At some point, most of us realize that life is a gradual process of acquiring the knowledge necessary to stay alive and maybe make a little money along the way. Remember when Mom told you not to eat stuff off the sidewalk? There’s a reason for that – you could get very sick. Or when Dad told you not to stand on the very highest rung of the ladder because it’s not safe, as he soon proved by going to the very top in a psychotic effort to clean the last leaf from the gutter – and promptly fell off?...
May 07, 2013•2 min
As you may know, we at Platinum Properties Investor Network believe that real estate, income properties specifically, are the premium investment asset in the world. It vexes us mightily to realize that millions of hard-working Americans are coming home from a day’s work to plop themselves down at the computer and see what their stocks have done that day. We can already tell you the answer to that without even looking – up, down, sideways. Forward two steps, backwards two steps. It’s all over the...
May 07, 2013•2 min
Like a broken record, we keep telling you that big-time inflation is just around the corner and now is the time to adjust your investment strategy. But why do we think inflation is coming? Okay, fair question. Here is the chain of economic events we see coming. 1. The natural consequence of our politicians “print more money no matter what” philosophy is increasing inflation. As prices go up, more investors will sell bonds in an attempt to preserve their wealth. This will place an upward pressure...
May 06, 2013•2 min
What’s to stop an interested income property investor from showing up at one of our heralded educational events, find out which markets we’re recommending, and head out to make your own connection with your own real estate agent? The short answer is nothing. There is absolutely to stop anyone from doing that. It’s not illegal. It’s not immoral, and we won’t hate you for it. We do, however, sort of cringe because we know a certain percentage of educational event attendees are doing just that. The...
May 06, 2013•2 min
Ahh, your own private bank. Wouldn’t it be great? Working, well, uh, banker’s hours. Plenty of cash at hand when you’re ready to begin investing. At Platinum Properties Investor Network, we’d like to point out there is a private bank you can use for income property investing you might not have thought about. It’s called your home. Yep, the structure you live in. You’ve got equity in there, right? Our average customer comes to us with about $300,000 equity in their home but don’t get discouraged ...
May 05, 2013•2 min
If you’ve been interested in income property investing for any length of time, whether you’ve actually pulled the trigger and bought a property or not, you’ve likely run across the “No money down!” hucksters. They’ll show you pictures of happy couples relaxing on their favorite beach, living a life of frivolity and luxury on the income from their rentals. Don’t get us wrong, you can create plenty of wealth using the income property approach but at Platinum Properties Investor Network, we feel it...
May 05, 2013•2 min
The answer to the question posed in the headline is “When hell freezes over” or, to put it more politely, “Never.” We feel pretty sure in making such a definitive statement because there is no logical way inflation will ever stop being a serious economic issue as long as our wrongheaded politicians think increasing the money supply is going to solve every problem. How does the government cause inflation? We love a good conspiracy theory as much as anyone but this time it’s straight forward. Mone...
May 04, 2013•2 min
Most of the time, we at Platinum Properties Investor Network would tell you that taking out a loan against your 401k retirement plan would be a bad idea. The reason is that the majority of people would waste the proceeds on the trappings of wealth – boats, cars, expensive vacations. If that describes what you would likely do with a 401k loan, you have our permission to skip the rest of this blog. For those of you still with us, there is one situation where we think it’s a great idea to borrow ag...
May 04, 2013•2 min
Warren Buffett, the Sage of Omaha, seems like a kindly old gentleman when you see him on television but never forget the man got to where he is in life with an eagle eye constantly cocked for opportunity. Recent events in the stock market are a good lesson for why we say the average investor should run from Wall Street investments with all due speed. Buffett, banks, and other elite investors are using the bodies of the middle class American to climb to even more wealth. How does it work? Here’s ...
May 03, 2013•2 min
Spend any time with television or radio these days and you likely will hear the pitch that corporate credit is the answer to it all. World peace, hunger, nuclear proliferation, a veritable free flow of money that gushes into your pocket any time you want it to. At this point, any thinking human with more than two brain cells to rub together should be a little suspicious. Is there anything in life that works like that? To this, we feel safe in saying “no.” But there are some potential advantages ...
