(And Boy Is It A Good One!)

So what da ya mean, you had no idea that the Nothing Down Real Estate crowd could teach you a powerful marketing lesson? Why not? Well it most certainly can. Several in fact, However, in the interest of time, let’s focus on one of the more simpler, but not necessarily obvious concepts.

 So What Exactly Is This So Called Powerful Marketing Lesson That Can Be Learned From The Nothing Down Real Estate Investment Crowd?

In a word entrepreneur, “leverage”, what else? Some really smoking hot (long term) leverage to be sure. Case in point. Let’s take a really hypothetical  “Nothing Down” (aka) creative financing) Real Estate investment case study to demonstrate, some serious correlations, between marketing success and Real estate investing success.

However, in order to do so, we’re going to need to strip out a ton of incredibly vital information, in order to get to the meat of what we’re after here! Okay? So in other words, this is not meant to be (by any stretch of the imagination) a step by step “how to” investment in Real Estate guide, using so called “Nothing Down” investment strategies!

It’s just, that type of proven “how to”  investment model, serves are purposes extremely well, in this particular situation. In order to best illustrate some powerful benefits of applying  marketing leverage to your business, product or service.(So you can and will make more money!)

A Powerful Marketing Lesson Within A Lesson!

That said, the basic premise of using these rather sophisticated “Nothing Down” real estate investing techniques is to maximize your financial leverage, correct? So let’s say a troubled homeowner (for any number of reasons), simply can no longer comfortably afford the payments on their $250,000 home.

And they turn to a private investor to help them sell it and avoid the dreaded foreclosure process. Here’s where we strip all the (otherwise vital) real world step by step “nitty gritty” how to details, in order to cut to the chase!

Let’s say they have a 30 year mortgage, with twenty two years left to go and their current fixed interest rate was 5.50%. Now let me be extremely crystal clear here! The (hypothetical  payment) schedule that I’m using for this specific example, is based on an interest only repayment schedule!  Not an amortized loan repayment schedule!

(Which means for practical purposes, just multiply 250,000 x .055 and you get 13,750 in total payments per year! And divide that total by twelve and you should get a monthly repayment schedule of $1,145.83 per month.) ($13,750 / 12 = $1,145.83 in monthly mortgage payments.)

That’s the monthly interest payments only! There is no reduction of the original principal of $250,000 dollars, that was originally borrowed to buy the home!) If none of that made any sense, don’t worry about it, because this example has less to do with understanding Real Estate financing and more to do with understanding long term marketing  leverage!(It will all become clear a little further ahead, just hang on!)

Anyway, when the original couple bought it, they just paid the closing cost of X and started making their monthly payments of $1,145.83. And they also had to place in escrow (don’t ask!) a certain amount of money upfront, in order to cover (at least) that first years annual property taxes.

Now then, the private investor, is simply going to buy and them immediately resell this exact same property, to a  new more qualified couple, (financially stable couple) that wants to buy a home, but because they have a few dings against their credit and the husband is self employed.

They’re having a tough time securing conventional (traditional bank) financing! So they answer an ad that reads ” Nothing Down!” and just $1,666.67 per month! Buys beautiful three bed, two bath blah,blah,blah! (Serious buyers and shown by appointment only!)

In other words, the creative Real Estate investor, is going to sell the exact same home to a new buyer (in this case another couple or individual) for the exact same sales price as they originally bought it for and still make a nice cash profit! Huh? (You’ll see!)

That my friend is the essence of so called “creative financing” in a nutshell! Relax! You’ll get all juicy “how to”  details in part two! And you also discover the three separate profit centers contained in this extremely simple (and yes!) extremely watered down example! See ya in part two!

Please list at least two simple spin off concepts (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!

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