If you are reading this letter then you are interested in investing in real estate. Chances are you have purchased books, gone to seminars and enrolled in courses to teach you the "insider secrets of how to invest in real estate". Or maybe you are completely new to the idea and just wish to find your entry into what many experts believe is every person’s entry into the possibility of accumulating wealth outside of the fruits of your personal labor.
If you have already begun your real estate investing career and own investment property now chances are you've been disappointed. You're disappointed with what you experienced in reality when you stepped forward to try to actually use some of the techniques that you learned from your courses, books, tapes and CD's.
You know what I'm talking about:
Tenant's that don't pay rent;
Sellers that want way more for their real estate than any rational tenant would pay you to occupy;
Deferred maintenance;
Teaser rate mortgages with adjusting payments;
Advertising that doesn’t work;
Tenants that trash your property costing you more in damage than you will ever make back in aggregate gross rents, much less in cash flow;
Emergency maintenance calls in the middle of the night;
Lenders that say they will but really won’t;
The cost, trouble and emotional suffering of evictions;
Rabid competition for "good deals";
Tenants who say they will but they really won’t;
Poor performance by property managers;
Long term vacancies;
"Saving money" by managing properties yourself so you have a couple of hundred bucks more per month to help pay your mortgage debt for your not quite cash flowing investment only to see 20, 30, 40or more hours of your valuable time go up in smoke;
Believing that your property is "special" and finding out that when it comes time to sell the market may not think it's so special;
Leaks; roofs that leak, toilets that leak, sinks that leak, basements that leak; windows that leak; leaks;
Toxic mold;
Phase one environmental surveys;
Uninsured claims on title;
Rising property taxes without the ability to increase rents;
The Truth About Getting Rich With Real Estate Investing
Real estate investors have a large universe of opportunity. Some of the largest fortunes in the world are built on the strategy of owning and managing valuable real estate. This is true because real estate touches everything that we do. In a given day every person living on the earth will use or benefit from, directly or indirectly, many "properties".
Everyone lives on the land whether in shelter or no shelter. The land gives us our food. Products and services are produced from the land and inside buildings designed to shelter wealth creating activities. The sick are cared for in hospitals and clinics. Students are taught in school buildings. Scientists discover the secrets of nature in laboratories. Goods are stored and distributed in warehouses stores. Theaters, museums and galleries house and display culture and entertain us. Our houses of worship shelter our gatherings for spiritual work. Transit structures enable movement around the globe. Hotels and time share condominiums provide luxurious comforts in the paradisal settings of the world.
It is this characteristic of land, and in particular shelter, from which economic values of real estate are derived and this is where most real estate investors get it fundamentally wrong and either fail to make money or fail to make as much as they should with a lot less risk.
Human beings have constructed innumerable types and styles of shelter giving the real estate investor a vast canvas on which to paint their picture of wealth. Of the many choices the widest, deepest, most liquid market is that of residential housing. Because of this it is the best niche to work in to add value to the greatest number of families and individuals directly.
How can an investor add value to a family's use of their home? The answer is surprisingly simple: by helping them to become the homeowner.
If you are ready to light a fire under your real estate investment portfolio click here.
How Valuable Is Homeownership?
Well, there are numerous books and scholarly studies that have examined this question. I could fill several pages the length of this letter making the case. For most people it is intuitively obvious that homeownership is more valuable than renting but let me ask you to consider one case study done by the United States Federal Reserve Bank. You know, the bank that controls our nation's money supply.
In 2003, the Federal Reserve commissioned a study about the value of homeownership. They statistically compared financial characteristcs of demographically similar renters and homeowners. Specifically, they looked at the difference in net worth of individuals in these two groups.
Renters had an average net worth of approximately $5,000.00.
Homeowners had an average net worth of approximately $172,000.00.
Nearly 70% of households in the US enjoy homeownership. That means that over 30% do not. The number of estimated households in Washington State in 2000 was 2.3 million. That means there is a potential market of 690,000 in Washington State that might wish to own a home but are currently renting.
Insider Secrets of Real Estate Gurus Revealed
One of the well kept secrets of the real estate course industry is that the vast majority of people that buy the real estate courses will never buy real estate as an investment. If they do, it is unlikely that they will find in the marketplace what is described in their real estate courses. Now, don't get me wrong, much of what is taught by the various real estate coaches and gurus DOES have some sound advice derived from experience.
The problem is that they just don't tell the whole story.
So why is it that people who spend thousands and tens of thousands of dollars on investment education never take action to implement what they have learned?
