Would You Promote This Product?

[crons79]

I would drop the word guarantee from your pitch then. Unless you are prepared to protect investors from loss, then there is no guarantee. And giving them the underlying real estate is not protecting them from loss.

But honestly, why should I invest in your product versus a REIT? Yes, I don't do REITs, but I really don't see much difference between what you are suggesting and a REIT. In that case, I might as well just stick with a commonly accepted investment.

It sounds like you a setting yourself up for lawsuits down the road with how you are pitching this product. How you want to present it, and how it functions are completely different. I imagine the SEC attorney, DOI and banks will give you the same advice. Also, I doubt anyone will sign off on your marketing material as is.

Finally, you aren't looking for insurance agents to sell this, but RRs. Again, why sell this when there are so many better options, that pay better commission too.

First, I am not doing any pitching, promoting, soliciting, or selling of this product right now. Just gathering opinions and research right now. No marketing material for the general public either. So, there is nothing to "sign off on".

I am sure this product will fill a nitch or give someone an alternative to C.D.'s, Money Market Accounts, and Saving Accounts. It is going to be better than some products and worse then others, but still be a good fit for some. Commissions should not be the driving force behind any investment for a client. Hopefully, ours will be a good deal for everyone. (Investor, Agent, and us!)

Thanks for the info on the CMO. I will look into that more.

 

[VolAgent]

Commissions should not be the driving force behind any investment for a client.

Of course it should not be, but if I can offer a superior product that also pays me more, why wouldn't I?

 

[bluemarlin08]

Seriously though... I put people's money into a product that was paying 8% return, backed by real estate, and was invested in an oil and gas hedge fund before

Comparing apples and oranges, you are guaranteeing a 7% return. Better have deep pockets behind that guarantee.

 

[Larry Tew]

crons79, I mean this in a good-natured way, but your proposal reminds me of a character on the 60's tv show "Gomer Pyle". There was a guy named "Friendly Freddy" who would show up every so often, selling stuff from the trunk of his car. Wrist watches, fur coats, land deeds. But anyway, good luck.

 

[crons79]

Thanks...................

 

[VolAgent]

Seriously though... I put people's money into a product that was paying 8% return, backed by real estate, and was invested in an oil and gas hedge fund before

Comparing apples and oranges, you are guaranteeing a 7% return. Better have deep pockets behind that guarantee.

But you see, there is no guarantee. He just feels the investment will perform well enough to kick out 7% returns. If he comes up short, tough luck. If it does better, tough luck. And if it all goes south, 'here is some real estate, good luck moving it'.

Honestly, the more I think about this, just make it a REIT or CMO, go with the existing regulations and call it a day. Sure, you'll be competing with all the other products out there, but at least you won't have to try to explain why yours is different and why investors and RRs should use yours instead.

 

[bluemarlin08]

A guarantee is nothing more than a promise to do something. In that sense then yes. The guarantee will be 7% rate of return

 

[VolAgent]

A guarantee is nothing more than a promise to do something. In that sense then yes. The guarantee will be 7% rate of return

For his sake, I hope he never uses the word guarantee when talking to someone about the product. Someone's lawyer will have him make good on that promise.

 

[bluemarlin08]

I have reviewed more investments over the last 30 years than I can remember, but one thing has ALWAYS been true, if it seems to good to be true, it isn't true. Have watched folks buy into these types of deals and they ALWAYS under perform, the only ones that won were the promoters and commissioned sale crew.

 

[Crabcake Johnny]

I'm excited. 7% guaranteed return and it's "really safe." This is ingenuity at work. Just imagine, he's creating a product that multi-billion dollar insurance and financial companies have not been able to create.