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REIC Global Review

2012 January 25

REIC Global Reviews - They find the homes!

REIC Global Reviews – My Story

I came across REIC Global when a friend lent me Kris Krohn’s book The Straight Path to Real Estate Wealth. For the whole story, click here for the Straight Path Review Post . I found the book innovative and exciting, it was something that I could do now. I did, and it is working out beyond my expectations. With a little research on their website, I discovered that REIC Global is more than just a real estate education. Not only do they offer Hands on Coaching, but they also, help you locate your deals and walk you through the process. In no time, you will become a seasoned investor and on your way to very quickly building your own mini empire.

But the fact that they are offering more that education is huge. It’s a big divergence from Robert Kiyosaki’s (author of Rich Dad, Poor Dad), and several other schools of thought or training seminars out there that offer intensive training seminars for $3,000 to $25,000 +.  But at the end of the day, you come out of those places with some great education, but really it us up to you to get started. This is where REIC Global offers a unique value: They give you all the education, then they hold you by the hand, find you a great deal that cash flows, and then walk you through the process….They do this on every home that you purchase until you tell them to go away. It really helps assure that you don’t lose your way or fizzle out in your endeavor.

But what I like about their program is that they go one step further, They will build you a thorough 10-year plan (or five or 15 if you want) and show you how using their system and their company you can retire from your job in 5-10 years as a full-time real estate investor and millionaire. For a one-time fee, this is an incredible deal for both the aspiring real estate investor and the novice who is looking for other options than the traditional 401k or other retirement plans that are getting slaughtered in today’s economy.

REIC Global Reviews What You get for Your Club Membership

One thing I wasn’t crazy about was their organization used to be a club that you could join. For legal reasons, they have removed club membership and now offer what they call a Lifetime Services Contract, which for your entire life entitles you to the following for a one-time fee of $12,500:

  1. Full access to all of the educational materials you could dream of including live seminars and home tours in the markets where they are most active.
  2. Your own personal coach who is there for you 24-7. All of the coaches are also investors and practitioners of the plan.
  3. A mega machine using economies of scale to bring to you the lowest priced real estate deals in the country.
  4. Guidance and services on getting loans (if you are going the leveraging route) and positioning yourself to grow your mini real estate empire.
  5. Wealth management and protection services….you will need this when you are making your millions.

Basically, it is the same as what they offered in there club membership. But overall it is a bit more of an arm’s length approach.

From a return standpoint, you are going to do very well. You can typically expect a 13% to 15% cash on cash return when leveraging (putting down 20% and getting a bank loan on the rest), and 9% to 12% for all cash purchases. This far exceeds most stocks, IRA accounts, 401k’s and the like by a long shot. And that doesn’t take into account the additional return you will get when the market value of the homes comes back or when you will be able to cash in on the equity you have by buying those homes as a discount.

The cost to get started is obviously going to be prohibitive to a lot of investors. But you will likely earn it back on your first deal and many times over after that. If a newby wants to get started and doesn’t have the upfront money, they can piggy back off another member until they can afford their own, or they can get involved in the Strongbrook Program as a way of earning extra cash to go toward their own membership. I hope this REIC Global Review was helpful, I’ll have more to say on how to get started if you don’t have the money.

The Straight Path Real Estate System Review

2012 January 5

Perhaps you have recently heard about Kris Krohn or read his book, The Straight Path to Real Estate Wealth. A friend lent me the book in 2011 after talking about ways we could make the jump from a typical wage earner to financial independence. Not a huge fan of gimmicks, I was a bit turned off by the title, yet intrigued that someone so young had become so successful, especially during the down economy.

I got my start as a commercial real estate appraiser. I understand the ins and outs of investing, and had just been looking for the opportunity to make my move. I was certain that I could pick out a legitimate recipe for success vs. a mediocre, unproven plan peddled by an excellent sales person.

Off the bat, several things jumped out at me:

  •  The book was free in hard copy format. After reading my friend’s copy, I immediately went online and ordered my own copy. I must have been one of the last people to get a free hard copy, because I learned soon after that you know had to pay for hard copies (the e-book in PDF format is still free click here to download one). . Honestly, this made me feel a bit better. I think a company needs to sell their product in order to be taken seriously. But on the other hand, a free book does help to support REIC’s effort to sell itself as an altruistically centered endeavor.
  •   Kris Krohn takes an old idea and puts a new twist on it. He outlines the benefit of the less used, but still common rent-to-own approach and comes up with a unique, creative method that creates six different ways to profit. At the end of the day you have a workable compromise in the “fix ‘n flip” vs. “buy and hold” debate.
  •   The last thing that jumped out at me was Kris’s effort to broaden the understanding of the reader. I think he makes a fair point: Putting all of your trust in the stock market or 401k’s…could be writing your retirement’s death warrant. When compared to how well a person can do following the 10 year game plan proposed by REIC Global, it makes traditional investing look ludicrous.

At the end of the day, I give the book two thumbs up. I followed the Kris Krohn compassionate financing model and scoured my market for a the ideal home. As soon as I had a clear idea of what to look for, I was able to locate the right investment property within two weeks. After escrow closed, I found an ideal tenant within three weeks. Thanks to Kris Krohn’s book I’m now sitting on great equity, have cash flow of over $700/month and have a buyer to purchase the property at market value within the next 18 months.

The Five Profit Centers of the Straight Path to Real Estate

2012 January 4

There are five main ways to make money using the Straight Path to Real Estate developed by Kris Krohn of REIC Global.  The first way is called bargain equity which is purchasing the home for at least a 15% or more below market value.  Depending on the amount of equity you buy into initially you can stand to make tens of thousands of dollars in the future.  This is one of the most important strategies if you want to profit in real estate.

The second opportunity that we learn from this investing club is cash flow.  This is the amount of money you make from your tenant after you pay for your mortgage, taxes, and insurance.  If you buy your piece of real estate at a deep discount in the beginning and you research what rental rates are, it is typical to get  anywhere from $150-$750 per month in cash flow on your investment.

The third profit center that REIC Global and Kris Krohn teach about “compassionate financing” or “option consideration.”  This is giving the renter the opportunity to purchase the property within a certain time period.  This requires a $5,000 down payment on average which is non refundable.

Appreciation is the forth profit center specified by Kris.  Appreciation is when your home increases in value over time.  When you buy your investment property in the beginning well below its actual value you stand to gain even more as your property increases in value over time.

Tax benefits is the fifth and final opportunity for gain in real estate.  Most homeowners are able to deduct their mortgage interest from their taxes.  It’s important to consult with your own tax professional regarding your deductions.  Not only are there great tax advantages to owning a rental property but you can usually count on appreciation as well.

So there you have the five profit centers of the Straight Path to real estate that were developed by Kris Krohn.  We hope that this REIC Global review was helpful so you can learn how to make money with real estate.