Imagine your favorite secondhand store. Personally, I like hunting around secondhand stores every now and then because you can find some totally awesome stuff. Of course, the definition of awesome depends on who’s talking. One time, I found a great surplus US Navy peacoat and snatched it up. I get compliments on it all the time, which means I’m fairly certain I made a good find there.

my clown pants, including awesome bowling shoes

There are some things at the secondhand store that don’t stay there for long because they’re pretty much universally awesome. To bring this back to the earlier discussion, the market indicators mean that real estate is on sale, virtually sitting on the clearance shelf with a big sign on it that says “Huge discount!”

In a couple of very specific real estate markets, you can make your investment dollar go much farther than it would in other places and we’re helping our clients buy as much of this clearance sale real estate as we can find. There are currently two places where the conditions are just right for what we’re doing and those are Las Vegas, Nevada and Phoenix, Arizona. We’re not just scooping everything up; we’ve got very specific criteria for choosing what our members buy to make sure you’re getting a valuable piece of property. We want you to end up with the real estate equivalent of a baseball autographed by Joe DiMaggio that someone had hiding in a drawer and not the $5 clown pants, just because they were cheap.

REIC’s corporate office is located in Orem, UT. Orem and Provo, UT comprise the 2^nd largest Metropolitan area in Utah (the largest is Salt Lake County). I received an e-mail the other day containing a fascinating local real estate statistical report produced by a local real estate firm, and I’d like to share some of that information. Because of the population density and relative economic strength of the area, these current real estate statistics are an interesting read.

Over the last 180 days, our local real estate statistics look like this:

Active Properties: 3,055
Median Price: $214,900
Average Price: $295,357
Median CDOM: 116

Under Contract: 649
Median Price: $214,900
Average Price: $250,863
Median CDOM: 81

Sold Properties: 52,511
Average Price: $216,598
Median CDOM: 61

There are 23 ZIP codes in Utah County where residential real estate is actively being sold. Of the 23 Zip codes, only 3 have experienced an increased median sold price. The rest have dropped—some of them significantly (Alpine, UT: -23.4%; American Fork, UT: -14.5%; Mona, UT: -52.9%; and Mapleton, UT: -12.2%).

Amid the general economic gloom, the report provides a few bits of information that we Utahans can be proud of:

1. Utah is ranked #1 in a major economic outlook report by the American Legislative Exchange Council. I have personally never heard of them before, but the information came from the third edition of the “Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index.” Next in line were Colorado, Arizona, South Dakota, and Florida.
2. Utah is the 2^nd healthiest state in the Union, following Vermont as the healthiest state. Utah was ranked 5^th last year, so we have improved a bit since then.
3. Utah is ranked #1 in Forbes Magazine’s “The Best States for Business and Careers.” A high ranking like this one should bring businesses and jobs to Utah. That would be great for our local economy!

 As a real estate investor, knowing the statistics provided above for your local area will help you to make better deals when you buy local real estate. Contact your realtor for information related to your local statistics.

Source:

Collette-Marti, Lorna; Craig Collette. The Collette Team: Bi-Annual Real Estate Market Report. Equity Real Estate. November 2010.

Reuters.com came out with an interesting article today highlighting “The Giving Pledge” launched by Bill Gates and Warren Buffet. So far, 40 billionaires have pledged to give away most of their fortunes during their lifetime or after their deaths. As a part of this, they’ve asked these billionaires to publicly state their intention with a letter of explanation. Below, I wanted to share with you a few of the excerpts:

Laura and John Arnold, hedge fund manager: “We view our wealth in this light — not as an end in itself, but as an instrument to effect positive and transformative change.”

New York City Mayor Michael Bloomberg: “If you want to do something for your children and show how much you love them, the single best thing — by far — is to support organizations that will create a better world for them and their children. And by giving, we inspire others to give of themselves, whether their money or their time.”

Philanthropist Eli and Edythe Broad: “Those who have been blessed with extraordinary wealth have an opportunity, some would say a responsibility — we consider it a privilege — to give back to their communities, be they local, national or global.”

Investor Warren Buffett: “Were we to use more than one percent of my claim checks (Berkshire Hathaway stock certificates) on ourselves, neither our happiness nor our well-being would be enhanced. In contrast, that remaining 99 percent can have a huge effect on the health and welfare of others.”

Banker George Kaiser: “I had the advantage of both genetics (winning the ‘ovarian lottery’) and upbringing. As I looked around at those who did not have these advantages, it became clear to me that I had a moral obligation to direct my resources to help right that balance.”

There are plenty more excerpts that you can read! Just click here.

-Brian Tracy, Author of The Way to Wealth

The Strait Path to Real Estate Wealth is more than just a book about real estate. It’s a manifesto on wealth thinking. If you want to change some things in your life, you must change some things in your mind, and Kris understands that true change begins with your thinking. This book challenges your thoughts on building wealth and offers you a groundbreaking path to transform your financial future.”

