage crisis, is different than most recessions. Because organizations like Fannie Mae created seven years’ worth of high-risk loans, foreclosures are predicted to remain at a high through 2012. This may mean that the window of opportunity on REOs could last the same amount of time.

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How do you Succeed when others fail?

May 13 | by duaneclark | Financial Education, Lease Option, REIC Testimonials
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This is a question that I have asked myself many times. This is a question that I have asked many mentors in my life. This is a questions that I asked Jerry Kou. Jerry has been a client of REIC’s for about five months now. He just recently bought his first investment property. Being new to real estate, he didn’t know how to do it himself. He sought out a team of professionals who could assist him and teach him what to do. That is why he became a client of REIC, because of the system, team, and education they have provided to him.

There was one area that Jerry sensed some apprehension in. It was in executing a lease option. This is when we find a tenant to occupy the property using REIC’s compassionate financing program. Having never done this before, he felt anxiety, fear, doubt if it would work, but he also had faith, hope, and believed it could be done. He was willing to apply what he had learned from his personal portfolio consultant, and empowered himself with knowledge.

Once he had his home under contract, he started to market the property. He didn’t wait for someone to tell him to start, he just took the step on his own. He had 17 people view the home in two showings. He had seven of those fill out an application for consideration, and had three people begging to pay him between $4000 to $10,000 to move into his property. He called back the family who he believed would be best for the property to see it again. They arranged to meet at 10:00 PM. At that appointment, this particular family decided to back out at the last minute. Jerry didn’t become fearful, didn’t doubt, didn’t get worried. He immediately picked up the phone and told the next family that one had decided to not move forward on the purchase of the home. He asked if they were still interested. They made an appointment for the next family to see the home at 8:00 AM the next morning, had them sign their contract, and went to the bank that afternoon to pay him a $10,000 option payment and the first month’s rent for $1350. Jerry said, “That the hardest thing to do in the Compassionate Financing Program is deciding which deserving family will get your home.” He had his investment property under contract before he even closed on the property.

Why did Jerry succeed? He could have easily said that I cannot market a property I don’t own. I don’t know how to run an open house. I can’t call someone at 10:30 PM to see if they are interested in leasing my home. But he didn’t. He said I can do all of these things. Jerry was:

1. Teachable
2. Had a vision of what he wanted
3. Applied the knowledge from his mentors
4. Empowered himself that it is possible.
5. Did not give up.

You to can succeed, just like Jerry has. The choice is yours. Will you succeed where others will fail? We shall see.

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5 Profit Centers

May 6 | by duaneclark | Cash Flow, Real Estate Investing, strait path
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The interesting thing about Strait Path™ real estate is that even though profit is just one of six considered factors, it’s still far more profitable than other forms of investing.

This is because the system offers five profit centers, whereas others only offer one or a couple. The five profit centers include the following:

  1. Bargain Equity
  2. Cash flow
  3. Down payment
  4. Appreciation
  5. Tax benefits

1. Bargain Equity

This is the equity secured upon purchasing an investment. Fifteen percent or more is the target. Depending upon the size of the home and its discount, you may make more on one purchase than you make all year in your job.

2. Cash Flow

Cash flow is the monthly amount you receive from your tenants greater than you pay on your mortgage.

3. Down Payment

The technical term for this is “option consideration,” which is given by tenants to secure their opportunity to purchase the home within a specified period of time. This is non-refundable and we receive $5,000 down on average.

4. Appreciation

Appreciation is obviously the rise in value of your properties due to increased demand over time. What’s notable about Strait Path™ real estate is that we don’t count on appreciation, though we do account for it.

5. Tax Benefits

It has been our experience that tax law allows most homeowners to deduct mortgage interest from their taxes.* This is a huge advantage in Strait Path™ real estate, since the goal is to purchase as many homes as possible.

*Please consult your tax professional to confirm if you are able to claim this deduction.

With a fixer-upper, investors receive the first and, if they’re lucky, the fourth. They have no cash flow, they do not get a down payment, and capital gains taxes often wipe out any earnings.

With rentals, investors enjoy tax benefits and usually benefit from appreciation. They’re lucky if they get a good deal up front and receive a positive cash flow, and they receive no down payment.

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4 Phases of Investing in Real Estate

May 1 | by duaneclark | Financial Education, Real Estate Investing, strait path
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Phase 4: Serve Through Compassionate Financing™

Compassionate Financing™ is the engine that makes the whole system run. Compassionate Financing™ is a rent-to-own program similar to lease options and other seller financing programs. It’s a powerful and highly profitable system for the following reasons:

The Benefits of Lease Options, Without the Flaws

A lease option gives renters the opportunity to purchase a home within a specified period of time and if certain conditions are met. They benefit renters by offering a gateway to home ownership, and investors like them because they can collect a down payment and charge a higher lease payment than they would otherwise receive in rent.

