June 25th, 2010 → 4:36 pm @ Nik
Anyone who thinks that it’s impossible to make money through real estate in a diving or stagnant market is using the wrong system. Why would anyone want to spend time, money, and effort building something that will eventually crumble because of market forces beyond their control?
Why would anyone want to be subject to the whims of the market?
Of course, nobody wants insecurity and instability, but most people don’t know how to create security and stability with their investments. They follow the mainstream financial media, which teaches that “diversification” and “dollar cost averaging” are the keys to financial security.
The implicit message is that you can do nothing to control your investments: since you are subject to the fickleness of the market, the only route to take is to invest in a lot of different things, and then hope and pray that everything doesn’t plummet at the same time.
“Wide diversification is only required when investors do not understand what they are doing.” —Warren Buffett, investor, philanthropist
The truth is that long-term financial stability can be created. It is possible to secure almost full immunity from market fluctuations. In fact, the Strait Path system doesn’t even depend on appreciation to be profitable; what the market does is practically irrelevant.
In contrast, most real estate strategies require market cooperation. Strait Path followers view appreciation as icing on the cake — it’s nice to have, but it’s not necessary to enjoy sweet deals. They know that depending on appreciation is speculative investing — in other words, gambling. Market appreciation is beyond the control of the individual investor. We teach investors to profit from the things they can control. If things go well beyond that sphere, they benefit, and when things turn sour, they’re protected.
June 21st, 2010 → 4:29 pm @ Nik
A strong work ethic can be both a virtue and a weakness. I’ve known many people who are proud that they are “hard workers,” yet oftentimes working hard gets in the way of working smart. These hard workers often burn out when results don’t meet expectations.
Does your real estate strategy require hard work, or smart work? Are you engaged in actual productivity, or mere activity? Just because a person exerts energy doesn’t mean that he or she is producing real value. If that were true, you could shovel holes in your backyard and become a millionaire just through the activity of shoveling.
Productivity results in greater value. In other words, it results in profit in one form or another. Many real estate strategies require the exertion of energy that is often wasted. For example, a lot of fix-and-flip practitioners don’t realize the difference between market value and perceived value. They put a lot of money, time, and effort into cosmetic fixes that don’t raise the true market value of a home. Strait Path real estate, on the other hand, captures the market value without wasting all that energy.
I once met a man who had purchased fourteen investment properties in a city three hours from his home. After a year of six-hour commutes, he got burned out and sold the properties, even though he was making money. He learned the lesson that profit isn’t the only consideration when it comes to investing.
• How much effort and hands-on involvement will this investment require?
• How can I reduce my effort?
• Are the returns worth the effort?
• Is this sustainable — can I keep putting forth this much energy for a long period of time, or will I burn out?
June 3rd, 2010 → 12:14 pm @ Kris Krohn
Select the Right Loans
Maximizing investor portfolios also requires us to be strategic about which loans we choose. For example, if your goal is to pay a home off over time and you secured a thirty-year or fifteen-year fixed loan to do it, that strategy would cap out very soon and you would qualify for only a fraction of the loans that you would be eligible for if you had used more flexible loans. These specialized loans capitalize on the best cash flows and overall profits for your portfolio.
Also, maximizing the benefits of our formula requires that investors learn how to become profit conscious, rather than rate conscious. Higher interest rates can make investors more money than lower rates. Because the goal is to finance as many homes as possible, each additional property may be funded at a higher interest rate. Paying higher interest rates to particular banks enables us to purchase twice the investment properties as compared to what we could do if we went with the banks with the lowest rates.
June 2nd, 2010 → 12:12 pm @ Kris Krohn
Real Estate Investment Companies 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 accomplish, which is to leverage the maximum number of investment homes onto a person’s credit.
Our complex formula considers various banks and ratios, and 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. If you are unable to secure traditional financing for credit reasons, Strait Path has creative options for getting around that issue.
Use the Right Mortgage Broker
The banking industry is complicated.
It requires specific training and cut- ting-edge information to stay abreast of all your banking options. Our clients are able to acquire multiple homes because we’ve learned the secrets of the lending industry. Banks decide whether or not to fund investment properties based on how many mortgages you already have on your credit, how quickly they were acquired, what banks they are with, how your file was submitted, and what you are doing with your properties, just to name a few criteria.
We’ve learned how to maximize your ability to acquire the most investments possible.
Our formula for leveraging several homes on your credit requires us to use banks in specific combinations, so that each additional bank will follow and accept your next investment purchase. And since we’re looking ten years into the future, we protect your ability to purchase more homes in the future. For do-it-yourself investors, the key is to find the right mortgage broker who understands how to finance multiple properties on one person’s credit.
Discount Properties &Mortgages &Real Estate Compared & Contrasted