-Orrin Woodward, Co-Author of the New York Times Bestseller

“SAVE MONEY… SAVE MONEY… forrrr… retirement…lol… im getting old & is scared of the futre”

This friend of mine is not even 30 yet! But unfortunately, this thinking is not uncommon. A lot of us have asked this question with quite a bit of serious concern. What would you say to her to help her get out of her scarcity mode??

It’s the Senate’s “multiprolonged overhaul of financial regulations.” 1,400 pages! Seriously!?

MSNBC reported a story today that addresses the shaky (which is an understatement) future of the Wall Street reform. The article goes on to say that “in an effort to reach consensus, some of the contentious issues have been left for regulators to sort out – if and when the bill becomes law.” Well, hopefully at this point, most of America has learned something about investing in Wall Street. To, uh, not do it.

Not only is the stock market unstable, a lot of the people who run Wall Street are even more unstable and not to mention power hungry and ridiculously overpaid. Like waaay overpaid. But, no matter.The government can hash out 2,000 manuscripts at 5,243 pages each for all we care.

While some people sit around and wait for the Senate and Congress and Obama to sort out the mess of Wall Street, we REIC-ers will continue to build our real estate portfolios. We aren’t just talking the talk and creating documents with too many big words and rules, we are actually doing real estate and building our futures.

A lot of people have asked me lately if this economy is good for lease options. I believe the economy has created a perfect opportunity for investors to utilize a lease option strategy, and likewise created a bridge to homeownership for families struggling under the weight of bad credit, job loss, and tight lending guidelines across the board.

Homeowners are finding that a lease option can help keep them from slipping into foreclosure, and even turn a scary situation on their primary residence into an opportunity to become a real estate investor.

If lease options are set up correctly, the investor saves thousands of dollars in vacancies, repairs, and eventual selling costs while enjoying a positive monthly cash flow from day one. In addition, investors do not have to take care of property management and maintenance, and they are giving families that have been hit hard by the global crisis a chance to achieve home ownership.

The question remains: how many families are out there looking for lease options? A common misconception is that only a small group of individuals are interested in a lease option program. I believe investors underestimate how many families could benefit from a lease option. The hundreds of families I have helped enter a rent-to-own program typically fall into one of three categories:

1. A family with great credit and a good job that can qualify to finance a home today. They are interested in building more equity than the banks will allow, and do so by spending thousands less on a down payment through a lease option. These families may already be homeowners, but are looking to move. They have discovered that in order to move into a new home without selling their existing home, they must have a minimum of 30% equity in their existing home. The only way many of these very qualified candidates can now purchase a home is through a lease option. In many instances, they spend less money and build more equity, but still enjoy the benefits of homeownership.

2. A family that purchased a house they should not have qualified for, but loose lending practices and dangerous ARM loans allowed them to buy the home. Many of these families found that as their ARM’s reset, they could not afford the new mortgage payment. Perhaps they defaulted on a payment or two, perhaps they sold the home as a short sale, or perhaps they slipped all the way into foreclosure. They still have a good, stable income, but the new mortgage was out of reach, and their credit has taken a hit. They can no longer qualify for conventional financing, but they are not willing to go back to renting, because they are used to the benefits of homeownership. These families are great candidates for a lease option because they want to be in a home and they can afford the payments.

3. Renters who are looking to become homeowners are the top candidates for lease options. With millions of Americans renting, and many looking for an opportunity to be homeowners, investors can find great tenants to enter a lease option. Renters may not be able to qualify for a traditional loan, or perhaps they need to work on their credit score or save money to purchase a home. A lease options provides a slow, safe path to homeownership.

Now, if someone asks you if lease options are a good idea, either for investors or potential homeowners, you can offer a positive response. Lease options do not have to be predatory; they can be beneficial to everyone involved in the transaction. The current economy is the perfect time for the lease option.

We just had our annual wealth summit with over 700 people in attendance (almost 4 times as many people as last year). Many of our clients brought friends and family members to the event, introducing them to what most of them hope will help them re-build their retirements and build a future for their families.

This month’s issue of Newsweek contains an article, “The New Math for Retirement” and the tagline? “Financial advice you’ve gotten in the past may have been misguided and miscalculated (hmm…401(K) anyone?”)

The article then goes on…”There’s one key fact of life that most retirement planning advice gets wrong: the way people actually live and spend when they retire.” Imagine that?

When you stop working and retire, you still have to buy food, buy gas, pay utility bills, etc. What kind of retirement is that anyways? Bills? Responsibilities?! Doesn’t retirement mean sunshine, beaches, pina coladas, vacations and visors? Sure it does if you saved up a billion gajillion dollars and plan to stop contributing to mankind and experience personal growth and development. You don’t have a billion gajillion dollars and have about 5 years before retirement?