It is because it is difficult to do so.
You see, to be successful at anything requires:
Study
Testing
Fortitude
Commitment
Resolve
Overcoming Failures
Learning
Courage
Time
Resources
Focused Attention
Discipline
Of course, if this is what you put in your headlines very few people would shell out $19.97, $59.97, $99.97 or $1,997.77 for whatever investing course of the week. I mean, would you buy something with a headline that read "To Be Successful With this Information You Must Work Hard, Study, Take Risks and Offer a Better Value Than Your Competition"?
Probably not.
While it is possible...and apparently some people have done so...to take a course, go to a seminar, read a book, listen to a tape and succeed immediately, it is rare.
Even worse, as a real estate broker I have listings with people right now who bought in the real estate boom of 2005-06 and are back peddling fast to exit out the door and sell because what they thought they heard or learned turned out to be quite different from the reality of their experience. They should have talked to me sooner.
Let me tell you something: It doesn't have to be difficult, expensive or mystifying to succeed as a real estate investor. Let's take a look at what Bill and Carol Spells of Tacoma, WA have to say about their experience with my real estate investment strategy:
"I am a foreman working on the docks unloading ships in the Tacoma area. My wife, Carol and I have been married 19 years. Carol used to be a real estate broker and owned her own office so she has a pretty good background in the real estate game. Between us we have several children and grandchildren and we help them when we can and would like to do more for them, if possible.
Right now, we pretty much depend on my income as a longshoreman and our investments and over the years we have invested in rental homes and other real estate. In fact, in the 1970’s and 80’s we owned a number of rental homes in the Tacoma area. We got so sick of dealing with tenants who always found a way to pay others first and us last, vacancies, bad checks, leaking toilets, roofs, etc. that finally we just chucked it all, sold the whole bunch and swore that we would never do it again...until you got in touch with us about your (real estate investment) program.
Looking back at our experience we realized that even though we had made some money we were doing it the way that everyone else told us we should do it…but that was all wrong! It seemed like it was either they win we lose or we win they lose. When you showed us your system we realized that it didn’t have to be that way at all. What was so amazing was that by changing our thinking and the tenant’s thinking about what we were doing that both parties could be so richly rewarded by giving each other what we really wanted.
What a great way to own real estate without all of the usual headaches. This system gives us the immediate cash flow that helps support us in our semi-retirement and a nice capital gain when the tenants exercise their option to purchase. Of course being skeptical because of the bad old days of owning real estate the old way we needed to see all of the details to be certain it was true. You gave us the details, including the risks involved, and it was true. I would certainly recommend this to anybody interested in real estate investing."
To find out more about how the Spells and our other investors have boosted their real estate invetsment portfolio click here now.
So why do all of these real estate gurus tell us that real estate is the best way to build real wealth outside of personal earnings?
Because it is true.
But, you say, how can you tell me about all of these problems that frankly scare me to death, keep me from moving ahead to become a real estate investor, then turn around and tell me that it is the best way for the average person to build wealth? How can you say that?
Because both pictures are true.
And, the prudent, successful investor gets all the experienced, credible, professional advice they can get...and uses it.
Your step ladder to success begins on the bottom rung...how you view the world.
The Two Types Of Real Estate Investors -- Which Type Are You?
In over 30 years of investing, developing, financing, leasing and brokering real estate I have had the opportunity to observe the best, the worst and the mediocre in real estate investing. Let me be straight with you, I have made most if not all of the mistakes that I now see more clearly when others make them. Some people have to learn the hard way I guess.
What I have observed is that successful investors have a strategy that they carry out in practice every day. Their strategy is based upon what I call the iron law of buying and selling. It goes something like this: "In order for a transaction to take place (buying and selling) both parties must profit."
In other words, successful investors evaluate their decisions every day according to a principle that in order for them to succeed they must look first to profit their counterpart in a transaction. Tenants are customers, not chattel of the landlord. Buildings must enable valuable activity, activity that creates new wealth and the land and building must perform as effectively in producing that wealth as does the best machine in the manufacturing process, the computer in the professional service or the family raising healthy, balanced children that is housed there. It must add value.
Profitable investing has much more to do with adding value than it does about prices.
These investors have a plan based upon sound economic principles and everything they do is measured against that plan. If a proposed action advances the plan, it is taken. If not, it is abandoned.
These are strategic investors.
They are building long term, sustainable investment property portfolios and are continually increasing their cash flow AND net worth in the value of their holdings.
