“the secret guru’s hide from you.”

2 ELITE MEMBER INSIDER SERIES THE HIDDEN LOOPHOLE OF INVESTING IN REAL ESTATE WITH LIMITED FUNDS

CONTENTS “THE SECRET GURU’S HIDE FROM YOU.” .................................................................................................. 3

THE TRAP .............................................................................................................................................................. 5

TURNING YOUR HOME INTO A CREDIT CARD ........................................................................................ 7

INSIDER SECRETS .............................................................................................................................................. 9

ALL ABOUT REITS ............................................................................................................................................... 11

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“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 getting rich quick schemes, courses, or other "opportunities."

And then we have the one investment vehicle that gets much attention, but for good reasons - Real Estate. Some studies have even proven that 90% of all millionaires hold some form of real estate assets in their portfolios.

Over the past decade, more and more tv shows on rehabbing and flipping homes have 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 real estate speak for itself.

It's a straightforward concept at its core. Things can get a little complicated when it comes to choosing which method or strategies would work the best for you and your situation or goals.


And this is where the majority of speculators exit the game. The six-figure profits reel them in, but then when they find out that in some cases it takes six-figures to make those kinds of financial returns, defeat sets in.

The reality is that the real estate investing space has opportunities for nearly everyone; it just takes a bit of research, having an open mind, and creativity. Notice that we did not mention "lots of money."

Why? Because there are proven methods that successful real estate investors have been 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 limited funds.


THE TRAP

Owning a home is a dream shared by many adults across the world. It provides a sense of establishment in life, security, and well, a place to call home. However, when it comes to investing in real estate for passive income purposes, investing in a psychical single-family home may not be the best option.

If you have limited funds, time, and knowledge on real estate investing, but are still motivated to jump in - The first thing we would suggest that you do is to stay away from physical real estate!

Why? Even the most experienced real estate investors encounter hurdles when dealing with physical real estate that has caused some to lose money and, in some cases, lose everything they have.

If you are currently a homeowner or know of one, you have more than likely heard your fair share of repair horror stories. The AC unit is crapping out in the middle of summer. The bathroom floods, which cost thousands of dollars in repairs. These are all real scenarios that you may have to face as well if you chose to invest in this route.


Unless you are a handyman or woman and can do the repairs yourself, hiring contractors for jobs like these can easily land you a four-figure bill. But that wouldn't be 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 average home cost nationwide was $320k. And although that number can differ significantly depending on location, take into consideration, it is around $12k down needed for every $100k.


TURNING YOUR HOME INTO A CREDIT CARD

For current homeowners, the banks may recommend a "great" solution for your lack of cash. A HELOC, or home equity line of credit. A HELOC, put simply, is the process of taking out a 2nd mortgage against your property. The banks may recommend leveraging the HELOC method to raise the 12%+ downpayment needed for the investment property.

This only looks like it solves your current problem, but in reality, it instantly puts you in a horrible position. At this point, you have turned the equity in your main into a credit card that will be used to purchase an investment property that may or may not go as planned.

Your current mortgage payments have increased; more times than often, investors realize that they were to be way too unrealistic with the amount of work that will be needed to renovate or repair the home, or there may just be hidden problems lurking around the home waiting to present themselves.


We are trying to say that cash is already short, and by implementing this method into your strategy and again by purchasing physical real estate assets in general, you are exposing 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 investments of 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 mistakes and learning experiences will come in the form of agony and financial loss.

Contrary to the picture social media and the general public paints around investing in purely physical real estate assets, there are non-physical real estate investment opportunities as well. These types of investments provide the freedom to move around and travel as you please.

Unless you hired a project manager or other like professional to oversee your physical real estate projects, you would have to be present and on-sight on a somewhat frequent basis (or should want to be at least).


INSIDER SECRETS The loophole we are about to share with you is publicly displayed (and backed by financial institutions) but, for some reason, not taken advantage of by the general public. The reason for that, we believe, is that so few people know about the benefits of this loophole. It's one that doesn't take much work on your end...

It's one that you don't need six, five, or even four figures to invest in. We are talking about Real Estate Investment Trusts (REITs). One of the best parts of REITs is that anyone can purchase them, and you can get started with under $100.

A REIT is a fund that represents a company's investment in Commercial Real Estate Investments (CRE). This allows everyday investors, regardless of their capital and investing background experience, to become an owner of CRE properties.

