Monthly Archives: July 2007

Reducing Debt Accelerates Investment Opportunities

The most fundamental aspect of personal finances may be the simple “Rich Dad” addage, “Make sure your assets outweigh your liabilities.” Okay, simple enough.

I also like this little Saturday Night Live skit on eliminating debt that Steve Martin so accurately portrays.


Obiviously there are some things that do require debt. A modest home, a good education, transportation in some cases, and emergency circumstances. I’ll also admit that as an entrepreneur I sometimes find myself stretching the envelope for a start-up business… (I generally chalk it up to the “good education” category.)

There’s an interesting company based in Utah that guarantees to help people payoff their mortgage fast. This company, United First Financial offers a Money Merge account. From what I can gather, it is an investment group where people invest their mortgage money and pay off their principal faster with the returns.

This concept is great, but does offer some concerns. What about the security of that money? What happens if investments don’t pay off, or we suffer another strong recession? Participants in these programs need to make sure that their mortgage money will go towards paying off their principle every month. Some programs may entail a “float”, a period of delay in payments.

There is no question however that proper mortgage finance, such as making an extra yearly payment or carefully participating in mortgage investment opportunities can quickly reduce your debt and accelerate your ability to invest in your own assets. At least you can get some answers to questions you might have at the United First website.

Happy Independence Day!

Today was a fun little adventure. I had the opportunity of volunteering in the Utah, Provo, Freedom Festival as an Announcer for KSTAR 96.7 FM and KSTAR 1400 AM. It was a great opportunity to see the Grand Parade and also drive around in a brand-new 2007 Toyota Tundra double cab truck. (Perhaps not the greatest symbol of American patriotism :) but an excellent truck none the less.)

The Tundra was extremely light weight, but still packed an impressive amount of torque off the line. I understand the decision to make things lighter weight was in large response due to the number of women and baby boomers purchasing full-sized trucks, but looking for something a little easier to handle.

Brent Brown donated 10 trucks to be used for Announcing in the Parade and nearly a dozen more that filed through the parade. A great little stunt for additional publicity on the part of Brent Brown Toyota in Provo.

There were about 3,500 people attending my section of the parade. Coordinating commercials, announcing floats and working with audiences and changes in the scheduling was challenging, but also a lot of fun. It is always impressive to see and feel the immense energy that comes from these types of assemblies.

Great Blog Tools for Beginning or Advanced Internet Entrepreneurs

I attended a fun opening meeting for a blog incubator group called, Incublogger. It was a lot of fun to meet energetic and excited internet entrepreneurs. I really enjoy being surrounded by talented, ambitious and community minded people.

In addition to learning about the basics of how to blog, there were some very helpful hints for more advanced bloggers. I would certainly recommend that beginning or advanced bloggers, or just readers interested in blogging should check it out.

One of the fun tools they discussed was Blog Desk. It is a free and fun tool to improve your website and simplify some of the more difficult aspects of design and content setting.  (like inserting this image :) )

Mortgage and Real Estate Entrepreneurship…

A friend recently asked me to evaluate an interesting Utah Business Opportunity. Like many proclaimed self employment opportunities in Utah, this business is perhaps a little vague at first glance, offers incredible returns, but requires that you sign up and speak with a representative to get more information.

Although it is difficult to really see the entire model from the website, my initial research leads me to understand that this is a multi-level marketing company that sells a promotion package to refinance mortgages my making minimum payments and investing the remainder in their sales packages. It should be noted that I have signed up for their online seminar, but until I get cleared/contacted for the link, this review needs a follow-up…

Anyone who knows me, also understands that I will defend multi-level-marketing as a legitimate, if not more specifically, an effective form of marketing sales and distribution. There are however some basic economics of this utah mortgage business opportunity which a person should be made aware of when making decisions about his or her involvement.

From an economic stand point of this business opportunity a few key indicators should be noted:

First the upside: Mortgages are pre-assigned money and offer big marginal returns for Distributors. Just about everyone has a mortgage. These people are all making scheduled payments on their mortgages. The money is already cut out of their checks budgets and this means that a single sale or sign-up can make a significant difference in your bottom line.

Now some downside: Low barriers to entry in a very regulated industry. Finance can be complicated and involve a large percentage of an individual or family income. I this circumstance low barriers to entry may not be a good thing. This means means fierce competition from relatively inexperienced distributors and significant potential for unprofessionalism. A business that says, no experience required, anyone can do it, means most often that people without experience can and will get involved. This can lead to people skewing the information they recieved to assist in closing a sale. In terms of a basic product and product information that can sell itself this is generally not an issue, family and friends cant get too angry if they don’t lose the desired weight or their hair doesn’t grow back–however, when dealing with something that can be as complicated as home mortgages and investment financing, regulation, professionalism and transparancy are a must. Low barriers to entry should raise some red flags to the consumer themself.

Futureopp is certainly not the first company to undertake something of this nature. Another similar model, may be found in the World Financial Group or WFG. They also “empower people from all walks of life” to purchase and invest in financial management tools.

So there you have it, but really check it out yourself and let me know what you think.