May 03, 2013•2 min
We talked earlier about the four critical areas of rehab when you’re considering a foreclosure purchase for your income property portfolio. It’s good to be at least somewhat aware of these four areas. After all, accurate estimates could be the key to profitability. Most foreclosures recommended by Platinum Properties Investor Network are not going to have major trouble in these areas but it’s a good idea to at least be aware of the possibility. Roof – The primary areas for concern are wood rot, ...
May 02, 2013•2 min
Until recently, Platinum Properties Investor Network didn’t like to recommend foreclosures to our network. With the generally low quality of the selection, it was just too much of a risk to our reputation for finding excellent properties. But, for reasons you’re probably aware of, things have changed a little bit. Much of our track record for success can be traced to our ability to quickly react to changing market conditions. We now take foreclosures into consideration and even recommend buying ...
May 02, 2013•2 min
Just when you thought we were done proving how easy it is to create wealth in real estate through income property investing, we’re back with three more reasons. Reason #4 – “Realtors are a difficult bunch.” This is very NOT true when you work with Platinum Properties Investor Network. Our local area managers are real estate agents who LOVE to work with you. If they don’t, we quit sending them business and, believe us, they want our business. Reason #5 – “I might lose money.”Real estate is way sa...
May 01, 2013•2 min
Why aren’t more people investing in income properties when it’s the most lucrative, safest choice in history? Good question. Probably because people would rather watch television than improve their financial condition. Sure, everybody says they want to get rich but what are they actually doing about it besides flapping their gums? Talking wistfully about something you have taken no action to achieve is called whining. Don’t go into the Green Parrot Bar in Key West with that attitude. It’s an off...
May 01, 2013•2 min
Many contracts say that rent is due on the 1st of each month but the late charge doesn’t kick in until the 10th. So it’s no big deal if the check arrives on the 5th, 6th, or even the 9th. Right? We hate to break the bad news but your leniency on rent is only going to encourage more delinquency. You've heard this before from us - human nature! Maybe it’s time to get more serious about on-time meaning ON TIME! Here’s an idea crazy enough that it just might work. Don’t give them nine days of wiggle...
Apr 30, 2013•2 min
If you were starting out in real estate investing today, which direction would you go? At Platinum Properties Investor Network™, we believe that income properties are a great way to start, but another alternative to consider is a mobile home park. When we say mobile home, we mean either a traditional trailer or manufactured home. The voracious demand for affordable housing and financing is likely to keep the demand rising into the future. Some people consider a mobile home park the closest thing...
Apr 30, 2013•2 min
Not ALL real estate seminars are a rip-off but you can get taken to the tune of several thousand dollars without getting much actionable material in return if you’re not careful. Here are a few things to watch out for: 1. Be wary of price extremes. Very cheap or very expensive seminars should be examined closely, although for different reasons. If the event is cheap or free, face it, there will be a hard sell involved. Getting people into a room is expensive, so the promoter has to sell somethin...
Apr 29, 2013•3 min
Your broker has turned you on to an incredible income property deal that will cash flow big time from the beginning because it’s already leased long term. You’re so excited you might pass out. There’s cash in the bank to cover the purchase. Pull the trigger? Not quite that fast. Despite antiquated conventional wisdom to the contrary, buying a property with cash is not something a savvy investor would do. The problem with buying on a cash basis is that you short circuit the benefit of a beautiful...
Apr 29, 2013•2 min
If you’re part of the crowd of millions tired of getting slapped around by Wall Street chicanery, it’s only natural to be hesitant about committing more money to alternative investments, especially when you’ve been brainwashed your whole life to believe stocks, bonds, and mutual funds are IT. There is no other investment class. At Platinum Properties Investor Network™, we’re here to tell you real estate is not an alternative to the stock market. The word “alternative” implies the two concepts ar...
Apr 28, 2013•2 min
On The Creating Wealth Show with Jason Hartman, recent guest Thomas Woods reflected upon the prevailing conventional wisdom which says the free market has failed, thus intervention by the federal government is necessary to right the ship of economy. Nothing could be further from the truth. This economy cannot be blamed for the fiscal meltdown because there has been no free market in the United States since the early to mid 1920’s. Think about it. Can any country which has a central bank manipula...
