Exempt Market Products, Real Estate, or Subway Franchise? A Case Study

Franchise, Condos, Apartment Buildings, or Exempt Market Products: Which Would you Choose?

Recently I had an extremely interesting conversation with an accredited investor living in Toronto. This gentleman owns a technology consulting business, is extremely intelligent and astute, and has achieved a level of success that affords freedom and choices. I love conversations with individuals who have carved their own path and taken the risk of starting a business. We can always learn something from true entrepreneurs.

I asked him how he ended up becoming an investor in exempt market products. He responded that, as he already has significant portfolio representation in the public stock markets, he also has a sizable portion of his portfolio in cash. His investigation led to a number of questions regarding investment options:

Should I start buying condos in Toronto, and develop a real estate portfolio, and follow the crowd?

Perhaps an apartment building in a suburban area?

Should I invest in a franchise such as Subway?

Are there additional investment products that can allow my capital to work harder than the 1.5% it is receiving in the bank?

Getting yourself informed is one of the keys to avoiding costly investing mistakes. He decided to roll up his sleeves and carefully investigate these options.

Option #1: Downtown Toronto Condos

After examining the real estate market in Toronto, he came to the conclusion that there are too many uncertainties associated with buying a condo for investment purposes. The market has shot up so much that it becomes difficult to overlay proper fundamentals on condos, and this leads to higher risk, and becomes speculative.

Purchasing downtown condos for investment purposes would most likely be suitable for someone who is already an expert in that market, and has a developed network of inside contacts, so as to be presented with and take advantage of the most ideal opportunities.

Option #2: Become an Apartment Landlord

He also investigated the opportunities available in apartment building ownership. The best buildings for investment purposes seemed to be in lower income suburban areas. Some of the buildings he looked at required immediate maintenance, which is an upfront cost to be factored in. Also, when examining “cap rates”, the asking prices of many buildings provided low annual income, under 6%. There are also monthly maintenance costs, and he could either perform these tasks himself, or pay someone to take care of them. After crunching the numbers, the conclusion was that net of costs, annual income generated would not be much greater than keeping his money in the bank.

I know many individuals who have created a fortune by purchasing apartment buildings. While this can be a viable strategy, the greatest opportunities seem to be acquired by those who have some sort of specialized expertise, knowledge, or contacts. By the time a building is presented as an investment opportunity to a novice, it very likely has been examined and passed up by the pros.

Option #3: Subway or Similar Franchise

The third option involved purchasing a franchise such as Subway. The great advantage to investing in an established franchise is that you are not starting from scratch. You are in business with a partner who knows the ropes inside and out, and the operation is essentially turn-key. After thorough investigation, this investor came to appreciate some important realities associated with buying his first franchise:

He would have to dedicate an enormous amount of time and energy, to run the franchise, and ensure everything ran smoothly
He would be on the hook for a lot of money (inventory, lease) if things didn’t pan out as expected
All things considered, he was still anticipating a franchise investment to earn approx. 15% annual return on invested capital. Pretty decent, and after all the heavy lifting of his first one was completed, the next should be easier, and so on. He saw the definite potential in the opportunity, but ultimately put it on the back-burner, as time commitments again prevent him from acquiring another full time job.

Being familiar with a number of successful franchise owners, every one of them has told me that the first few years are 80+ hour weeks of blood, sweat, and determination. Then the payoff comes. If this suits you, a franchise can be an excellent way to create wealth and independence.

Option #4: Purchase a Diversified Portfolio of Private Exempt Market Products

Prior to making his final decision, this astute investor asked a LOT of questions, regarding all exempt market products considered:

Who is the manager?
What is their background and track record?
What is the structure and specific terms of the investment?
Who gets paid first, me or management?
Why is this area a good opportunity?
Is management able to uncover value by purchasing assets at a discount?
Explain all of the risks to me
How long is my money locked in for?
What are all the fees and commissions?
After weighing all of the above options, this particular investor decided to develop a well-diversified portfolio of exempt market products. He now has representation in the following:

Private Apartments

Private Equity

Farmland

Conventional Energy Assets

Lending Strategies

Solar Energy Assets

By using the same amount of money that would be invested in the other options, this investor is currently diversified across 6 unique asset classes, reducing overall risk in comparison. He is also a passive landlord, collecting a monthly rent cheque with no hassle on the apartments. As there are professional managers making all the day to day decisions, his time commitment is almost zero, and he is free to dedicate energies to his consulting business.

While investing in exempt market products may not be for everyone, for this particular investor, it is an ideal fit. This gentleman already has a public stock portfolio to diversify his private holdings. And he is also holding onto some cash, in case circumstances change, or he decides to buy a building or franchise. By keeping some investments public, some private, and holding some cash, this investor is in an ideal situation to set himself up for future investment success. He has created an institutional-style portfolio that is far beyond the plain-vanilla stocks and bonds that most people purchase.

Buying Ecommerce and Internet Marketing Products Or Sevices

Anyone out there looking to start an internet marketing business of some sort must first beware of the landmines that exist to grab the newbie and just take your hard earned cash. These landmines or scams exist in all facets of marketing and for everything you will undoubtedly need to proceed and build a successful online or eCommerce business.

First and foremost be sure to be ready to do your homework and research every part of doing business online. Internet marketing products and all things needed to do business online can and will need some research from eBooks on step by step guides for doing business to hosting, shopping carts to collect your payment, wholesalers, dropshippers, software to help automate your business. Also things like building opt in email list and running your newsletter, autoresponders, mailing list management are also important.

For every marketing product you need watch out for the programs that promise unbelievable results, like 1000s of optin email lists in days and weeks, these programs and promises generally are scams. If it sounds to good to be true It Is! There are great and useful products out there find the ones you can and should trust first. From hosting to software products and eBooks you can find great information and trustworthy products, just do it right the first time and you will not get frustrated and quit or give up on your dream.

