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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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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 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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