Examples of CRE Properties include:

● Industrial Buildings

● Apartment Complexes (Usually over 12+ units)

● Office Buildings

● Shopping Centers

● Factories, and Warehouses

● Urgent Cares, Hospitals, Clinics

Pretty much anywhere you see a sign that says "Lease Now," that is not an apartment unit itself, more than likely falls under CRE's category. There are three main classes that a CRE property falls in. Class A, Class B, and Class C - and nearly all buildings other than single-family homes fall into one of those CRE property classes.


These property types require a downpayment anywhere from 20% to 30% (sometimes more) of the properties value. Oh, and the CRE industry is known for having the most expensive type of properties. Seeing properties valued at 7, 8, and even n figures is a common occurrence.

Oh, and credit? Not needed at all. No loan applications/approval process. You can literally invest in CRE investments or funds from your phone in a matter of minutes. In no 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 by Institutional Investors - like PE or Private Equity Firms, Banks, and others.

As we stated earlier, public REITs can be purchased over your phone. Since they are traded publicly on the stock market, they can be purchased through any online brokerage account. Many online brokerage platforms offer low to no fees to create an account and place trades. The majority of them actually offer you bonuses for joining, making a deposit, and telling your friends about them.

By law, REITs are required to pay 90% of their taxable income via shareholder distributions on an annual basis. This is one of the benefits and main differences that separate a REIT from other forms of investment vehicles traded on the stock market.


ALL ABOUT REITS

Other 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 quarterly earnings come around, the change would reduce or even suspend the payout for that period if their performance as a whole underperformed.

While the question "Which investment is better, a REIT or Psychical Real Estate?" can be more of a subjective matter. There are some features or benefits that make investing in REITs look like a no brainer.

For one, the time it takes to manage the investments widely differ. Think of REITs as investing in a team, because that's exactly what it is. A team of CRE investing professionals 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.


See, these people don't invest tens of millions to lose. They invest and play the game to win. When you invest by yourself, well, you are by yourself. There will be no one to bounce your ideas off of or ask for help at all. This is their life, and after meeting one of them, you will see for yourself how they treat CRE investing.

It is also for that reason that we believe that REITs are misunderstood and misclassified by the public. Many have a false belief that REITs are risky. While any investment and even the best of opportunities come with their own risk, REITs represent a necessity more than they do a company.

Since REITs are made up of CRE properties rented to individuals needing housing and/or businesses/retail / office space, tenants who need what you have are what separates them from regular stocks.

Tenants are your profit return producers. Everyone needs a place to live; not everyone needs a computer, tv, expensive phone, etc. It is a business that has to do little to no advertisement because everyone is always searching for you instead of the other way around.

When the 08 crisis hit, tens of thousands of families lost their homes. But those same people 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 their research, they would see the truth when it comes to REITs vs. stocks and bonds. The stock 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% over the past three decades. REITs tend to move against the rest of the market, so that's another reason why it's a must to hold in your portfolio as it adds balance and diversification. 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, find prospects, find prospects that are interested, and then wait for them to get the clearance from their bank. No waiting for the due diligence period to be completed by the buyer (Which can take months.)

Selling a piece of CRE property is no quick transaction. The underwriting process itself can take weeks (if not longer). In a nutshell, underwriting is essentially a list of pros and cons on the property with financial figures attached to those pros and cons to try and determine the real value in the property.

Many CRE professionals have years of experience through various platforms like mentorships and hands on experience. REIT’s give you a chance to get your foot in the door of real estate investing while you continue to become more knowledgeable in the space.


You can speak to the bank with whom you already have an account to see what type of REIT’s their investment bankers may recommend. It can be as easy as automatically drafting a set amount from your paycheck every two weeks which is systematically allocated into REIT’s.

Sometimes in life we stumble upon an opportunity or exciting venture that we feel strongly about but then for one reason or another, we give up pursuit. This happens a lot to aspiring investors early on in the game. Once they dive in and find out how much, and what it really take to become a successful investor, they become discouraged and move on.

“All” it takes is patience and sacrifices. It is not uncommon to hear of a REIT producing 12% 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 over year will launch you to your next level of investing.

As we said, 90% of every millionaire currently walking this planet holds real estate assets in their portfolio. You may not be one “yet,” but REITs can help you get there as it has and is currently doing for others.

A quick internet search will reveal to you a list of exchanges that offer commission free trading and oftentimes run specials where they will match a portion of your deposit into your brokerage account.

The last time the market was this ripe with opportunities, thousands were made millionaires in a matter of years.

“the secret guru’s hide from you.”

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