Well luckily, through REIC, some hard work and an “I-Can-Do-It!” attitude, we’ll help you every step of the way to help you achieve that financial liberation you need to become successful, not just financially but in every aspect of your life. Reading our blogs and watching the testimonials of others who have “made it” is a great first step.

Real estate is not an easy road, but we’ll be right there with you. So all you gotta do is just start walking! Visit our website and attend an event to learn more!



Kris shot this video so you could see all of the books that he had to sign.

There’s even buzz from the Beehive State.

Better known for its share of the Rocky Mountains, vividly colored plateau and canyon vistas, salt flats, Mormons, a bright, multilingual workforce and the likes of outlaw Butch Cassidy (Circleville), Donny and Marie Osmond (Ogden), Roseanne Barr (Salt Lake City), James Woods (Vernal), and Loretta Young (Salt Lake City), Utah is swiftly coming into it’s own as a hot housing habitat.

“We have been through a weak cycle that has affected all areas of the State of Utah. However, this year looks very promising,” Mark Watterson, from Keller Williams in Midvale, UT reported to the Realty Times Market Conditions Report.

How hot is it?

The 45th State to join the Union, Utah now ranks 35th in home appreciation, moving up fast, 15 spots from its dead last position a year ago, according to the just released Office of Federal Housing Enterprise Oversight’s First Quarter 2005 Home Price Index.

The index says the selling price of Utah homes rose 6.3 percent from the first quarter of 2004 to the same period this year. That’s only about half the national rate of increase, at 12.5 percent, but some Utah markets are much, much hotter.

The Utah Association of Realtors own first quarter report revealed Salt Lake County, the state’s largest real estate market, clocked an 8.09 percent increase in the average sale price of single-family detached homes, put at $204,311 in the first quarter this year, up from $189,013 in the first quarter 2004. During the first quarter this year, nearly 3,500 homes (single-family detached and condos) sold in the Salt Lake County market. Condo prices rose only 5.98 percent.

In smaller markets, some of them resort areas, first quarter prices truly skyrocketed.

According to the association, after Salt Lake County, the next largest markets and their quarterly sales (all homes), along with average price increases, were:

* Utah County, 1,015 home sales, house prices up more than 19 percent, condo prices up 15 percent.

* Washington County, 724 home sales, house prices up more than 21 percent, condos up more than 15 percent.

* Weber County, 690 home sales, house and condo prices both up nearly 18 percent.

* Davis County, 686 home sales, house prices up nearly 10 percent, condo prices up by more than 14 percent.

* Resort town Park City yielded more condo sales (184) than single-family home sales (140) and clocked a 15.5 percent increase in average condo prices and 19.3 percent for houses.

“Some experts feel that Utah is unvalued by 25 percent. I feel a 10 percent growth rate is extremely likely,” said Watterson.

“With all the out-of-state investors looking into Utah, it can only improve our appreciation over current levels. This is an exciting time as we watch our most important investment become more valuable. This is a great time to be in the game and not on the side lines,” Watterson advised buyers and sellers who’ve been waiting to move in, up or out.

Utah’s more affordable housing market is enjoying some housing market spill over from it’s booming neighbors.

“Utah real estate values have appreciated more solidly in recent months, a trend expected to pick up speed in 2005 and 2006. The reasons include more impressive economic growth and the fact that Utah real estate is again ‘bargain priced’ versus its neighbors,” said area economist Jeff Thredgold.

On it’s western border, Nevada currently has the nation’s fastest appreciating home prices, which rose more than 31 percent in the last year. The nation’s most populous state, California, just west of Nevada, is No. 2 on the OFHEO’s Home Price Index list with home price appreciation higher than 25 percent. To the south, Arizona enjoyed a 19.43 percent home price appreciation during the first quarter and ranks No. 7 in the nation on the OFHEO Home Price Index list.

However, Thredgold says Utah is leaving in the dust its first recession in 50 years (from 2002 to 2003) and can hold its own economically. The state is a mecca of academic and higher education institutions that produce a well-educated workforce and its pro-business climate attracts existing and start-up businesses in the technology, pharmaceutical and biomedicine fields, among others.

The state’s net job creation is second in the nation only to Nevada during the last 12-month period and the jobs aren’t just lower-paying service jobs, but employment gains in manufacturing, finance, trade, transportation, utilities, professional and business services and construction, as well as the leisure and hospitality sectors.

Unemployment is down to 4.6 percent from the nearly 6 percent two years ago, Thredgold reported.

“Utah is the 5th fastest growing state and the real estate market is showing it,” Mayra Sanchez Johnson of Prostar Realty reported to Realty Times’ Market Conditions Report.

“Prices are steadily rising and a well-maintained home will sell in less than 30 days. New housing is booming and there are offerings from condos and townhouses to starter homes and luxury homes at very affordable prices,” she added.