Thursday, October 3, 2013

The Five Profit Centers of the Strait Path System

Every deal that we do in the Strait Path System has 5 areas that make the investment profitable.


1.  Discount Equity – Discount equity is the difference between the purchase price and the market value of the home (or what the home would be able to sell for in the current market).  The Strait Path system requires that any home purchased have at least 15% equity (or more) when the home is purchase.  For example, if a home is worth $200,000 and you purchase it with 15% discount equity you would buy the home at $140,000 and you’ll make $60,000 just on the purchase alone.


 


2.  Cash Flow – Cash flow is the amount of money that is received from the tenant after the expenses and mortgage payment are made.  Each investment transaction must have a positive cash flow to be considered for purchase in the Strait Path system.


 


3.  Down Payment – This is the money a buyer initially pays in the process of purchasing a property.  In the Strait Path system, the buyer starts out as a tenant and their down payment is called “option consideration” and is the money paid for the opportunity to purchase the property at a later date.  This money is non-refundable and averages about $5,000 per house.


 


4.  Appreciation – Appreciation is the increased value of a property over time due to market forces (especially inflation and demand).  This profit center is not guaranteed but if your investment purchase is in a “hot” (appreciating) market then the chances of realizing appreciation on the property is greatly increased.


 


5.  Tax Benefits – Tax benefits are available to every homeowner.  The mortgage interest is tax deductible on every home.  In addition, other operating expenses related to owning investment property are also available.


 


Most investments can count on 1 or 2 of these profit centers.  However, I have not come across any investment system or strategy that takes advantage of all 5 profit centers on each investment.  This makes the Strait Path system stand head and shoulders above any other  investment program.


5 Profit Centers



The Five Profit Centers of the Strait Path System

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