Archive for Real Estate

Jordan Eyre’s Basement Apartment Adventures

Jul 27 | by Josie | Meet the team, Real Estate
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A little bit about Jordan:

Jordan works as one of our consultants and helps to educate individuals who are interested in REIC. He’s passionate about the REIC  and is a successful product of the Strait Path System.  As an early 20’s newlywed and a very recent homeowner, Jordan is on his way to purchasing more homes and building his wealth through real estate. Below, Jordan wanted to share his rental renovations on his basement apartment.

“As you may know, I did a little work on the basement apartment in my house before renting it out. It was pretty trashed before, pink counter tops, greasy cupboards, and a grimy, broken stove.”

jordan before1 300x225 Jordan Eyres Basement Apartment Adventures

A month of long evenings and about $600 later, I moved someone in and am collecting $800/mo! Pretty good deal, if I do say so!

jordan after Jordan Eyres Basement Apartment Adventures

Different methods of investing

Jun 14 | by CGraham | REIC Insider, Real Estate
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The Six Elements of Successful Investing: various Methods compared and contrastedhttp://www.best-investing-guide.com/best-investing-guide-pic.jpg

I put more than $15,000 and hundreds of hours of work into my first property. I eventually sold it, making a $54,000 profit. My second property required $6,000 of repairs and about sixty hours of work, and I made over $100,000 upon selling. I never set foot on nor did I put a penny into my third property, which I sold for a $20,000 profit. Which deal yielded me the greatest return?

Even though my second deal made me $100,000, it still required a lot of time and money. My third property was the winner because it only took a few hours of my time and no money.

Profit is just one aspect to consider when you’re seeking the best way to invest. Granted, it’s a vital factor, yet far too many people consider it to be the most important, which leads to faulty decisions. There are actually six elements of successful investing, all of which must be considered with every deal, every system, and every strategy in order to make wise investment decisions.

Service to Tenants and the community

Jun 2 | by CGraham | Real Estate, Strait Path Real Estate, lease option
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http://www.pre.nl/image/ServiceSign.jpg

The best part of Compassionate Financing is that it provides tenants huge benefits that they cannot get in any other way.

While it frees you from having to repair toilets, it gives tenants the opportunity to make improvements and feel as if they’re really creating a home environment, which is difficult for renters to achieve. Tenants have the feeling of control and ownership while they are buying time to improve their credit.

They can build equity much faster than they can with conventional financing. They can acquire seasoned loans since they are living in the home before purchasing it. They can take advantage of the opportunity of home owner- ship with a relatively small amount of money.

And with our system, it’s almost a guarantee that they will, in fact, be able to purchase the home. Furthermore, we encourage investors to give tenants an equity bonus when they purchase the home.

You’ll find all the details on the Compassionate Financing system in chapter seven.

Keys to compassionate financing

  • By giving tenants the opportunity to purchase a home, you relieve yourself of the burden of property maintenance, decrease your risk, and increase your profits.
  • You eliminate the predatory nature of lease options, as well as the risk of lost appreciation by using better contracts than standard contracts.
  • You help tenants purchase homes. It serves them better and makes you more profit in the long run.
  • Compassionate Financing gives tenants substantial benefits, such as the ability to make home improvements, time to improve their credit, and the opportunity to build equity. In exchange for these benefits, they are willing to pay more up front, as well as on a monthly basis.
  • Once you’ve gone through the four-phase Strait Path process (plan, find, purchase, serve) with one home, things really start to get exciting, since your success builds exponentially. The more properties you buy, the more you’re able to buy. One home can easily become many over time. Once you purchase a home at a discount and it generates profits, you can leverage those profits and the accumulated equity to purchase another property, and another and another. This is what we refer to as “achieving critical mass,” which is detailed in chapter eight.

Taking advantage of the now

May 20 | by CGraham | Discount Equity, Interest Rates, Mortgages, Real Estate, lease option
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Here’s what’s happening in our market and why real estate makes sense.

