We Offer A Consistent Proven Long Term Methodology
If you have been frustrated with stocks, mutual funds or preconstruction investments, and are looking for a way to consistently make your wealth grow in a safe consistent manner, then we encourage you to spend a couple minutes to read the rest of this introduction.
Our Real Estate Invesment Philosophy
Our philosophy is distilled from Ben Graham's Intrinsic Value principles first published in the 1930s in "The Intelligent Investor", and it is our experience that his classic investment philosophy can be effectively applied to real estate investment. We look for the following characteritics in any investment opportunity:
Our research methodology targets rapidly growing real estate markets with strong demographics in Florida, Mississippi, Go Zone, Texas, Nevada, Arizona, Utah, Idaho, North Carolina, the Caribbean and other high growth areas.
We target the following areas:
We follow population migration trends, actual and projected county growth, income growth and new construction permits. Finally we work in areas with strong rental demand.
Our products are usually turnkey and hassle free! We take the hassle out of real estate investing!
Why Most Real Estate Investors Fail
Over the past 25 years , it's been very tough to lose money in real estate. Of 100 clients we speak to that are long term owners of real estate, probably 95% of them have made significant returns on investment on their real estate. As an aside, that number is probably 30% when we speak to stock market investors.
However, in speaking with hundreds of clients over the years and having been through at least a couple of market cycles in our 20 years of investment experience, here is the key reason we believe most real estate investors fail to achieve their goals:
Greed & Fear Emotion Investing - All investing can be boiled to the simple concept of greed and fear. And most investors are driven by the greed of making a quick buck or the fear of not doing so while others are. Unfortunately, the investing was driven by the greed of making a quick profit without thought to monthly cash flow, carrying cost, exit strategy.
At the end, the only investor that succeeds is the one that approaches investments from a rational perspective and analyzes the opportunity using a present value of future cash flows approach, combined with real estate specific factors such as location, demographics, job growth and income.
Intrinsic Value: We Make Money On The Purchase - Each investment has an inherent intrinsic value and we seek to purchase properties at a discount to intrinsic value. In so doing, we achieve a Margin of Safety in our purchases which positions us for low risk, high potential return investing.
Leverage Incentives, cash back and Purchase at Discount to Market - Our guiding principles is to make the money on the purchase, by leveraging the power of our purchasing syndicate to get bulk discounts and cash back incentives.
Positive or Breakeven Cashflow - In the past couple of years, the concept of negative carrying costs has gained acceptance amongst real estate buyers. Not so with us. We will ONLY purchase properties where the present value of future cash flows offers an acceptable return on investment AND the monthly revenues plus incentives are greater than monthly expenses creating positive cash flow scenarios.
Our guiding principle is that any investment, whether it be real estate, stocks, bonds or a business, is valued according to the present value of its future cashflows. And a real estate investment must be able to generate enough revenue on a monthly basis to pay off expenses.
Minimal Downside Risk - First do no harm. Preservation of capital is priority number one. Most advisors pay lip service to this concept and then go out and buy risky investments for their clients. We achieve it for our clients by purchasing at significant discount to market value using the bulk purchasing power of our investment syndicate.
We break down every project into it's component inflows and outflows. Our analysis is performed using conservative projections and assumptions. If the analysis suggests an acceptable return, we then consider the project for additional analysis.
Exit Strategy & What If - When entering an investment, we define our exit strategy points. But we also have a What if scenario that ensures that if we can't achieve our defined exit timeline, we are able to continue to hold the property without suffering negative cash flow or negative carrying costs.
Avoid The Herd - If the public is rushing to purchase day 1 preconstruction and there is a frenzy to purchase, our Mastermind Wealth Builder group is likely considering selling opportunities. One of our group's founding principles is a somewhat contrarian approach to investment. Using this approach, our clients were able to avoid the frenzied purchasing environment of 2005.
Steady Upside & Positive Leverage - No, we're honestly not looking to hit the home run. We're happy with hitting solid doubles and hitting for a very high average. As you'll see, even an investment property that appreciates at 7% a year translates to a 70% cash on cash return through the use of positive leverage at 10% down.
How Do We Get Compensated?
Our fees are paid by the developer. By leveraging our distribution network, developers achieve a tremendous cost savings in advertising and marketing costs. No more running $25,000 full page ads in 10 different newspapers every week to bring in traffic. The savings are signficant and are passed on to our buyers.
We will NEVER charge You for any services we provide. Our services are FREE, always. We Value Our Clients Above All Other Relationships.
Our Philosophy for Wealth Creation Through Real Estate Investment
Our active clients are part of our Wealth Builders Group. The Wealth Builders concept is based on Napoleon Hill's concept of the mastermind alliance in his classic book Think and Grow Rich. He believed that a group of like-minded, achievement-oriented individuals could dramatically leverage each other's success.
In Think and Grow Rich, Hill discusses his creation of Master Mind groups and how these groups could multiply an individual's brain power and continually motivate positive emotions. Here are some guiding beliefs:
"Whatever the mind of man can conceive and believe, it can achieve."
"Desire is the starting point of all achievement, not a hope, not a wish, but a keen pulsating desire which transcends everything."
"Your big opportunity may be right where you are now."
"Perseverance: The majority of men meet with failure because of their lack of persistence in creating new plans to take the place of those who fail."
"What you think, so you will become."
"Every adversity carries with it the seed of an equivalent or greater benefit."
"Thoughts mixed with definiteness of purpose, persistence, and a burning desire are powerful things."
— Napoleon Hill
We hope that you will choose to be a part of our insider Wealth Builders Group and get to know us personally.
If your passion is real estate investment, we would love to work with you!
If you believe that real estate is the best passive wealth creation vehicle know to man, we would love to get to know how we can help you build a portfolio that you can retire on.
The next step is Yours! Contact us to set up a friendly FREE review of your investment objectives to see if we can assist you in achieving your financial goals.
Let's get started, Contact Us Now
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