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.

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