Transcription
CONTENTS“THE SECRET GURU’S HIDE FROM YOU.” . 3THE TRAP . 5TURNING YOUR HOME INTO A CREDIT CARD . 7INSIDER SECRETS . 9ALL ABOUT REITS . 11Copyright Recession Profit Secrets (2020-)All rights reservedNo parts of this e-book may be forwarded or reproduced in any format, includingprintouts, electronics, photocopies, scans, mechanic, or via recording withoutwritten consent from the publisher.DisclaimerELITE MEMBER INSIDER SERIESTHE HIDDEN LOOPHOLE OF INVESTING IN REAL ESTATE WITH LIMITED FUNDS2
“THE SECRET GURU’S HIDE FROM YOU.”Save A Trip To The Movies – Buy This Instead.By this point in our lives, we understand the importance of investing and passiveincome. We see the influencers all over social media talking about getting rich quickschemes, courses, or other "opportunities."And then we have the one investment vehicle that gets much attention, but for goodreasons - Real Estate. Some studies have even proven that 90% of all millionaires holdsome form of real estate assets in their portfolios.Over the past decade, more and more tv shows on rehabbing and flipping homeshave emerged and caught the attention of millions of people all across the world.And unlike those other opportunities, the benefits and results of investing in realestate speak for itself.It's a straightforward concept at its core. Things can get a little complicated when itcomes to choosing which method or strategies would work the best for you and yoursituation or goals.ELITE MEMBER INSIDER SERIESTHE HIDDEN LOOPHOLE OF INVESTING IN REAL ESTATE WITH LIMITED FUNDS3
And this is where the majority of speculators exit the game. The six-figure profits reelthem in, but then when they find out that in some cases it takes six-figures to makethose kinds of financial returns, defeat sets in.The reality is that the real estate investing space has opportunities for nearlyeveryone; it just takes a bit of research, having an open mind, and creativity. Noticethat we did not mention "lots of money."Why? Because there are proven methods that successful real estate investors havebeen using for decades that take little to nearly no money to get started.Today we will be covering the hidden loophole of investing in real estate with limitedfunds.ELITE MEMBER INSIDER SERIESTHE HIDDEN LOOPHOLE OF INVESTING IN REAL ESTATE WITH LIMITED FUNDS4
THE TRAPOwning a home is a dream shared by many adults across the world. It provides asense of establishment in life, security, and well, a place to call home. However, whenit comes to investing in real estate for passive income purposes, investing in apsychical single-family home may not be the best option.If you have limited funds, time, and knowledge on real estate investing, but are stillmotivated to jump in - The first thing we would suggest that you do is to stay awayfrom physical real estate!Why? Even the most experienced real estate investors encounter hurdles whendealing with physical real estate that has caused some to lose money and, in somecases, lose everything they have.If you are currently a homeowner or know of one, you have more than likely heardyour fair share of repair horror stories. The AC unit is crapping out in the middle ofsummer. The bathroom floods, which cost thousands of dollars in repairs. These areall real scenarios that you may have to face as well if you chose to invest in this route.ELITE MEMBER INSIDER SERIESTHE HIDDEN LOOPHOLE OF INVESTING IN REAL ESTATE WITH LIMITED FUNDS5
Unless you are a handyman or woman and can do the repairs yourself, hiringcontractors for jobs like these can easily land you a four-figure bill. But that wouldn'tbe logical for someone who has a limited budget for their first real estate investment.Not to mention how much money it takes to purchase the property, to begin with.The national average down payment on a home is 12%. In 2020, the median averagehome cost nationwide was 320k. And although that number can differ significantlydepending on location, take into consideration, it is around 12k down needed forevery 100k.ELITE MEMBER INSIDER SERIESTHE HIDDEN LOOPHOLE OF INVESTING IN REAL ESTATE WITH LIMITED FUNDS6
TURNING YOUR HOME INTO A CREDIT CARDFor current homeowners, the banks may recommend a "great" solution for your lackof cash. A HELOC, or home equity line of credit. A HELOC, put simply, is the processof taking out a 2nd mortgage against your property. The banks may recommendleveraging the HELOC method to raise the 12% downpayment needed for theinvestment property.This only looks like it solves your current problem, but in reality, it instantly puts you ina horrible position. At this point, you have turned the equity in your main into a creditcard that will be used to purchase an investment property that may or may not goas planned.Your current mortgage payments have increased; more times than often, investorsrealize that they were to be way too unrealistic with the amount of work that will beneeded to renovate or repair the home, or there may just be hidden problems lurkingaround the home waiting to present themselves.ELITE MEMBER INSIDER SERIESTHE HIDDEN LOOPHOLE OF INVESTING IN REAL ESTATE WITH LIMITED FUNDS7