An excerpt from Michael Masterson’s Journal:

Taking advantage of real estate prices that are as low as they’ve been in 20 or 30 years

It is impossible (and foolish) to try to predict the bottom (or top) of this (or any) market. But, by any measure, we have just gone through one of the biggest real estate recessions in the history of the United States.

In South Florida, for example, you can find properties for less than half of what they were selling for at the peak of the market. More important, you can buy these properties with 20% down and start enjoying positive cash flow from month one. (Four and five years ago, you couldn’t get positive cash flow out of rental units with 50% down.) So today’s prices make sense from a businessman’s perspective.

My real estate partner Peter and I have been buying homes in the $120,000 to $130,000 range (after closing costs and renovations). We are getting monthly rents of $1,300 to $1,600 on these. I am financing our deals at 4% (which is good for me). At that rate, we are making about 6% to 8% on our money, not counting appreciation.

My brother is buying up residential properties and apartment complexes in lively downtown areas, beach areas, and areas targeted for “stimulus money” renovation. He is buying at such deep cash flow prices that he is able to pay his investors (including me) minimum guaranteed yields of 7.5% plus equity participation. Because of this, he has raised a considerable amount of money in the last few months, and he is using the money to do some very impressive deals.

He just bought a 14-unit building across the street from the beach for $725,000! Think of that. Each beach-view, one-bedroom unit cost him only about $50,000 — and this apartment complex could be worth several million in the not-too-distant future. He also now controls three properties in the heart of a rapidly growing downtown, zoned commercial and residential. And even though they’re in a prime spot, he is generating yields of over 8%.

Whether with Peter, through my brother, or by myself, I will continue to invest in real estate so long as prices are low. If they go down further, I’ll buy more aggressively. I have no risk of losing money, because all the properties I’m investing in are making money on a monthly basis. Even if rents drop, I won’t be losing money. The 4% to 8% yield I’m enjoying will cover me even if rents go down another 25%, which is highly unlikely.

I get immediate income from these deals. Instead of getting 0% on my cash, I’m getting a minimum of 7.5% fully secured guaranteed yields by loaning it to my brother, and additional yield from the “after-debt” cash flow.

But the real opportunity is in the appreciation potential. As I said, I fully expect to make an extra $10 million in appreciation in the next five to 10 years as inflation pushes up real estate prices. I might make as much as $30 million, but I’m trying to be conservative.

There are some who say that real estate prices won’t inflate with the rest of the economy, but I think they will. Here’s why. Buildings are built with core commodities… lumber, copper, aluminum, concrete, steel. Labor is another big expense. You can’t have inflation without a rise in those costs.

Plus, as my brother points out, properties in many areas are selling for less than replacement value. In some cases, even if you got the land for free, you couldn’t build these homes for what you can buy them for today. That’s even after taking depreciation into account.

Last but not least, in many instances, it’s already far cheaper to buy than it is to rent. Eventually, this will turn the tide toward buying. It’s just a matter of time.

So that’s my first inflation-beating recommendation: Start buying undervalued, quality rental properties now. Don’t wait for the market to bottom. Just find properties that will give you a net cash flow of at least 4% to 9% after all expenses (including property taxes, maintenance, fees, etc.).

Kris Krohn Featured on the Authentic Entrepreneur TV Channel

May 18 | by CGraham | Real Estate, Some food for thought
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Kris Krohn talks with Garrett White about the power of non-atttachment and sales. Watch the video below:

Kris Krohn Signing Books

May 6 | by CGraham | Announcements, In the news, REIC Insider, Real Estate
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Kris Krohn’s new book, The Strait Path to Real Estate Wealth, just arrived on yesterday. We received 1000 copies for the 2010 Annual Wealth Summit.

DSC 0059 300x200 Kris Krohn Signing Books

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

Utah Gallops Into Housing Boom

May 5 | by CGraham | Announcements, In the news, Interest Rates, Meet the team, Real Estate
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2002 10 01 Oct Reserve Bank contemplates housing bubble 540 Utah Gallops Into Housing Boom Talk about a national housing boom.