Unfortunately, lease options are dangerous for most homebuyers because of how they are applied by many investors. Misguided investors collect large, non-refundable option considerations and stipulate a short time period for the lessees to purchase the home. Then, when their tenants are unable to get traditional financing, they boot them out of the home and do it all over again with someone else.

In contrast, the end goal of Compassionate Financing™ is for tenants to purchase our homes. We deliberately do everything in our power to ensure that they do, even providing financial coaches and assistance with credit repair.

We’ve implemented a number of revolutionary elements into our contracts to reduce risk and create a more equitable arrangement between investors and tenants. Interestingly enough, this approach actually makes us more money than most investors who use traditional lease options.

Much Higher Profits than Renting

Compassionate Financing™ offers much higher profits than rentals. Its benefits include the following:

  • You receive anywhere from $50 to a few hundred dollars per month more than rentals.
  • You collect a down payment (technically an “option consideration”) up front.
  • You don’t pay for property management fees.
  • You never have to pay for repairs.
  • You can sell the property on the back end for at least its current market value, which is often not possible with rentals because of how they get treated and the fact that they’re not purchased by tenants.
  • It lowers your debt-to-income ratio relative to rentals, which means that you can purchase more properties.
  • You save 6 percent on realtor fees when the home sells.
No Property Maintenance

Unlike rentals, with Compassionate Financing™ there is no property maintenance for investors, since the contract stipulates that tenants are responsible for all maintenance. The only time and effort involved is in marketing the property, screening tenants, and putting contracts in place.

Service to Tenants & the Community

The best part of Compassionate Financing™ is that it provides huge benefits for tenants that they cannot get in any other way. They love the feeling of control and ownership. It saves you the time of fixing toilets, but it gives them the opportunity to make improvements and feel like they’re really creating a home environment, which is impossible for renters.

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4 Phases of Investing in Real Estate

Apr 30 | by duaneclark | Financial Education, Real Estate Investing, strait path
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Phase 3: Purchase

REIC employs a unique purchasing system and proprietary financing formula. It enables us to help people with average jobs and credit do something that few lending institutions can, which is to leverage the maximum number of investment homes onto their credit. Our complex formula considers various banks and ratios, then combines with our real estate system to achieve this.

Your success during this phase is determined by three primary factors: 1) using the right broker, 2) selecting the right loans, and 3) managing your debt-to-income ratio. And, if you’re unable to secure traditional financing for credit reasons, there are creative options for getting around that issue.

Use the Right Mortgage Broker

We maximize your ability to acquire the most investments as possible because we’ve learned the secrets of the lending industry. The key is to find the right mortgage broker who understands how to finance multiple properties on one person’s credit.

Select the Right Loans

The specialized loans we use capitalize on the best cash flows and overall profits for your portfolio.

Creative Financing

Strait Path™ real estate is that it can be applied by virtually anyone, no matter their history and the state of their credit. For those who cannot get approved for traditional financing, there are two ways to finance investment properties: “sandwich financing,” and partnering.

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4 Phases of Investing in Real Estate

Apr 29 | by duaneclark | Real Estate Investing, strait path
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Phase 2: Find

Today we discuss Phase 2 of the the 4 Phases of Investing in Real Estate.  The Strait Path™ system dictates that investors purchase only single family homes with three bedrooms or more and with at least 15 percent equity. Finding these deals is a function of four keys: 1) knowing where to look, 2) knowing how to look, 3) knowing what properties to look for, and 4) speed.

Look in the Right Place

Other real estate systems teach you to look where every other investor is looking: auctions, short sales, foreclosures, fixer-uppers, etc. Since the competition is stiff in these arenas, it’s extremely difficult to succeed. In contrast, we find properties on the largest listed property database. When used properly, it saves tons of time and effort in the finding process.

Look in the Right Way

Our system uses strategies for combing through piles of data to extract only the best deals. What’s more, you don’t even have to look yourself when you use realtors to find properties for you. When done the right way, 95 percent of the finding work is done by other people.

Look for the Right Properties

We’re very strict about our criteria for purchasing homes. Since we only buy the most wanted real estate (entry level up to the median), we’re far less affected by market swings and we always have a market for our homes no matter how bad the market is. Also, we only buy homes in livable condition; we don’t waste our time and energy on fixer-uppers.

The Power of Speed

Our system allows you to find the best deals before anyone else. These deals are, quite literally, here today and gone tomorrow, which means that we must be prepared to act on them immediately. We’re usually one or two days ahead of the competition on the properties we find, which is a rarity in the highly competitive market of short sales and foreclosures.

