We’ve all heard the horror stories. The cousin who lost tens of thousands on a bad flip. The friend from high school whose property manager stole her rent and ran. Or perhaps the story is a little closer to home? Maybe you have lost money in real estate yourself.
Real estate investing can be a risky business.
But the reality is that there are three primary places where real estate “losers” fail in this business, and if you can plan for them, you can virtually eliminate all the risk from your real estate investing.
Wall Street Hedge Fund Managers do it to protect their investments, why not you?
The video below explains where money is usually lost, and expounds on an proven investment strategy ripped straight from the secret pages of a Wall Street Hedge Fund Manager’s playbook that is changing the game for real estate investors: trilateral investing.
Check it out!
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Today, I’m going to show you how to virtually eliminate the risks from your real estate investments.
Sounds crazy, right?
What is this?
Real estate investing, ‘that’s a risky thing!’
That’s what most people think because you everybody knows somebody who lost money in real estate, maybe a lot of money, and maybe you know somebody who has lost money in real estate. Or, maybe it actually hits a little bit closer to home… like maybe you have experienced some losses in real estate. I get it.
Well, if you cover 3 bases, then you can virtually eliminate your risks on real estate investing because most people that lose money in real estate, they’ve lost it in one of 3 places, or maybe a combination of those three.
- The first place is a bad contractor. Yes! A bad contractor can make or break your projects.
- Number two is a Property manager. A good or bad property manager, they can make or break your entire operation, so do as much do diligence on your contractor and property manager as you do on the properties themselves. It’s that important. It’s everything, really.
- Third place is just a bad strategy, a strategy based on appreciation. Now, a lot of people win investing for appreciation, but a lot of people lose… and the reason being is because when your investing strategy is appreciation based, it’s a gamble. You are gambling. You are really vulnerable to fluctuating market conditions with this strategy. So it that’s your strategy, it needs to be redirected from an appreciation focus to an income focus, and then some. Let me show you what I mean. If you’ve got a piece of paper, you might want to do this with me. Write “Income” at the top of the page.
So right there, you are already so far ahead of those, as far as risk goes, who are betting on appreciation all by itself. Appreciation is great. It’s the icing on the cake, though. It’s not the cake itself. Income is your cake.
Appreciation is the icing. Income is the cake.
Now, to go further and hedge yourself against risk, you need a trilateral income strategy and let me show you how this works. On your piece of paper, go ahead and draw three intersecting circles.
And so, this represents your trilateral income strategy and you have a fast-paced strategy, you have a medium-paced strategy and you have a slow-strategy.
- The fast-paced strategy… that might be a lending strategy. It could be transactional funding, could be hard-money lending, maybe it’s the quick wholesaling of properties, those are examples of fast-paced strategies.
- Your medium-paced strategy… that’s going to be your single family residence ‘buy and holds.’ Maybe your duplexes and four-plexes but really small buying whole projects. That’s your medium strategy.
- Your slow strategy… what that is, that’s your bigger developments. Maybe you are developing a community or developing a giant building or you’ve got a large multi-family property that you’re rehabbing and then you’ve got to re-arrange the management and make some adjustments there and its performance and put some tenants in there. That is a long-term strategy.
Summed up, ‘Fast’ is today money, ‘Medium’ is tomorrow money and ‘Slow’ is future money. You need all three if you’re going to play the “can’t lose” game of the Wall Street Hedge Fund Manager, and here’s why…
In your real estate investing… if you have just the medium and slow strategy, that’s good. This is okay but what happens is you don’t have the today money coming in and the common challenge you’ll experience is the suffering of Operations, because you don’t have the money to run the day to day business.
In your real estate investing… if you have a fast and slow strategy, you’ve got some good money coming in on a daily basis but what can happen your operation sucks up the fast money and you never really have the capital, manpower or resources to apply to your long term strategies resulting in them taking much longer to develop then they would otherwise.
In your real estate investing… if you have a fast strategy and medium strategy, this can be really exciting.
It can be exciting because you’ve got money coming in today and you’ve got money coming in tomorrow. You feel like you are really moving forward. You’re feeling really profitable and you feel like you’re prospering, but what happens is that you’re vulnerable to fluctuating market conditions. You don’t have the long term security in place that a slow strategy can provide.
So, if in your business you have all three different paced strategies in place, you have virtually eliminated 99% of everything that can go wrong in real estate investing.
…you have virtually eliminated 99% of everything that can go wrong in real estate investing.
You’ve got good property management, you’ve got a good contractor and you’ve got a trilateral income-based investment strategy.
Do that! And it’s really tough to lose money investing in real estate.
Go back to your business and take this information and compare the two. See what adjustments you can make to get yourself right in the sweet spot of all three income strategies to where you are virtually eliminating the risk from your real estate investing.
If you are too busy and you don’t have the time to do it, or maybe you don’t have the desire to do it, that’s okay, I understand. It is a lot of work to put in place. I know because we set all of this up for the Epic Wealth Fund. This is how our business operates. So if you are too busy or you don’t have the desire to do it and you are an accredited investor, I invite you to take a look at our business, you may even want to jump on our backs and come along for the ride. We’ve got everything all in place.
Go to to EpicWealthFund.com, download the executive summary and then judge for yourself.
I’ll see you next time.
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