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.

Interview on Real Estate in Focus

Apr 27 | by CGraham | Announcements, In the news, Real Estate, Testimonials
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Kris Krohn’s interview on Real Estate in Focus, this past Saturday, is now available online. It was a very positive interview, taking up the entire hour. Kris did an excellent job promoting his book and REIC Global.

Real Estate in Focus airs on the Access Radio Network, which is broadcast to 21 radio stations, nationwide.

You can listen to it below:

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All About REO’s

Apr 22 | by CGraham | Discount Equity, Mortgages, Real Estate
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We know you’ve heard all about REO’s. You know that “90% discounts” you hear on the radio and see all over our videos, websites, seminar presentations and blog posts. Well, last week, in MSNBC.com’s Real Estate section, there was article all about REO’s. Check this out from the article:a23639c5f5d24140a91db16726cb50d8 All About REOs

“The number of homes entering REO status (short for “real estate owned” by a bank) climbed 35% to 257,944 — the highest quarterly total ever — from 190,543 in the first quarter of last year and 9% from the previous quarter, according to real-estate data firm RealtyTrac.”

Pretty interesting stuff. But the more interesting part, is about how many REO’s the banks have and how many are available on the MLS. Keep reading!

“Just how many foreclosures move through the foreclosure process and when banks sell them will be key factors in how much more real-estate prices could fall before they recover.

Most of these bank-owned properties are not making it onto multiple listing services, analysts and brokers say, despite banks having more of them to contend with.

“We have about 860,000 REOs in our database, and only about 30% of them are available for sale on the MLS,” Sharga says. “That means you have another 550,000 to 600,000 that have yet to hit the market.”

So if banks have all of these REO’s and are selling only 30% of them and have very limited time to get the toxic assets off of their books, how do they get rid of them? These aren’t available to the general public. But that’s where our “90% discounts” come in to play. Come to an REIC seminar to learn more about how REIC is participating in purchasing the 550,000 to 600,000 homes that have yet to hit the market.

Spotlight on Ben Wilson

Apr 7 | by NKrohn | REIC Testimonials, Real Estate, Testimonials
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How did you hear about REIC/how did you get involved?

How we got involved in REIC is a pretty good story. My wife and I were in the market for buying our first home. We visited a home we were interested in, then went to a nearby park to let our toddler play and get a better feel for the neighborhood. While we were at the park, another young couple with a girl the same age as our own came to the park to play. I approached them to ask about the neighborhood and how they liked living there. They said that they didn’t live there either, but were just visiting friends. The man wondered why we asked, so I told him about our house hunt. We started talking about real estate, then real estate investing. He said there was a better way, and told us about REIC. Duncan Peterson invited us to visit one of the seminars. We liked what we heard and made the investment.

How has your experience been with the coaching program and actually doing real estate?

We haven’t done any real estate yet. We did invest in the Alpha REO pool. I think that our coach is still Trent Rogers. We had some meetings with him several months back as we tried to free up some capitol with investment condos we own, but the ball was left in our court as we figured out what to do. Since then we’ve tried to sell and/or refi our condos without any success, so we may be stuck renting them out for the time being. Perhaps when the market warms up again we’ll try to sell once more.

Why do you think that people should get involved with REIC?

#1 reason: REIC is made up of great people. Everyone that I’ve ever spoken with in the company is open and honest, cares about you, knows what they’re doing, and loves what they do. Its great to work with people like that. Whenever I leave the REIC office I feel uplifted. Now put on top of that the great investment opportunities, and there is no reason for people not to get involved with REIC.

How is REIC helping you accomplish your life goals?

We hope that the Alpha investment will pay off in the long term. Other than that, we’re hoping to eventually be at the point where we can do our first lease option investment in the coming few years. From there, we hope to accelerate our earnings. We still need to figure out our long term goals more concretely, but right now we’re just saving for a comfortable retirement – one where we’re not dependent on anyone else (including the government) for an income, one where we have month to month discretionary income, and one where we have the resources to bless other people’s lives.

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