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.

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.

I cornered Kris Krohn and told him that I’d expected to find more negative experiences, considering how much he talks about real estate being a tough industry (especially considering the current market) and the emotional connection we all have with money. Having some irate customers seems to be one of those things that comes from doing business, just part of the deal. But REIC seems to have very few members who aren’t happy with us. Kris explained that we don’t have many unhappy members because we work so hard to make sure they understand the risks and don’t make them walk the minefield themselves. We’re always there to help you through the tough parts.

Another thing that I’ve learned as I talk to the people here is that REIC’s program is designed to benefit the company when our members succeed. It’s in our best interest to make sure your real estate investment portfolio is growing and doing well. That means we work hard to make sure our members are happy because that means we’ll be happy too. We all win together.

“You can choose to lead, or not. You can choose to have faith, or not. You can choose to contribute to the tribe, or not.

 “Are there thousands of reasons why you, of all people, aren’t the right one to lead? Why you don’t have the resources or the authority or the genes or the momentum to lead? Probably. So what? You still get to make the choice.”

 —Seth Godin, “Tribes: We Need You to Lead Us,” p. 146

 Are you looking for a good leadership book to read to start the New Year? This is a good one; better than I thought it would be. If you have ever attended one of the Prosperity Summits co-sponsored by REIC, you may remember how many times Garrett White said the word “tribe.” When I attended my first Prosperity Summit, Garrett probably said the word “tribe” at last twenty times. Because he said it so many times, I became curious about 1) what a tribe is, 2) how to create one myself, 3) how to become a tribe member, and 4) what the big deal is.

Garrett read this book and began to understand the power of a tribe. I read this book and began to understand the power of a tribe. You will, too.

What do tribes have to do with real estate? In a word, nothing. But that’s not important. The way tribes tie into what we do here at REIC is this: when you have extra income produced by real estate, you have extra time; if you have extra time you can help the world by living your soul purpose. Those you affect, help, work with, lead, etc. while living your soul purpose are your tribe. Real estate is the tool used to finance your soul purpose so you can build a tribe.

Make the choice to read this book this year. It can change your perspective on many different topics. The year is fresh; opportunities to lead a tribe abound. Don’t let the year slip by without doing something great!

If you are interested in reading my full book review, click here.

My book review for this month is A New Earth: Awakening to Your Life’s Purpose by Eckhart Tolle. Click on the title to read the full review.

After reading my review, I’m sure it’s obvious that I liked it—a lot. But many of our blog readers may be wondering why reading a self-help book will help them invest in real estate. Allow me to run a few ideas by you.

I’m guessing that you are investing in real estate, or are interested in investing in real estate because you want more out of life—more wealth, prosperity, time for family and friends, and a thousand other reasons. If you are not investing in real estate yet, you may be looking onto REIC to see if you want to play the Strait Path game with us. In either case, chances are that you aren’t in the financial position you’d like to be for a reason. Most reasons have something to do with your mindset.

Reading A New Earth could be your first step in beginning to look at the way you see yourself, life, your lifestyle, your paradigms, etc. Tolle has an interesting way of explaining how our minds (specifically our egos) succeed at ruining our hopes, wishes, dreams, goals, and the good things in life that make living fun and interesting. From our relationships to our bank accounts, our egos have a huge amount of control over what we manifest, or fail to manifest, in our lives. The ego is our enemy. Tolle shows his readers how to quiet the ego so they can begin to manifest what they want.

After reading the book, chime in. Let me know what you think.

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.

Today being Friday and all, I thought I would surf through news websites to see if anything interesting was going on in real estate news. As it turns out, I found an interesting nugget written by Alan Zibel from the Wall Street Journal. The article is titled, Home Prices Decline in Nearly Half of Metropolitan Areas.

The point Zibel makes in the article is that median home prices are still falling all across America. Home prices fell in 76 out of the 155 (or about half) areas that are tracked by the National Organization of Realtors. These numbers are for the third quarter 2010.

The reason? The government tax credit that was provided to mostly first-time home-buyers ended, so fewer people are willing to buy a home. Also, because multiple banks had fraudulently filed foreclosure documents on a huge number of homes, the investigation process has deterred would-be foreclosed property buyers.

This is good because it means that the real estate market is still producing great real estate deals for REIC clients and investors. When banks figure out their foreclosure problems, foreclosure numbers are expected to rise. This means that REIC will be able to keep providing inventory for their Strait Path, Strait Path Outright, and Strait Path Accelerate programs.

“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.

“What you have to realize is that a mentality of growth is the only way you’re going to stay in business and find your freedom. To get out of the chaos and find your freedom, you have to grow, period…When it comes right down to it, you don’t really have a choice; if you don’t grow, you will die. Business is dynamic. It is not static. Every day, your business is going to change, and there’s nothing you can do about it. The belief that somehow you can maintain your status quo is false.”

—Clate Mask and Scott Martineau, Conquer the Chaos: How to Grow a Successful Small Business without Going Crazy, p. 48

Making constant progress is not only important in business, it is important in all aspects of life.

When our clients buy a membership and begin working with us, we tell them that we are going to help them develop a customized 10-year investing game plan that will net them about $2.5 million by the end of the tenth year. Our members are excited by that prospect and are ready to go as soon as they are officially REIC members. They love the coaching process and their coaches, and they graduate from the program having transacted some form of real estate. If all goes well, this takes place within the first six months of being members.

So what happens next?

A lot of people, because of human nature, begin to lose contact with their 10-year goal as soon as they lose contact with their coach. After making a lot of progress, both financially and with their investor mindset training, their focus wanes and they get off track. This can cause problems in the long run.

Small and Simple

Progress does not have to come in huge leaps. Progress is still progress in small amounts, too. There are hundreds of things you can do to keep progressing while you gear up to transact your next piece of real estate.

1. Read a good book: Good books can be found all over the place. They can be about business, self-help topics, or even spirituality. Need help with titles? I can give you five off the top of my head. If you don’t like to read, a huge number of books released in the past ten years have also been released as an audio book. Purchase these books to start building your personal library, or find them at your local library.
2. Find a coach or mentor: Kris is very passionate about finding a mentor to help you take yourself to the next level in any area of your life. Who qualifies as a mentor? Locate an individual that is at the top of their field and ask them to coach you. They may or may not require payment. If they do, remember that you are worth every penny. Use their insight as fuel for growth.
3. Meditate on your goals: There is power in meditation. Tap into your personal energy to create great things. Think about what you would like to accomplish. Focus your mental energies on those goals and visualize yourself attaining them. Feel the awesome sense of accomplishing those goals. Then go to work.

 Do not allow yourself to stagnate. There is no such thing as “hanging out” in life or in business. If you are not pro-gressing, you are di-gressing.

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.”

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!