So What Does Nothing Down Real Estate Investing Possibly Have In Common With Successful Email Marketing Strategies?
Have you seen these men and women all over late night cable TV using their 30-60 minute pitch-a-thons, promoting how you and I can supposedly make a fortune investing in various types of income producing real estate, using a non traditional form of investing more affectionately referred to as “Nothing Down” Real Estate investing (aka) “creative financing.”
Basically this non traditional form of real estate investing, (which is often frowned on by certain members of the traditional real estate profession), finances all or part of your purchase using some type of debt.
And obviously the more front end loaded debt involved in your purchase, (aka) leverage), the less initially upfront cash you or the purchaser need to have involved in order to complete your purchase.
And this is how the phrase “Nothing Down” real estate investing gradually became so popular and more main stream. And this particular post will hopefully demonstrate the odd similarities between successful email marketing strategies and so called “Nothing Down” real estate investing.
Entrepreneur You’d Definitely Be Surprised At The Similarities Between Successful Nothing Down Real Estate Investment Strategies And Profitable Email Marketing Strategies!
First of all it’s critically you understand “what” the phrase “Nothing Down” really means as it relates to investing in different types of rental property. It’s not literal. Say what? It basically means you are attempting to purchase the property using 100% financing.
Say for example. (Keep in mine in the interest of both time and space. You’re about to read the highly condensed explanation of a very sophisticated form of asset (property or business acquisition.)
Let’s say a rental property (or home) is appraised and listed for sale for $225,000 dollars. And the home still has an outstanding debt of $200,000 dollars.
And let’s say the outstanding debt of $200,000 dollars has an interest rate of 5% fixed with 27 years still remaining on it’s term. And you offer to buy it from the current owner(s) who are for any number of reasons, no longer able to afford the monthly payments.
So they need to sell it and move on asap. And initially unbeknownst to them, you have no plans to actually live in the property.
You are purchasing it -in order to immediately resell it to a potential new homeowner who unfortunately doesn’t have A-one credit and therefore they can’t just apply for traditional financing from a bank or credit union.
So What If Anything Is The Connection Between Nothing Down Real Estate Investing And Successful Email Marketing Strategies!
So you offer to purchase the property for the exact same purchase price of $225,000 dollars. Say what? Only instead of you given the sellers the original $25,000 dollars as a down payment like they originally did when they first purchased the property.
Instead when you advertise the property you’ll ask for the same $25,000 dollar down payment. But your buyer will now take over (assume) the outstanding -remaining -loan balance of $200,000 dollars, but instead of them paying the loans 5% interest rate.
Their new interest rate is 8%for the remainder of the loans term. (Now in the real world the bank or lender may not want or allow the new buyer(s) to assume the outstanding loan obligation without some serious negotiations.)
However, since the current owners are in partial or full blown distress mode, it’s in the banks best long term interest to allow a more stable- gainfully employed buyer, who plans to live in the home to take over the outstanding loan obligation.
Whenever You Can Finance A Home Or Business Or Asset Of Some Kind 100% ! (This Is The Financial Equivalent Of A Nothing Down Or Creative Financing Strategy!)
So in essence you’re leveraging the outstanding $200,000 loan balance. Huh? While you’re legally on the hook for the $200,000 dollar outstanding loan obligation, at 5% for the remaining 27 years. (And your new buyer(s) pay all or most of the traditional closing costs too.)
Once the sale is finalized, your immediate re-sale terms to your new buyer(s) are the same $225,000 dollars sales price. And your terms are the exact same 10% down or $25,000 dollars down.
However, your ne buyer (s) will finance the remaining $200,000 dollars by simply assuming the remaining loan balance, but instead of them paying 5% like the previous owners did. Their new loan rate is 8% for the remainder of the loans term.
So in essence you’re grossing the 3% difference on the spread of those two loan amounts. And that gross difference ultimately translates into X amount of dollars per months.
With no more worries or ongoing hassles about being an amateur property manager- managing or trying to manage a rental property.
(Remember entrepreneur in the interest of both time and space. This is the super condensed version of this very sophisticated form of real estate or business acquisition. So a lot of the critically important concepts, strategies and full explanations aren’t being covered.)
Who Says Strategic Email Marketing Has To Be A Hassle Or Expensive?
Now (finally!) let’s turn your full attention to a potentially viable example of a “Nothing Down” email marketing strategy. Let’s say you or your major competitors own a local Mom & pop, single location bakery business.
And since you’ve been looking for some non complicated, proven methods to take the marketing/promoting of your business to a whole new level.
Without having to constantly put in more and more hours into your business. (Because you’ve already done more than your share of that, correct?)
So you get wind of reputable, paid email service provider Aweber ((my paid email service provider of choice BTW), has just announced a brand new offer of their award winning service.
Now a brand new customer can open a free account, (and not pay a dime), until their list has reached 500 opt ins. But they’re only allowed to have one list.
And of course their free account is semi limited and they don’t receive the many benefits of all the full functionality, until they start paying for the service.
So Why In The World Aren’t You Or Your Major Competitors Not Consistently Benefiting From This Potentially Profitable Opportunity?
So you or your major competitors immediately open your new free account and place a big-make shift sign- near your cash register announcing a free monthly drawing.
And each opt in email local business owner or service provider gets the chance win to $500 dollars worth of free credits. And they have a total of 90 days after they receive notice of being that particular months 1st grand prize winner, to use their credits in any combination they choose to.
But here’s a nice marketing twist or two. Since they are only allowed one list with their free account. (Get this.) They create an entirely separate monthly free drawing for their local customers to drop their name in a fish bowl, in order to win a $25 dollar a month credit for the next 12 or X number of months. Say what?
And they use their free Aweber (or paid email service provider of their choice) to build their opt in email list of local business owners or service providers. And they use the fish bowl for the locals to simply print their first and last name and and their phone number.
Entrepreneur You Can Or Definitely Should Be Constantly Strategically A/B split Testing Your Various Email Marketing Strategies And Tactics!
Here’s the other marketing twist. As you or your major competitors opt in email list of local small business owners or service providers starts to approach the 500 limit.
You or your major competitors simply temporarily pause the free drawing, so no more new potential subscribers can enter it. Coming up very shorty in part two you or major competitors will finally ‘discover” how to connect the marketing dots. So see you in just a little bit.
In the meantime, entrepreneur are starting to at least get the basic idea of “what” the connection is between successful “Nothing Down” real estate investing and potentially profitable strategic email marketing strategies are? I sincerely hope so.
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