The other type of investor is focused on tactics. You have heard them all: flipping houses, foreclosure sales, short sales, buying subject to, etc., etc., etc. They seek the thrill of exploiting information that “no one else has”. They look for distressed owners and move quickly to relieve the distress...sometimes with disastrous consequences. These investors can sometimes make money, it's true. But they are opportunists, seeking weak points or gaps in the market and exploiting them. They are not focused on adding value or looking first how to profit others in the transaction. Flash, dash, cash…trash
They are what I call opportunists.
What lives by the sword, dies by the sword.
See if you can tell the difference in the way that Glenn and Barbara Welsh of Tacoma, WA now view their real estate investing activities:
"Barbara and I are in our 50’s, married and have no children. We have both had good sales careers. I am a sales rep for industrial products and Barbara works for a large retail chain. We have enjoyed good income and from time to time purchased rental homes for investments. We had a few of them about 15 years ago and I guess we just got sick of property management, credit problems with tenants, fixing toilets, worrying about roofs, paying mortgage payments when our homes were vacant, you know, all the usual stuff. None of the real estate investment gurus I heard about back then wanted to talk about that very much. In any case, we sold most of them and vowed not to do it again.
That is, until we got your call about lease to own investing.
...Maybe time had gone along far enough that we no longer felt the pain that created the sense of urgency to be free of owning rental houses. Maybe through the fog of time we just remembered the good part about our investments, the fact that they did appreciate and we were able to sell at a profit. In fact, we had kept one rental home that now apparently has about $140,000 in equity. That’s a couple years worth of net earnings for us, so maybe it wasn’t so bad after all.
Still, we were somewhat skeptical when you just briefly walked us through over the phone but we were willing to listen. I have to admit, it sounded pretty good when we met. The way you were qualifying potential customers prior to accepting them into your program, the way that you worked with them for up to two years to improve their credit, the way you were working closely with mortgage lenders to keep close to them and get them qualified, the disciplined approach to buying, the way that your realtor associates worked hard to find and negotiate the right deals. The system appeared to be very well thought out and designed to address just about everything that could go wrong. Sure, you told me and I knew that we would still incur the risks of owning rental homes but as far as I could tell the way you were going about it lessened the risks considerably. What I really liked about it was that it put us and our tenants on the same side of the deal where we were both working to help each other achieve something we both really wanted. That’s cool.
Maybe that’s what gave us the confidence to go ahead. I still wanted to see the documents, meet the people, look at the numbers, etc. After all, I still remembered the “bad way” of owning rental houses. But you showed it all to me and it turned out pretty much the way you said it would and we made our first purchase. So far, so good.
Then I started thinking about my rental home with the big equity. It was doing all right, chunking along and it stayed rented most of the time but I finally figured out that I had too many eggs in that one basket and that it was a slow growing basket of eggs at that. I could sell that home and re-deploy the earnings in a tax deferred exchange into at least 3 other of your lease to own investments that would grow at many times the rate I had in that one home and with less risk! What a concept!
All I can say now is get me more. Anyone who doesn’t at least give this a serious look is nuts."
It's A Shame For You Not To Make Good Money---When These Real Estate Investors Do It So Easily
So which type are you, a strategic investor or an opportunist? What is your outlook for people with whom you do business, do you want to help them or is it all about you first? Are you building for long term success and immediate benefit or are you just trying to take advantage of some short term anomaly or someone's distress?
You can be a successful strategic investor and have most of the work and sweat done for you by competent, ethical professionals working with brand name companies. You will enjoy the advantages of transparency, professional experience and a well thought out strategic plan by which all actions are measured. You can join a team helping people who have experienced difficulty in their lives achieve something that is extremely valuable...home ownership...and who have committed to do what is necessary to keep up their end of the bargain. The financial rewards can be well above average and the satisfaction of helping others first speaks for itself. The letters on this page from our current investors speak even louder.
Let Max and Barbara A. of Fircrest, WA tell you their story:
"Since you asked I have written this letter to you about our connection with your real estate investors program. You know that Barbara and I have been retired for about 5-6 years. Before that we owned our manufacturing building in Fife that housed the company that I owned. Over the years I sold my company to my partners and retained some interest in the building that the company leased from us.
From time to time we also invested in some other real estate, a few houses, some land, something like that. We have always done pretty well with our investments but until we sold the business they never really had much positive cash flow during the time we held them. We benefited mostly from the rise in values which we collected when we sold. Sometimes we paid the tax on the capital gain which put a nick in our return.