From personal experience I was looking for a product some time ago to take advantage of Google AdSense and there are 100s of products out there. Now the one I did some research on sounded amazing and I could build sites with 1000s of pages of original content and rank well in the search engines for. The sales page even showed how these websites ranked for competitive keywords and would get all the search engine traffic you could ever want. When I checked out these statements and looked farther into these domains they were no longer found in any of the big 3 search engines. What this proved to me was that these programs did nothing to impress the search engines for the long haul and that is what an internet business is not just a temporary quick cash grab.

I also visit a lot of forums to see what products and marketing programs that people are talking about. You can learn a lot by joining some of these marketing forums, just do a search for “marketing forums” and join. On and AdSense forum I had been visiting for some time I read a long sad post by a marketer who had been making 1000s every month from Google and all of a sudden his income dropped to $800 in one month. Now he was getting his checks from Google by Fedex I believe and you only get that treatment if you are making over $10,000/month. Obviously his sites built the fast, easy way no longer impressed the search engines. So like I said do it right the first time and stay in for the long haul.

Obviously there are many great and trustworthy products from hosting to ebooks and more out there, just find the right ones by doing your homework. Check out review sites and forums and ask questions of members on certain products or services you are interested in. Most people are more than willing to give advice or their results good or bad for any product you may be interested in. There are great review sites out there that you can visit and read reviews that are unbiased and that you also con give your own reviews on products and services that you have purchased or used to help other newbies to this business and help them not make the mistakes or send them on the right road to success in the ecommerce and internet marketing business.

In closing, do your homework, research and most of all remain focused on your dreams goals and never quit it may take some time, but if you persist and do the hard work into anything you try you will succeed in the long term. Imagine how you will feel and be able to brag to your family and friends that your efforts have paid off.

Using Social Media to Get Attention for Your Network Marketing Product

When you are marketing your product online, your goal is to get attention to your network marketing product. In this article, I am going to talk to you about using social media to get attention for your network marketing product.

There are different strategies to get your product noticed, but some are more effective than others. One of the things you do not want to do is become an infomercial channel for your product. Make sure you are getting attention is a good way.

Tell Stories

Every product has testimonials and stories about how it has helped someone. The more stories you learn and tell, the better results you are going to have. Remember that facts tell and stories sell.

Educate People

Educating people on how your product or service is going to help their lives is going to help you get sales quicker than just plastering your link up all over the place. You can educate people by telling them ways the product works to help them achieve the goal they are trying to reach.

You can also give general information about a solution to their problem and then recommend the product that you use at the end so they will be able to purchase it and get a solution to their challenge as well. Don’t hold out on people when you know you have a good product that is going to help them.

Conclusion

The Internet and social media are powerful tools that can help you get the message out to people about the solutions you provide but you need to learn some skills so you can help people see the value in your product or service.

Are High Ticket Internet Marketing Product Launches Getting You Down?

If you are like me and you have signed up for lots of opt-in Internet marketing lists, you have probably been bombarded with lots product launches where that spots are limited and the prices are way out of reach for the average person.

It seems like every email contains some type of promotion for the “latest” product rage promoted by famous Guru’s of Internet marketing.. Sometimes I get so many, I simply have to stop reading my email in order to get anything done.

I do have to admit, many of them are killer products from well respected professionals, but many people who are getting the emails for these promotions just don’t have the budget to fork over to get involved.

If you are a victim to the latest high ticket product launches, don’t get discouraged if you can’t afford to pursue them. If you are one of these victims, are some things to keep in mind to help keep you from getting discouraged.

Lay a foundation for Your Business
One of the most important things you need to do is to lay a foundation for your business. Many aspiring net entrepreneurs are trying to make money and have no idea how they want to do it.

The main thing you need to keep in mind is that in order to make money, you either have to sell a product, service or advertising. Focus your energy on one of these things first, then build on it using the information successful marketers provide for you.

Once you lay a foundation, it will give you more direction. This way, when the next marketing craze comes around, you won’t be starting all over again. Instead, find out how the marketing product relates to your business, then get as much free or low cost information on how to use it as you can.

Search for Low Cost Solutions Related to the Product Launch

When you get information on a product launch, you shouldn’t feel like the only solution to the problem costs tons of money. Most of the time there is more than one solution available to the problem they are attacking.

Some of the high ticket products are even based on concepts and methods that have been around for years. In this case, these courses and products are simply “rejuvenated” by marketers who have successfully used them recently.

The high ticket item may offer a killer solution, but if you can’t afford it, you have simply to start somewhere else. Just look for other free or lower cost articles, ebooks, courses or software solutions. Most of the time, there is something out there that will help you.

Believe me, there is always some alternative out there that will help you. You will have to do some research to find the lower costs solutions, but your research will pay off.

It helps to have money when starting an online business of any type, but you have to remember, many of the popular marketing gurus did not have tons of money to start their business. Instead they followed simple rules and tactics and did simple testing to find out what works, and then they build on it over time.

Today, you should have an even easier time they did starting your online business because there is a lot of free information and low cost tools to help you get started that were not available when most of the popular marketers got started.

So if you are getting email after email of the latest high ticket Internet marketing product, don’t get discouraged. There are still lots of opportunities to create a successful online presence. It’s just that it may take a little work before you can get there. And once you start to make a little cash, you can save up for some of the high ticket courses or marketing seminars which will allow you to meet potential partners that will further your success.

If you are experiencing the “High Ticket Internet Marketing Course Blues”, use some of the simple tips above to help you stay motivated and to help keep you on track to a successful Internet marketing venture.