Apr 28, 2013•2 min
After the preliminary interview process of discovering the best investment strategy for you, it usually starts with a three way conference between your Platinum Properties Investor Network™ advisor, the local market agent in the area of your choice, and you. This is where we go over the particular properties available and you decide which one you want. Now it’s time to get you pre-qualified for a loan. Lately, more times than not, we’ve seen clients using a lender in the local area where the pro...
Apr 27, 2013•2 min
The look of incredulity usually pops up somewhere during the middle part of the process. We’ve been helping a client pick out a property, put them in touch with the local market specialist, we're working the phones and e-mail to help find the “deal” they’re looking for. Then it sinks in. “We really don’t pay you anything for all this work you're doing?” The truth is, no, you really don’t. Which brings up the question of whether or not we’re in the charity business. Definitely not. We make money ...
Apr 27, 2013•2 min
One of the most frequent questions we get is why we recommend clients initially purchase one or two single family residential units in different geographical areas than a 10 or 20 unit apartment building located (obviously) in one spot. This is a perfect example of what we mean by diversifying your portfolio and it is VERY important in the beginning of your income property investing career. On a recent edition of The Creating Wealth Show , Jason Hartman recounted an experience from the early day...
Apr 26, 2013•2 min
You’re motivated to leave Wall Street investing for good and purchase an income property because, in a recent nightmare, you were visiting Bernie Madoff in prison to see if he had any hedge fund ideas. Good decision. Wall Street - bad. Income property - good. If you've been reading our blog, you already know the Platinum Properties Investor Network criteria for finding a good location. Is it time to pull the trigger? Not so fast, Dirty Harry. There’s a little thing you should be aware of called ...
Apr 26, 2013•2 min
Should you decide to buy a particular income property because it feels right, it’s located next to your favorite bar, or you’re just tired of looking? Umm, the answer to all three would be a loud, “No!” Why would you approach the most important part of the property investing paradigm with a seat-of-the-pants approach? At Platinum Properties Investor Network, we’ve chunked it down into a standard and highly successful routine. The first thing is still the first thing. Location! Never underestimat...
Apr 25, 2013•2 min
Have we pummeled you enough about the head lately regarding investing ONLY in things you control? Probably not, because it seems like there are still a few million crazies out there investing in Wall Street assets. Are they determined to lose their money? Let’s have a pop quiz. Investors who trusted the following people/companies were satisfied with the results – true or false? A. EnronB. WorldComC. TycoD. HealthSouthE. Bernie Madoff Our unofficial poll of absolutely no one related to any of the...
Apr 25, 2013•2 min
We’ve been talking a bit lately about how, in our humble opinion, the dollar is poised for a headfirst plummet off a very high cliff. When it does, get ready for the cloud of dust slowly rising up into the sky, just like in the Roadrunner cartoon when Wile E. Coyote makes yet another serious error in judgment. It doesn’t take much pondering to arrive at the conclusion that a good place to be when the currency crashes is - drum roll please - OUT of that currency. You need hard, tangible assets. L...
Apr 24, 2013•2 min
The worst person to be with inflation looming is the bank! The catbird seat is occupied by, you guessed it, the borrower. Why do we say this and are we just full of rotten beans when we do? No. It all comes down to purchasing power and the decreasing real value of the dollar over time. Here’s a quick, and hopefully clear, example. Today, in 2009, your banker loans you $1 million dollars to buy income property. From his perspective, your banker could also take that $1 million and buy one million ...
Apr 24, 2013•2 min
We don’t mean to scare you – well, actually we do. The words above were spoken by President Obama at a recent press conference. Ouch. Does that mean the U.S. economy is a car with a bone dry gasoline tank still rolling slightly from 233 years of inertia? Maybe. A better analogy might be the economy is a car with a bone dry gasoline tank still rolling slightly from 233 years of inertia heading off a cliff! What can we, as law-abiding citizens, expect when our government continues to bankrupt itse...
Apr 23, 2013•2 min
Last year, politicians in Maryland could not figure out how to balance the state budget. As most good public servants do, they thought, “Instead of making tough choices for the amount of money we have, let’s squeeze the wealthy for more because they don’t really deserve it anyway.” Presto! A brand new millionaire tax bracket was created with a top rate of 6.25%. And if you happened to be a millionaire with the misfortune of living in Baltimore or Bethesda, they’re going to toss more local income...
Apr 23, 2013•2 min
