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Posted about 7 years ago

Infinite Return on Investment? Yeah, right!

In today’s low rate environment, it is not very believable when someone tells you they are achieving an infinite rate of return with virtually no risk.“Too good to be true” is what 99.9% of people will say and immediately turn their brain off to the very possibility of achieving an infinite return.But is it really possible?

To tell you the truth, I would have been one of those people not too long ago.As a banker, when you are managing a $20 million loan portfolio of depositor’s money, you are happy to get a return of 1% over the Wall Street Journal Prime Rate for the bank (in current terms, the Prime rate is 3.75% so add 1% to that and you would be getting a 4.75% return for the bank before expenses).

Bond investors don’t get anywhere near that in today’s rate environment with the ten-year Treasury currently yielding 2.48% if held to maturity.So, I totally understand when folks don’t believe it is possible to achieve an infinite return which is basically any return on zero dollars invested.But wait!If you actually have experienced it, then you cannot deny that it is possible, right?

Here is the deal in a nutshell.If you can raise the funds for an investment and then the investment turns out to be profitable with a return of the original amount invested within six months or less (plus a profit) then you, too, can experience an infinite investment return!

Raising money for investments is very achievable for many people if they spend the time to develop the skill set and deliver on the promise of infinite returns.Working with people that are frustrated with the paltry returns on their safe money at 1% (or below) is a fairly simple task if you can take these funds and return a massive increase over the miniscule amount of interest they have received in the past (going on) ten years now.

Here is a recent, current example of an infinite return on an investment.As a person that raises capital for a real estate purchase, you (or your team) are tasked with the responsibility of finding a property at an excellent, below market price.When you have a team that is proficient at finding good real estate deals with cash on hand to make the purchase, knowing the skilled tradesmen who can fix the property up to the proper standards, and the property can be marketed to the correct target audience who have the need, desire, and ability to purchase (or lease) the property, then the return is almost a foregone conclusion.

In a recent instance, our team purchased a foreclosure for $45,000 but already had a buyer lined up to purchase it from us for $103,000 (after repairs of $20,000) whereby they put $13,000 down and we financed the balance.My job was to locate the investor with enough cash to purchase and renovate the property and, once the buyer moved in, get a bank loan to replace the investor capital so in the end, we had zero dollars of our money invested in the property in less than three months from start to finish.

The total amount of time needed to complete my side of the transaction was less than 30 minutes and I did not have to put any of my own money into the transaction because A) we had developed a successful track record with a capable team leader that knew the market and could find great deals and B) we had developed a system we could duplicate over and over again with new investors whereby we could “plug them in” to a house purchase and they could go about their lives not worrying about doing any of the work which appeals to people with No Time but they have plenty of money (like a dentist, for example).

Now you are not going to get rich doing one house.But as I say to my investor’s, “if I was a Major-League baseball player and each and every time I got up to bat I got onto first base without fail, I would guarantee you that I would be in the baseball Hall of Fame!”Think about it, a base hit 100% of the time is not very sexy.People see it all the time but they have never seen someone do it every game for their entire career, right?

Also, think about this.As boring as a base hit can be, if each player only got on first base (but advanced the runner ahead of them by one base) then by the time the fourth batter got up, every single base hit after the third batter would equal a home run!Consecutive base hits that keep going are rare but when they happen in baseball, the fan base is fired up and the opposing pitcher is relieved of their duty.

Infinite returns are possible if you put together an All-Star team of players and each team member can execute their portion of the plan.I have seen this repeated over and over again so I know, for a fact, that it can be done.Once you can experience this for yourself firsthand, there is no going back to the “Old School” way of making money on your money (or time).One percent does not cut it anymore!



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