We are trying to say that cash is already short, and by implementing this method intoyour strategy and again by purchasing physical real estate assets in general, you areexposing yourself to an amount of risk that has changed lives for the worse.And even though it may sound like a nice success story, starting off with investmentsof this size with little to no experience is not a wise choice. Sure, the stars may align,everything may go as planned - but in the weird chance that it did not, your mistakesand learning experiences will come in the form of agony and financial loss.Contrary to the picture social media and the general public paints around investingin purely physical real estate assets, there are non-physical real estate investmentopportunities as well. These types of investments provide the freedom to movearound and travel as you please.Unless you hired a project manager or other like professional to oversee your physicalreal estate projects, you would have to be present and on-sight on a somewhatfrequent basis (or should want to be at least).ELITE MEMBER INSIDER SERIESTHE HIDDEN LOOPHOLE OF INVESTING IN REAL ESTATE WITH LIMITED FUNDS8
INSIDER SECRETSThe loophole we are about to share withyou is publicly displayed (and backed byfinancial institutions) but, for somereason, not taken advantage of by thegeneral public. The reason for that, webelieve, is that so few people know aboutthe benefits of this loophole. It's one thatdoesn't take much work on your end.It's one that you don't need six, five, oreven four figures to invest in. We aretalking about Real Estate InvestmentTrusts (REITs). One of the best parts ofREITs is that anyone can purchase them,and you can get started with under 100.A REIT is a fund that represents acompany's investment in CommercialReal Estate Investments (CRE). This allowseveryday investors, regardless of theircapital and investing backgroundexperience, to become an owner of CREproperties.Examples of CRE Properties include: Industrial Buildings Apartment Complexes (Usually over 12 units) Office Buildings Shopping Centers Factories, and Warehouses Urgent Cares, Hospitals, ClinicsPretty much anywhere you see a sign that says "Lease Now," that is not an apartmentunit itself, more than likely falls under CRE's category. There are three main classesthat a CRE property falls in. Class A, Class B, and Class C - and nearly all buildingsother than single-family homes fall into one of those CRE property classes.ELITE MEMBER INSIDER SERIESTHE HIDDEN LOOPHOLE OF INVESTING IN REAL ESTATE WITH LIMITED FUNDS9
These property types require a downpayment anywhere from 20% to 30% (sometimesmore) of the properties value. Oh, and the CRE industry is known for having the mostexpensive type of properties. Seeing properties valued at 7, 8, and even n figures isa common occurrence.Oh, and credit? Not needed at all. No loan applications/approval process. You canliterally invest in CRE investments or funds from your phone in a matter of minutes. Inno way shape or form is your credit involved, and the transactions are quick.Although there are two different types of REITs, Public and Private REIT, Public REITs,as its name suggests, is for the general public. Private REITs are bought and sold byInstitutional Investors - like PE or Private Equity Firms, Banks, and others.As we stated earlier, public REITs can be purchased over your phone. Since they aretraded publicly on the stock market, they can be purchased through any onlinebrokerage account. Many online brokerage platforms offer low to no fees to createan account and place trades. The majority of them actually offer you bonuses forjoining, making a deposit, and telling your friends about them.By law, REITs are required to pay 90% of their taxable income via shareholderdistributions on an annual basis. This is one of the benefits and main differences thatseparate a REIT from other forms of investment vehicles traded on the stock market.ELITE MEMBER INSIDER SERIESTHE HIDDEN LOOPHOLE OF INVESTING IN REAL ESTATE WITH LIMITED FUNDS10
ALL ABOUT REITSOther companies are able to set their own dividend payout amount - and change it!They may promise or "project" one dividend payout amount, but then, when quarterlyearnings come around, the change would reduce or even suspend the payout forthat period if their performance as a whole underperformed.While the question "Which investment is better, a REIT or Psychical Real Estate?" canbe more of a subjective matter. There are some features or benefits that makeinvesting in REITs look like a no brainer.For one, the time it takes to manage the investments widely differ. Think of REITs asinvesting in a team, because that's exactly what it is. A team of CRE investingprofessionals who have a passion for space. Instead of you going about it yourself(at least to being with), it is always great to have a team if possible.ELITE MEMBER INSIDER SERIESTHE HIDDEN LOOPHOLE OF INVESTING IN REAL ESTATE WITH LIMITED FUNDS11
