Yield Hungry Investors Discover New Real Estate Opportunities Online

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High yield seeking investors are finding exciting new investment opportunities in a $200B online landscape

JP Maroney and his investors have found a new form of real estate online. So, far this new frontier has been delivering strong double-digit returns, with no signs of slowing any time soon.

While the massed has been desperately searching for yield, a few has discovered high returns in the new digital economy. Bonds and CDs may be paying negative net yields, and the stock market as a whole may be so over bloated that price to earnings ratios are a joke. Yet, there are opportunities out there. At least for those willing to adapt to the fast-changing world we live in now.

From Aging Technology to Albert Einstein-Like Epiphanies

JP Maroney started his first company at 19 years old. In the 90s, he was running successful magazine companies, which he successfully exited in 1999. He and his wife went on to launch a video training company for franchises and trade associations. In 2004, Maroney upgraded to the arena of online coaching, and began generating leads online. Out for a walk one evening, JP was thinking over a recent news show on MSNBC or CNBC, in which a top fund manager was talking about the importance of embracing alternative investments, providing they could put a dollar in, and get a reasonable yield out.

This was JP Maroney’s “Eureka!” moment. He gained a new perspective, which has paid off handsomely. He realized he was already investing in online real estate, with great success. He was investing in online lead generation to the tune of around $2.50 per lead, and was easily able to sell those leads at $3-$5, and flip his money for outsized returns and a big IRR every 30 days.

The $200B Online Investment Landscape

The importance of the internet, and the ability to effectively and efficiently get in front of, and connect with consumers, with measurable results verifiable for every dollar spent in marketing is obvious. At least 19 of the biggest and best-established retailers in America are either going bankrupt, or are at least slashing stores and staff, and are cashing out their brick and mortar real estate. They just started marketing online too late. Then we have Amazon, who is leveraging its online prowess to dive into brick and mortar assets, becoming the largest landowner in Seattle, and taking over Whole Foods with a $14B bid.

Digital marketing is already a $200B business and growing. It’s already bigger than TV advertising, including the Super Bowl. Most entrepreneurs and VCs look for at least $1B to $2B markets as a measure of a good industry to be in. This is already 100x that.

43% of respondents in the State of Digital Advertising 2017 survey and report said they increased paid search advertising between 2015 and 2016 alone. eMarketer estimates growth in US digital ad spending to accelerate at 9.9% to 28.4% per year between 2015 and 2020.

Getting Responzive

From realizing he was doubling his money every 30 to 90 days in digital advertising, and realizing he could do it for investors too, JP has delivered double digit returns for others for 4 years straight. His biggest problem has been having to under-promise, as the returns on digital marketing make current bond, stock, and fund yields look like a joke.

Maroney’s B2B facing portal, Responzive, eliminates the need for ‘hope and pray advertising’, and enables businesses from real estate to insurance companies to obtain ready to buy consumer leads, on-demand. JP says that the service is for serious businesses and those serious about scaling quickly, and have an appetite for 5k+ leads per month.

The New Frontier

JP Maroney’s investment firm Harbor City Capital has appeared in Inc. Magazine, and many other major news sites. Harbor City Capital is the investment engine which fuels Responzive, and other digital marketing arbitrage ventures, as well as branching into acquiring and monetizing big data and data centers.

Via an exclusivee phone interview with Realty 411, JP broke the news that the firm is currently acquiring a high profile $100M retail domain, complete with its trademarks, and data on 15M active users. As of July 2017, the firm already had in excess of 1.2B data records in-house, and is generating 4/5M leads per day in different niches and verticals.

Opportunities for Accredited Investors

Harbor City Capital continues to grow quickly, and has just announced a unique opportunity for accredited investors to participate in its success. This is via a 506c filing and seeding funding round. Investors receive preferred shares via a convertible note, with a 5 year redemption period, offering a minimum of 17% returns. However, an IPO could be quite likely within the next 12 to 18 months.

Accredited investors are able to diversify their portfolios into this industry with a minimum of a $50k investment. Though the opportunity closes once the funding round hits $25M.

Summary

Investors are still hungry for yield, and there aren’t many places to find it these days. Digital marketing is one of the biggest and most vital industries today. Those that do it well stand to gain sizable market share, while others fade out. Digital marketing arbitrage and big data offer an exciting apex where these trends meet. One which could dwarf the returns and performance of many other business and investment models.

For more information about online leads for your business visit Responzive.com. Visit HarborCity.com and fill out the contact form for more details on the investment opportunity.

