Archive for From the Coaching Corner

Don’t scare yourself

Remember watching Jaws for the first time? It was terrifying. You knew it was an undersea monster, eating teenagers and destroying boats. The key to building that sense of terror is that you didn’t actually see the shark until the very end. It was more terrible in your mind than the shark was in real life.0 300x225 Dont scare yourself

In a similar way, when I was a kid, we liked playing hide and seek, but hated it when my dad played with us. I love my dad, but he has a completely twisted strategy for winning at hide and seek with his kids. He’d hide somewhere dark and not in a way that we wouldn’t find him. For example, he’d just stand in the closet and close the door. That was it. When we’d open the closet door, he’d yell and jump out at us. While we stood there screaming at the terror that just lunged out at us from the dark, he’d run past us and get to base. Here’s where these come together.

It’s the things we don’t see that frighten us.

It’s true with investing as well. The part about investing that frightens most people away is the uncertainty. We can’t see what’s going to happen in the future. There’s another blog post about that. The other part is that with our Accelerated program, where we’re helping our members find great investment properties in Phoenix, Arizona and Las Vegas, Nevada, the fear is that you don’t get to see what’s going on there unless you live there or you take frequent trips to visit. And how can you be sure that the investment is really a good one? It’s easier when you live in the same city to know which neighborhoods are good, where the good schools are.

Don’t worry. We’ve got that covered. We have relationships with local agents and property management groups who know what’s what because they live there. They make sure that our investors don’t buy up slums or get tenants who will tear the place apart. Our local resources turn on the lights so that you don’t have to look into that dark closet, hoping that a horrible surprise doesn’t jump out at you. Real estate investing doesn’t have to be terrifying.

Learn and Grow Over Time

Sapling Small1 300x200 Learn and Grow Over Time

“Principle-centered people are constantly educated by their experiences. They read, they seek training, they take classes, they listen to others, they learn through both their ears and their eyes. They are curious, always asking questions. They continually expand their competence, their ability to do things. They develop new skills, new interests. They discover that the more they know, the more they realize they don’t know; that as their circle of knowledge grows, so does its outside edge of ignorance. Most of this learning and growth energy is self-initiated and feeds upon itself.”

—Stephen R. Covey, Principle-Centered Leadership, p. 1

 If you have been a member of REIC for a while you are familiar with the program. Your membership fee brought about a learning curve which, for some of our members, is huge and intimidating. For others, it is simple and common-sense. For everyone, though, it is a great learning experience.

 One of the main features of this experience is the actual education our members receive through the coaching sessions. Our coaches are very well versed in all components of the Strait Path process. They know it so well because they have done it themselves, and because they have taught it to so many people. It is difficult to teach a subject well without knowing it intimately.

 If a member plows through our coaching program, they are done in 3 to 6 months. But their game plan covers a ten-year period. So, what can our members do to keep the enthusiasm they experienced during their coaching alive over their ten-year game plan period? I have a few suggestions:

  1. Read one good book per month – There are literally thousands of good books available that will keep your love of learning alive during your game plan period. We have started providing you with title suggestions, and will continue to do so at the rate of one to two titles per month. Pick a subject that you would like to dive into and start reading.
  2. Contact your coach regularly – Your membership provides you with coaching for life. Most of that will be done soon after becoming a member, but in order to stay grounded in your goals, meet with your coach at least once per calendar quarter. Calling your coach once per month will give you the opportunity to see if we have anything new going on. Based on past experience, it is likely that something interesting has happened.
  3. Read through your game plan – Doing this will keep it fresh in your mind and help you to stay on track.
  4. Utilize opportunities to learn – Opportunities to learn are all around us. Seek them and you will find them. When you find an opportunity, see it for what it is: an opportunity. Not all opportunities need to be taken in order for you to continue your personal growth while you are on the Strait Path to Real Estate Wealth.

 By following these four simple suggestions, a couple things will happen. One is that they will soon become a habit. Then the fruits of these efforts will fulfill what Covey stated above: growth energy that is self-initiated will feed itself. When that begins, hold onto your hat because it is going to be an interesting ride!

 Comments? Add them below.

Keys to Purchasing Multiple Investment Properties

Keys to Purchasing Multiple Investment Propertiesinland empire investment property Keys to Purchasing Multiple Investment Properties

  • Use the right mortgage broker who understands how to finance multiple homes on one person’s credit.
  • Become profit conscious, rather than rate conscious. Go with the banks that let you buy the most real estate, not those with the best rates.
  • Use specialized loan programs, which allow you to maximize the number of homes on your credit.
  • Use Compassionate Financing to optimize your debt-to-income ratio.
  • If you’re unable to get approved for traditional financing, use creative financing options to get started while you’re improving your ability to secure traditional loans.

The Worst Investment in America

Kevin Clayson, the vice president of REIC, wrote an outstanding article called The Worst Investment in America.

You would be surprise to find out that more than 200 million Americans invest into a particular investment every month with the following features:

  • It earns on average a zero to negative 3 percent annually
  • Once the investment is fully funded, it produces no income, no dividend, yet you are still required to pay taxes on it annually
  • Every dollar you put into this particular investment, increases rather than decreases risk.

Please enjoy this document by downloading it below!

The Worst Investment in America

How do you Succeed when others fail?

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.

Investment Property Purchased

I want to take a few minutes today and talk about my experience of purchasing an investment property with REIC. I started looking at homes with my transaction specialist and together we looked at at-least seven or eight homes. Some of the homes I just hated, some were ok and other REIC clients may like them but I personally didn’t feel like I wanted to buy them. All of the ones we looked at were found by REIC.

Being a little overly enthusiastic I actually searched on Craig’s list and KSL but about ever day with new properties that I thought were a great deal. Every single time, my transaction specialist would review the property and find some reason, that I couldn’t find, that showed me that it wasn’t really a great deal.

It really helped me to appreciate all that the research department goes through and how difficult it is to find a legitimately good deal. I ended up making four offers. One was a bit out of my price range so I made a low offer and it was rejected. Two were short sales and there were others with offers ahead of me… short sales are kind of a slow game. One of the offers was accepted!!! I had an inspection done on the house and it didn’t pass perfectly but the sellers were willing to spend a little bit of time bringing it up to our expectations.

I really liked the house. It had been completely remodeled inside so it had brand new carpet, paint, doors, windows, bathrooms, kitchen and even a brand new electric stove. To be hones my wife was a little jealous especially of the new windows and stove. We have pretty old windows on our house that let in a lot of cold air and she seriously would have swapped out the stove if we had gas hookups in our kitchen.

Obviously the coolest part is that the day I bought the house my net worth increased by thirty thousand dollars and it will continue to grow from this house from now till the time I sell it. Another cool part is that I will make money through helping people. It is such a great feeling knowing that I will actually help empower people and help them purchase the home from me rather than being stuck renting and never making any headway.

~Tony Purcell

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