I’ve been reading up a lot on Jay Abraham.
If you don’t know who he is it’s probably time you should. He’s a business consultant for the consultants (let’s put it that way).
But, he’s a big proponent for thinking out of the box (much like Peter Fortunato, Gary Johnston, Andy Teasley and all the other “what box?” real estate guys), and using outside industry ideas to bring breakthroughs for your business.
He was naming off a few of his clients breakthrough ideas and one that caught my attention in particular was how a Porsche-Lover funded a million dollar Porsche dealership.
The story goes as so:
A man in Northern California loved porsches. He never owned one but dreamed of owning one someday.
He found an opportunity, where a small Porsche dealership was selling their entire dealership (sales persons and all) and needed $1 million up front to sell and about another half a million for operating expenses.
He had no money to buy one porsche let alone a dealership full of cars.
But he found a loophole in the Porsche Franchise clause regarding demo cars (something about the number of demo cars you can have), and thought of an idea.
He advertised all over the radio, that anyone who will lend $75,000 toward his porsche dealership, will get loaned one free demo Porsche a year (they must bring it back in a certain amount of time of course), for the rest of their life.
They even get access to huge discounts if they wanted to buy that demo car.
Well, he got more than enough people to fund it, and got himself some great customers in the future as well.
Great part about it, he had no partners, no stock holders breathing down his neck. He became sole owner and only owed the lenders a Porsche every year.
Goes to show… what box?
You need money for you real estate deals?
Well, there’s other ways around it.
Money is found in assets you (or others) already have in their possession. Assets, buying power, value.
Take for example Carnival Cruise.
They started off as a broke family-owned business with one second-hand boat that only had one side painted and only filled half of their rooms every week.
Well, those empty rooms are assets; untapped buying power down the drain every week (about $320,000 worth of rooms not being filled).
So, they went to every radio station, and traded advertising space for those rooms. The radio station would give free advertising space to Carnival, in exchange the radio gets the equivalent value of rooms that they can sell or give off to their audience.
Now, Carnival can advertise their business for free on the radio, but they can also sell off advertising space for cash flow now.
Then they also fill room space with the help of the radio stations selling off tickets (which means they can charge surcharges to break even while making money on the backend off more purchases/gambling within the cruise).
This is how the billion dollar giant of today got started.
With just one idea
Anyway, that’s it for today. I thought I would share to you some brilliant ideas from other industries to get your mind turning on how to fund or buy real estate deals (I know it has for me).
Paul do Campo’s views and opinions do not represent the opinions and views of any speaker of MMTNG.
16059 Begonia Ave
Chino CA 91708
USA
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