Let it be first stated that seeking the help of a licensed professional is always advised.
When we speak of retirement planning, two catch phrases that come to mind are “Retirement planning is a marathon not a sprint” and “The sooner you start retirement planning the better”. With professional assistance, it is fair to acknowledge that these are two excellent trains of thought. With life’s realities however, some hard working citizens for various reasons and often unavoidable situations, find themselves seemingly behind life’s eight ball when it comes to their own retirement planning and/or their retirement portfolios. These individuals need a catalyst to tremendously speed up the growth of their retirement portfolios and one that ideally mitigates risk while doing so. Possibly one such catalyst has recently been created and yes, it has a name, “Tri-Pod”. The Tri-Pod Investment Model was specifically invented to gain greater amounts of return in a short period of time while mitigating risk. It is based on two widely accepted and already used principles by many in the real estate investment industry. Those two principles are:
1. Continuously Leverage what monies you obtain to gain profit
2. Continuously Leverage what profit you gain to make more
These are such basic financial principles yet probably the most overlooked financial principles within America’s working class. In fact, if you are in the working class, overlooking the two aforementioned principles may be why you’ve stayed there. And continuously overlooking the aforementioned principles may be why generation after generation, this became your families plateau. Implementing a Tri-Pod may change this by simply raising that plateau on a continuous basis.
Let us take a look at a mock investment portfolio and mock Tri-Pod scenario. Assume your CDs, 401k, stocks, bonds, real estate, annuities and all your other investments combine to total $200,000. Your total annual return may fluctuate between 3% and 5% perhaps even less these days. That’s OK. But for most, $200,000 at 3% to 5% annual return is certainly not enough to comfortably retire and live out the rest of your years. Now lets take your same $200,000 and incorporate it within the Tri-Pod Investment Model. Leverage that 200k to bridge-finance a property buyer’s purchase by way of Lease Option, Leverage the instant equity and/or the created Note and profit from it. Continuously repeat the Tri-Pod process to make more. Your returns theoretically may increase up to, or above 17% to 30% annual per $200,000 deployed. View the data for yourself.
3% to 5%
$200,000 = creates $6,000 to $10,000 per year
17% to 30% = creates $34,000 to $60,000 per year
Of course there are additional factors to consider but in this mock example, your Return On Investment drastically rises when this collection of basic techniques are implemented. If this is accurate, your ROI is tremendously increased, your initial $200,000 investment is secured by real estate plus you have created Liquid, Equity, and a Note of which you are the sole owner. In the words of Tiger Woods, "This is huge". Now you have more assets to leverage. The more leveraging of your assets, the more opportunity to strengthen your overall portfolio at an accelerated pace. There are many other details to consider but basically, that is it.
It is important to note that the Tri-Pod Method’s accuracy has yet to be confirmed, and its success has yet to be proven. When asked about the lack of proof and accuracy confirmation, the Inventor of the Tri-Pod referred to the potential positive impact the Tri-Pod investment model may have for retirees, The Inventor, who at this time chooses to remain anonymous, also claims that “Proof is just a matter of funding and that funding is just a matter of time.” Definitely he is a confident fellow who is passionate about his creation. He goes on to imply the Tri-Pod is designed to function on multiple levels from isolated single family purchases to multi-million dollar projects.
For questions about this article or any other real estate questions contact Tony Conner directly through Examiner, or on Linked In, CashflowTony on Twitter.