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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.

getstartedbutton 5 Profit Centers

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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.

getstartedbutton 5 Profit Centers

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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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“Got a check for 80K for 90% discounted real estate because a thought from a book I just read…”

Mar 31 | by duaneclark | Real Estate Investing
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From Kris Krohn: A client was thinking about putting 80K into one of our REIC REO pools. In this pool we are buying real estate in 35 different states at often 90% discounts from what they were sold at two years ago. I bought this one house for under $7,800 and it sold two years ago for 150K. Homes like this had one of my clients very interested, but he was concerned because I take half the profit for getting him in. Once in a while I meet people who don’t like this idea because they want to make most of the money. This caused me to have a brief second thought. The same time I was interacting with this client, I was reading Atlas Shrugged by Ayn Rand and came across the concept of “ethical egoism.” I became convinced that the best insurance policy on the success of our REO pool is making sure that the deal is also good for me. Well, after reading and analyzing that concept, I re-focused and told the client (in confidence!) that we set up the business not only for the success of our clients but also for me! To benefit the client and myself, the operation succeeds and we all win! It is important for me to create win-win situations especially when we are buying hundreds of homes at a time for 10 cents on the dollar. When I am watching out for my own best personal interests, it allows me to build the success I need to help others create their own personal success.

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