In any event we had sold most of the real estate except for our homes in Fircrest, Yuma, WA, AZ and the manufacturing building when you told us about what you were doing. Even though you have been a good friend and advisor for years being the businessman that I am I wanted to see all the details.
I was very pleased when you gave them to me. I have not seen any other real estate investment opportunities that offered strong current cash flow as well as a nice capital gain if the tenant buys the home. Actually for retired people like us it is an excellent method to collect the coupons on our invested funds without giving up on the price appreciation aspect that had always come through for us in the past. Sure, there are some risks but we always had risks when we owned our other properties and it seems to us that your systems for qualifying people and working with them to improve their credit so that they can borrow when the time comes would seem to mitigate those risks a lot.
...We like what you have put together and will be purchasing several of these through your realtors. I think anyone else interested in cash flow, appreciation and tax savings should take a look too. Thanks."
Give Back What They Deserve
Well, it's nice to hear what our investors say but what about some of our tenant/purchaser clients? Have a look:
"...I was very excited when I learned of your rent to own houses program. I felt that this was just what I needed. You were careful to explain everything and I understood. I felt that you were a man I could trust. We looked at many, many houses with your realtor until we found the right one. If I stay careful, Veronica can still remain at home with the children while I work. I don’t need a lot of cash to do this. My children will now learn what it is like to live in their own home and this will help them to be successful." Angelo and Veronica Torres
"...When we met with you for the first time in person we were impressed. You took the time to explain everything in detail including all of the costs and fees. We read all of the materials and contracts and talked about it. Then, we started to get really excited because we could see that you had a real plan to help us. Once we wrote the check for the consulting fee things got started right away. Everyone we worked with on your team…our team…of credit counselors, lenders, realtors,etc., were very professional and helpful. Getting all of that advice built our confidence that we really could do this and become a homeowner within two years or sooner in a home that we could pick. Your realtor showed us a number of homes and we found one that was just right for us.
So, here we are now, at the end of the trail, ready to move in. I am so happy to be closer to my children. Natalie and I are looking forward to settling in and making it our home, not just plunking down in someone else’s investment property. Things happened just the way you explained to us at the beginning. I guess I shouldn’t say that this is the end of the trail because we really look forward to continuing to work with you to qualify for own mortgage loan and take title. This may really be just the beginning." Devon and Natalie Hines
"...It was a great experience to work with you right from the very beginning. You did everything you said you would and stuck with it for what eventually took several months but we finally arrived. We love the house your realtor was able to find. The rent is what you said it would be in the beginning and so are the option terms. Debbie and I are motivated beyond belief to do what we need to do to get title to the home in our name. I’ll work all the overtime I can get and we have been working with your credit counseling team to get right to work on that problem. It’s a beautiful thing to have what you called our blueprint to success to become a homeowner. I never realized how important it was to just have a plan to get where you want to be and knowledgeable help to get us through what we don’t know." Ray and Debbie Kerschner
"...Your lease to own homes program offered me a great way to bridge from being just a tenant to a homeowner today. Yes, in under ten months from the beginning of my lease I was able to improve my credit and qualify to purchase my home from your investor. I couldn’t be happier." Tamara S.
"...Our goal is to use this program to set our future. We were given a chance to prove we are credit worthy. I would like to give someone else that chance one day. I want to be the person that your office can come to when you are looking for an investor. I think this program is an excellent way to rebuild a payment history, settle a family into a home of their choosing and offer a big step into re-establishing the personal pride of home ownership for someone who did not think they could own a home." Lee and Tanya Harper
"...Bottom line, we are now in our home, we know what the deal is, it looks possible that when we re-finance to acquire title from the investor that the value of our home will be at least equal to or greater than what our acquisition cost will be. We are committed to do our part and look forward to improving our credit. That is going to feel really good. Our investor/landlord seems like a really nice guy. We are working with him to do some improvements that we would like to do to our home. What a difference from just three months ago.
I don’t know what we could have done that would have been better for us. I guess maybe we are even still a little skeptical, even after it all happened the way you said it would. Maybe it is hard to believe that a program like this really can be good for everyone involved. It just seems like in the past we had to lose and everyone else was winning…at our expense.
So, if I haven’t said it before, let me say Thank You…a non-skeptical, heart-felt thank you. We would recommend the program to anyone else in a similar situation." J & R Meadows
"...When we found your program on a Sunday we called right away because it sounded so different. We began to hope that you might really have a way to help us get a home, a way that fit our circumstances best. We wanted to meet with you right then but couldn’t see you until Monday. When we did meet you explained the program to us in detail.