See, these people don't invest tens of millions to lose. They invest and play the gameto win. When you invest by yourself, well, you are by yourself. There will be no one tobounce your ideas off of or ask for help at all. This is their life, and after meeting oneof them, you will see for yourself how they treat CRE investing.It is also for that reason that we believe that REITs are misunderstood andmisclassified by the public. Many have a false belief that REITs are risky. While anyinvestment and even the best of opportunities come with their own risk, REITsrepresent a necessity more than they do a company.Since REITs are made up of CRE properties rented to individuals needing housingand/or businesses/retail / office space, tenants who need what you have are whatseparates them from regular stocks.Tenants are your profit return producers. Everyone needs a place to live; not everyoneneeds a computer, tv, expensive phone, etc. It is a business that has to do little to noadvertisement because everyone is always searching for you instead of the otherway around.When the 08 crisis hit, tens of thousands of families lost their homes. But those samepeople still needed a place to live, and apartments were their safe haven.The main point here is stability. And if people really stopped for a moment to do theirresearch, they would see the truth when it comes to REITs vs. stocks and bonds. Thestock market isn't as great of a performer as many believe it to be.REITs have also surprisingly outperformed the stock market an average of 9.24% overthe past three decades. REITs tend to move against the rest of the market, so that'sanother reason why it's a must to hold in your portfolio as it adds balance anddiversification. When one is up, the other is down and vice versa.A REIT can be sold instantly. There's no need to work with a real estate agent, findprospects, find prospects that are interested, and then wait for them to get theclearance from their bank. No waiting for the due diligence period to be completedby the buyer (Which can take months.)Selling a piece of CRE property is no quick transaction. The underwriting process itselfcan take weeks (if not longer). In a nutshell, underwriting is essentially a list of prosand cons on the property with financial figures attached to those pros and cons totry and determine the real value in the property.Many CRE professionals have years of experience through various platforms likementorships and hands on experience. REIT’s give you a chance to get your foot inthe door of real estate investing while you continue to become more knowledgeablein the space.ELITE MEMBER INSIDER SERIESTHE HIDDEN LOOPHOLE OF INVESTING IN REAL ESTATE WITH LIMITED FUNDS12
You can speak to the bank with whom you already have an account to see whattype of REIT’s their investment bankers may recommend. It can be as easy asautomatically drafting a set amount from your paycheck every two weeks which issystematically allocated into REIT’s.Sometimes in life we stumble upon an opportunity or exciting venture that we feelstrongly about but then for one reason or another, we give up pursuit. This happensa lot to aspiring investors early on in the game. Once they dive in and find out howmuch, and what it really take to become a successful investor, they becomediscouraged and move on.“All” it takes is patience and sacrifices. It is not uncommon to hear of a REIT producing12% gains and more on an annual basis. Even if it takes you years to achieve your“ideal” financial safe-zone - using REIT’s to achieve returns as great as 12% year overyear will launch you to your next level of investing.As we said, 90% of every millionaire currently walking this planet holds real estateassets in their portfolio. You may not be one “yet,” but REITs can help you get thereas it has and is currently doing for others.A quick internet search will reveal to you a list of exchanges that offer commissionfree trading and oftentimes run specials where they will match a portion of yourdeposit into your brokerage account.The last time the market was this ripe with opportunities, thousands were mademillionaires in a matter of years.ELITE MEMBER INSIDER SERIESTHE HIDDEN LOOPHOLE OF INVESTING IN REAL ESTATE WITH LIMITED FUNDS13
“THE SECRET GURU’S HIDE FROM YOU.” Save A Trip To The Movies – Buy This Instead. By this point in our lives, we understand the importance of investing and passive income. We see the influencers all over social media talking about
