Real estate investment opportunities.
Have you noticed how many extremely large and successful industries rely heavily on marketing leverage of some kind?
For ex;the ‘Nothing Down’ Real Estate investment opportunities industry has made an absolute fortune, simply by leveraging the general public’s insatiable thirst for specialized knowledge regarding successful real estate investing.
Your Local Banker And Insurance Company Profit Big Time Simply By Using Financial Leverage…
Sadly, a staggering 90% of the people that watch those late night (early) morning cable TV infomercials about ‘how to’ get rich by investing in real estate using “Nothing Down” investment strategies, still have no clue what financial concept the promoters of those shows are trying to convey.
In a word; leverage. Meaning- how you borrow (in this case) money at one rate and re loan it (or ) invest it at an even higher rate and profit from the difference! Huh?
For illustration purposes only. Here is a rather simple (yet) extremely watered down example in order to demonstrate the financial concept of “No money down.”
Or 100% borrowed money. Suppose you find a couple (or individual) who for whatever reasons could no longer comfortably afford to make the payments on their $250,000 dollar home.
(By the way, the actual price of the property is irrelevant, it’s the concept being conveyed here that’s important.)
Since the property appraises for that amount you agree to purchase it for that exact same amount. The current fixed interest rate the home owners pay is 5.50% for thirty years, minus the number years the current loan has left.
And you are going to sell the property (or if you prefer) flip this property to buyer B for the exact same sales price of $250,000 dollars, including all the necessary closings cost of course.
And still make a nice profit? Say what?
Financial leverage remember? Now keep in mine, since this is not a post (or course) about ‘how to’ properly invest in real estate using so called ‘creative financing’ this post (in the interest) of time can only cover the overall big conceptual chunks!
Because your buyers (buyer B) has less than top notch credit. Meaning- they can’t (for a variety) of reasons simply go to the bank in order to get a mortgage loan with a competitive interest rate, so they are grateful to be able to purchase a well maintained home in an upscale area and not have to pay a premium in the sales price!
However, they will be paying a premium in the fixed monthly interest rate that they’ll be paying you!
You’re charging them 10% on their loan balance. So in order to cut to the chase here’s how the numbers break down.
No Doubt As Time Steadily Evolves So Too Will Your Sales And Marketing Strategies Need To Stay Current!
A.) Your paying your sellers 5.50% on $250,000 dollars over 30 years. ($250,000 x 5.50 = $13,750 per year,divided by 12 equals a monthly payment of $1,145.83.)
B.) Your new buyers (buyer B) pays you 10% on the same $250,000 dollar loan balance over 30 years. ($250,000 x 10% = $25,000 per year divided by 12 equals a monthly payment to you of $2,083.33
You bring in $2,083.33- $1,145.83 and you net the difference each month of ($937.50) until the loan gets paid off!
( Of course, in reality the real amortized loan balance would not be the exact same $250,000, this example is just to convey the overall concept of ‘Nothing Down” or 100% financing.)
Hopefully you can see (conceptually) that you have borrowed or 100% financed this transaction and you net the difference each month. Of course your buyers would pay their own closings costs up front.
So you may need to kick in certain up front costs that you’d be reimbursed for once you collect your down payment and other fees etc, from your eventual buyer(s.)
Having A Financial Leverage Multiplier Is Always A Good Thing!
But without getting to bogged down in all of the necessary technicalities, you basically get the overall concept now,correct?
By the way, speaking of big time Insurance companies profiting by using ‘Nothing down’ 100% financial leverage techniques.
Q.) If you (like) the Insurance companies could borrow $500 million dollars (or more) at say 1-3% and re-invest that say money and yield at least 10% or more.
Do you think your business would be doing okay? Now you know how & why banks & Insurance companies own the biggest buildings in town! Any questions?
Your Long Term Online Success Will Involve Marketing Leverage Of Some Kind….
Which hopefully brings us full circle. As some of you already know. Yours truly has a powerful 50 page special report entitled: “The Ten Most Common Marketing mistakes Small Business Owners Make! (And How To Correct Them!)
Strictly for illustration purposes only. And to really demonstrate the enormous long term profit potential available to you as a savvy small business owner,that’s looking to maximize your viral marketing leverage.
Most of you know the name Robert Allen “Mr.Nothing Down” . He’s a big time mega best selling author and real estate investment guru.
Bob’s been around for over 25 years helping people gain financial freedom. He co – authored the outrageously successful “Chicken soup for the soul” book series etc.
And Bob probably has an opt email list in excess of one million subscribers! And he can probably joint venture and get exposure to four million more, for a grand total of five million opt ins!
Long Term Marketing Success Begins With A Strong Understanding Of The Basics!
Q.) Do you think yours truly would allow Bob Allen & his JV (joint venture) partners (or any other prominent guru or gurette) to sell or give away my 50 page special report to their list?
Without a doubt! Especially if they wanted to sell it and keep 100% of the front end retail profits of $29.95 apiece! Provided my two most productive affiliate links were included!
Think about it. If just one percent of their list of five million opt ins bought my text. They’d gross $29.95 x 50,000 sales. You can do the math yourself! ( 5,000,000 x .01% = 50,000 sales at $29.95 each!
(Or they could give it away to their subscribers as some type of free upsell bonus!)
Either way yours truly would net all the back end affiliate link sales from my top two affiliate programs! That’s the type of “Nothing Down” marketing leverage that can and will make you extremely rich! Don’t you agree?
Your Long Term Online Success Will Definitely Involve Some Email Marketing Strategies That Work!
Because without a doubt a certain percentage of those 50,000 opt in buyers are going to click on my affiliate links and buy something!
Q.) How many ways can your current business, product or service benefit from “Nothing Down” marketing leverage strategies within the next 60 days or less?
As always, if you got any value out of this post, please Google Plus or tweet this! Thanks!
Be sure that you grab your explosive free 22 step small business idea marketing kit! It’s a $97 dollar value! And for an extremely limited time, it’s free!