We found out that there were some fees and costs that we would have to pay but when you told us what they were for it sounded like something that would really us improve our credit and get a home of our choice right now. When you finished we wanted to start right away but we didn’t bring our checkbook with us. Robert returned the next day to write the check and get going. It was actually hard to believe that anyone would offer us a deal like this." Nicole and Robert Leszweski
"...When I talked to you I could not believe that anyone would help us like that. I wanted to do it but Montak would not agree. We went away. We talked about it for two weeks. I wanted to do it very badly and Montak said yes.
I gave you the money. Your realtor showed us the houses. We picked one. You made an offer. You needed more money to make payment and Montak agreed to help pay. Montak will work at her job and start a business in our home doing hair styling and nails to make more money to help pay.
We are very happy. You did a good job. We will tell our friends at church that you helped us. Thank you." Somyos and Montak Suksanguan
"...During the home search time with our realtor I called her about every other day to see how things were going because, well, we had never bought a home before and I just didn’t really know what to expect I guess, even though she explained it to me a couple of times. I just needed some re-assurance that things were OK. I was really glad when we found the home. I could tell it was the right one, even though our oldest daughter was lobbying for a different neighborhood.
But then it started to sink in that this was really happening. I was finally going to have a yard for the girls to play in where I wouldn’t need to worry about them. Each girl was going to get her own room. They have already picked out their colors. They can all walk to school from our house. There are parks and walking paths nearby. Every store or service is within 10 minutes. They can stay close to all of their old friends and I am sure will be making many new ones. I have some plans to remodel my kitchen…my kitchen… and Terry is gurgling about his garage-shop. The dogs and cats will have their own places too, the whole family.
I mean we signed the consulting agreement with you just three weeks before and now we are moving into our new home. I can’t hardly believe it. I am still nervous I guess, but we have always found a way to make it before. Now, we are making it in our home. I am really looking forward to cleaning up our credit and getting our own mortgage to take title to the home ourselves. I am thankful that we have your help and the help of everyone else on the team…our team.
Thank you so much. Everyone has been great. I have already told two of my friends that they need to look into this. It works for us." Terrence Lindsey and Jennifer Rogers
"...As I said I could see from the inside out that your way of doing business did truly help people become homeowners so I thought why can’t I benefit from this program as well? So I became one of your tenant-optionor clients too! Ironic? Or just a smart move? I think it is the latter.
Your investor closed on a home that I chose. I am really happy with the payment terms and the option price. Of course I know all of the details and how everything works and I love my new home! I am already making plans to improve it and working toward qualifying for my loan to purchase it as soon as possible. I am happy that the investor will make money because I know what he has done to go out of his way to help me.
I am also quite willing to recommend this to anyone else who wants the same benefits that I am getting. That is for sure because I have already brought 2 other clients into the program to find them homes! I guess you could say that I am an evangelist... " Anne Fredenberg
To Men And Women Who Want To Quit Work Someday
A key ingredient in any strategic plan is to begin with the end in mind. Our plan does not rely on exploitation of gaps in the market or constantly wasting effort and time cruising for distress opportunities. Our plan offers investors ample profits for helping other people achieve something that is extremely valuable to them and for which they are highly motivated to acquire. We pay careful attention to the details of the buying and selling so you don't have to. You receive the raw data of the facts used in our decision making process and the benefit of perspective from a team of qualified professionals. And, many of our team members are investors themselves.
We have a limited number of memberships in our group of investors available. If you are interested in applying to work with us as a real estate investor, please fill out the information below and we will contact you. We are looking for capable, mature individuals that exercise sound judgment based upon the best information available. We are looking for good people.
The information you will receive about our program is free and without obligation.
Currently, our operations are focused on WashingtonState. You do not need to be a resident of WashingtonState to purchase real estate investments here. If your cash is tied up in other investments but you have commercial or residential properties with equity our team of licensed professionals can provide you with loans featuring low rates and fees against those equities for down payments. We have a program for real estate investing through your self-directed IRA accounts or individual 401ks.
Strategic real estate investing is not for everyone...only those that want to enjoy solid earnings and optimal risk reduction strategies. If you are not serious about succeeding with your real estate investing, please do not leave your contact information. I value my time and yours and want to spend mine structuring profitable real estate buying selling for serious, well intentioned people.
If you are capable and serious we would welcome you to our team. Please fill out the form below now. ( * indicates a required field)