(One Has Nothing To Do With The Other, Right?)
At least some of you remember outrageously popular, “Nothing Down” real estate investment guru Dave Del Dotto, correct? Dave was really at the peak of his popularity during the 80’s and early 90’s.
During that time it was practically impossible, (in America!) To turn on your TV between 1 -5 am. Practically any day of the week. Without seeing at least one of his 30 or 60 minute infomercials. Promoting his “Cash Flow” system educational course.
That is before he and others in his industry. Ran into some major legal challenges with the FTC among others. But let’s effectively deal with the burning question at hand, shall we?
So Why Not Strategically Leverage Some Proven Creative Marketing Incentives In Order To Move Your Business Or Service Forward?
One of the major reasons Dave and many of his contemporaries were able to successfully negotiate some of their most successful Joint Venture (JV) revenue share agreements.
Is because they routinely demonstrated their ability to close various deals. Both real estate investment related. And non real estate investment related.
In Dave’s specific case. Because of the collective popularity and outrageous success of his live X day workshops, best selling book, courses, coaching, keynote speaking and 5 day Real Estate Investment Wealth Creation Bootcamps etc.
Doors which simply weren’t open to others just starting out in the seminar, publishing or public speaking arena. Dave and others were able to get very creative with their bank accounting filling marketing and promotional strategies.
Here’s A Really Cool Way To Leverage Your Various Advertising Costs!
Just to clear up some of the basic marketing terminology first. When real estate gurus or the student/customers who follow them. Use the terminology “Nothing Down.” Ladies & gentlemen it’s not literal. It just means creatively borrowing money.
And leveraging it. Typically by re-loaning it at either a higher interest rate. Or by breaking even on the initial front end. But making up for it on the long term back end of the transaction. (But only the experienced should be trying to implement these types of income deferred strategies and tactics.
Say strictly for hypothetical marketing illustration purposes only. A creative, (aka) “Nothing Down” real estate investor. Purchases a single family home or a duplex for $250,000 dollars or X. With the following terms. An eight percent interest rate.
Fully amortized over 30 years. (meaning with each periodic payment made. The original loan amount slowly pays down/amortizes.) The monthly payment. Until the entire unpaid loan plus interest is fully paid off.
The creative estate investor immediately turns around and resells the property. For the exact same price of $250,000 dollars or X. (Say what?)
The More You Understand Basic Leverage In It’s Many Forms! (The More Creative Your Marketing Or Promotional Strategies Can Be Or Ultimately Become!)
But because they charge their new buyer a slightly higher interest rate of 11% or X. The new buyers monthly or agreed upon periodic payment is higher than what they are legally obligated to pay their previous seller.
And the monthly spread in payments. Theoretically is the investor(s) monthly or periodic profit. That’s the overall concept in a nut shell. Without getting too deep into some of the other vital nitty gritty details! 😀 Ladies & gentleman can you see and appreciate that?
Now then. Image the following potentially profitable, “Nothing Down” type of marketing leverage. (Either initiated by Dave or some extremely marketing savvy real estate or entrepreneurial based publication.)
A major biz opp type of magazine. Approaches Dave or one of his many successful contemporaries. With the following offer. They will gladly run some of Dave’s most successful quarter, half or full page ads.
For their actual hard cost up front. Whenever they have unsold ad space of any kind. 😀 In exchange for receiving anywhere from 10-25% of either:
1.) The initial gross front end profits. After they’ve been completely reimbursed for their entire initial front end costs.
2.) Or for 25 or X% of the initial gross front end profits. Plus share equally those prospect/leads. But the magazine could then JV (Joint Venture) those extremely hot leads elsewhere from now on. Don’t you agree? 😀
My friend, that’s the long term money making potential of so called “Nothing Down” financial arrangements. Any questions?
Who Says You’re Marketing And Promoting Can’t Get A Little Creative Every Now And Again?
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