Negotiating is also a critical aspect of speed. Traditional negotiations take days, and sometimes weeks. Our system eliminates the common back and forth and seals the deal the same day, before other offers can come in.

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4 Phases of Investing in Real Estate

Apr 27 | by duaneclark | Financial Education, Real Estate Investing
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Phase 1: Plan

For the next few days I will discuss the 4 phases of Inesting in Real Estate.  Today we will cover Phase 1: The Game Plan.  The purpose of this first step is three-fold: 1) to identify your existing resources, 2) to outline a 10-year million-dollar game plan for applying and leveraging those resources within the Strait Path system, and 3) to help investors stay disciplined.

Identify Existing Resources

Most people are unaware of their assets and resources that can be leveraged to produce greater income and net worth. These assets lay dormant and unutilized, resulting in a failure to act and lost opportunity costs. For some people, they may be enough to create a stable retirement in just a few years. You may be surprised by what these hidden assets are.

10-Year Portfolio Game Plan

Once your assets are clearly identified, the next step is to create a 10-year million-dollar game plan that maximizes them through real estate investing. The goal is to shift unproductive resources into areas of higher productivity. A typical — and very achievable — plan results in an investor purchasing about twenty properties and making over $2 million within ten years.

Long-Term Discipline

The Strait Path™ system is significantly hindered when investors are unable to stay disciplined over the course of 10 years or more. When applied in its most pure form, the process builds on itself to provide exponential growth. When all profits are consumed, especially in the initial stages, only linear and sporadic growth is possible.

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Come to an REIC seminar to learn more about REO’s

Apr 26 | by duaneclark | Real Estate Investing
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We know you’ve heard all about REO’s. You know that “90% discounts” you hear on the radio and see all over our videos, websites, seminar presentations and blog posts. Well, last week, in MSNBC.com’s Real Estate section, there was article all about REO’s. Check this out from the article:

“The number of homes entering REO status (short for “real estate owned” by a bank) climbed 35% to 257,944 — the highest quarterly total ever — from 190,543 in the first quarter of last year and 9% from the previous quarter, according to real-estate data firm RealtyTrac.”

Pretty interesting stuff. But the more interesting part, is about how many REO’s the banks have and how many are available on the MLS. Keep reading!

“Just how many foreclosures move through the foreclosure process and when banks sell them will be key factors in how much more real-estate prices could fall before they recover.

Most of these bank-owned properties are not making it onto multiple listing services, analysts and brokers say, despite banks having more of them to contend with.

“We have about 860,000 REOs in our database, and only about 30% of them are available for sale on the MLS,” Sharga says. “That means you have another 550,000 to 600,000 that have yet to hit the market.”

So if banks have all of these REO’s and are selling only 30% of them and have very limited time to get the toxic assets off of their books, how do they get rid of them? These aren’t available to the general public. But that’s where our “90% discounts” come in to play. Come to an REIC seminar to learn more about how REIC is participating in purchasing the 550,000 to 600,000 homes that have yet to hit the market.

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Teach your children about finances early in life

Apr 22 | by duaneclark | Financial Education
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So we talk a lot at REIC about what to do for your retirement and the broken financial paradigm. A lot of people we come in contact with are already grown-ups! They have families, kids, grandkids and a few are getting ready to retire. We commend you for taking the steps to become financially liberated and for working hard with us to make a better life for your family and to put you in a position to help your community. But, when the day comes when your kids grow up, what did you teach them about money? Will they be as smart as you are now, with real estate portfolios and smart investments? What did they learn from your experience with REIC?

In the Education section of The Seattle Times, Jolayne Houtz wrote an article, “Teaching your kids about money.” Now, we don’t have a real estate for kids at REIC just yet, so the financial coaching for your children is up to you.  Houtz wrote, “there’s never been a more important time for children to learn about managing money. If Americans’ crushing debt loads and rising bankruptcy rates among young adults aren’t convincing, consider this: Many college administrators believe credit-card debt leads more to dropouts than academic failure.” YIKES! All that money you are putting into your kids’ college tuitions…think about it? Financial literacy isn’t something they teach in schools. She goes on to say that “parents are mostly on their own to tackle a subject that many find at least as hard to talk about as sex or drugs. Because that discussion isn’t just about dollars and cents. It’s about teaching kids values and personal responsibility.”

So, even though we don’t have a Real Estate Made For Kids program yet, we do have excellent coaching programs that train our clients in developing the right mindsets for investing and for life. Hopefully, what you learn with us, you can pass along to your younger generation.

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