Steve Bighaus: Leveraging Technology to Improve Investor Lending

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By Anita Cooper Investing in property can be frustrating, especially when you’re always searching for good financing options that suit where you’re at as an investor.
Having someone in your corner to provide quality information and advice can help you reach your goals more quickly than going it alone.
As founder of Team Bighaus, Steve’s clients know they can count on him when they need to finance a new opportunity…even when that opportunity is their own place of residence! Steve has a vested interest in property investors’ success…it’s why he does what he does. His number one goal is to become the all-in-one resource for property investors. But as a forward thinking kind of guy, Steve is always on the lookout for ways he can improve his processes to get better results for his clients. One such process is technology…using it efficiently and effectively. techsmall That’s why, after speaking with thirty to forty companies, Steve settled on working with Sierra Pacific Mortgage Company. They understand his goals as a specialist in lending to investors, and they share his vision of using technology to deliver exceptional products for his customers. One exciting development is the creation of a new loan origination system that will allow a borrower’s information to be obtained straight from the source. This will simplify the process for both investors and homeowners and expedite the loan origination process. One particular issue that many fix and flip investors are facing is the challenge of finding eligible buyers for their properties. Steve’s research has found that these investors are experiencing a dismal fall-out rate of 40 to 50 percent! As part of his goal to be a full service company for investors, Steve and his team aspire to preclude any potential problems as early in the process as possible. Using all of the tools at their disposal, they provide quality pre-approval letters towards the goal of improving results for investors. goalsmall Other tools at Steve’s disposal include an automated system for appraisals that will let the lender know whether or not an appraisal is needed, and a great customer relationship system. And as any of Steve’s customers will tell you, Team Bighaus is known for their stellar customer service. Whether you leave a voice message, drop an email or send a fax, you will receive a response the same day. Need a prequal letter and it’s the weekend? Just call Steve…he’ll take care of it. If you were to sit down with Steve he’d tell you to think of him as your banker – someone you can count on to be in your corner. Bottom line, while pricing is important, there’s something Steve and his team can offer that few can…responsive customer service paired with innovative technology to create exceptional products to help investors grow their wealth.  

The Number 1 Risk for Real Estate Investors Now

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By Fuquan Bilal

What’s the top risk that investors in real estate are facing today?

There is still a lot of opportunity out there. There are great deals to be made. Yet, it is also true that it is taking more attention to detail and effort to find the really profitable deals. Market well, in addition to buying, structuring, and managing right, and you’ll be okay if you have good deal sources. However, there’s real risk.

The number one risk in the real estate market today is that 90% of investors have no plan for sustainability. None. Some may not even know what that means if you ask them.

The vast majority of real estate agents and investors in the market now are very green. They’ve only experienced the business during the great bull run we’ve had since 2008 and 2011. Honestly, while I’d like to say I’m pretty smart or talented, the truth is that you couldn’t really not make money in real estate for the past 10 years. It’s been so ridiculously easy. Anyone could do it, and they have.

That’s great for them. I love to see people succeed. There are a lot of guys and gals who have gotten into real estate in the last few years and haven’t only flipped houses themselves, but have been building spec homes, doing Airbnb, amassing a few hundred rental units, and then either offering turnkey properties or teaching others as newly minted gurus.

Some of these people really do know their stuff, but most have just been riding on luck. Worse, they either don’t believe a correction is coming, keep saying we’ve got another 12 to 18 months (which they’ve been saying for more than 18 months), or are seriously minimizing how impactful the next correction will be.

Here’s the real problem. They have no plan to hold things together when the market corrects, and if you’ve been watching the data, some markets are clearly correcting already, and have been for over a year. So, many are paying too much for properties, are basing their values and business models on rents and a resale market that isn’t there, and don’t have the reserves to survive a temporary crunch. They owe too much, and are only a month or a few away from going bankrupt if cash flow tightens up.

Now, it’s no secret that you can both make money at the top of the market, and that our most famous billionaire investors are those who made their wealth when everyone else thought the market was at its ugliest. The difference is in being prepared and pricing things right.

What can investors do to beat this risk?

  1. Before investing with anyone, ask what plan they have for sustainability
  2. Know your real estate and economic cycles (history repeats itself)
  3. Stay in tune with the market data, and what’s really happening out there
  4. Know the value before you invest
  5. Look for value, don’t speculate

Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund

The 3 Things Investors Need Most in 2019

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By Fuquan Bilal

Do you have the three things you need most out of your investing for this year and beyond?

Many are finding it hard to make sense of the market right now. The media headlines proclaim the economy is awesome and supercharged with growth and low unemployment. Yet, the hard data and other signals suggest there are some corrections in the works. The bottom line though, is that you need these three things to get you through.

1. Passive Income

Time is the most precious and scarce resource we have. The only way to really get more time is with passive income. We can only become so productive. Then it is up to passive investments to make money so we can spend more time on other things. That’s true whether you are already making millions a year, or are in a high paying career, but are still trading your time for a wage. This is going to be even more critical over the next couple of years. And it doesn’t matter whether or not you own rentals right now, or you think your company is well insulated from a recession. If you’re not getting truly passive income, then it may be time to consider a fund or other vehicle.

2. Downside Protection

Who knows, we may really be in the best economy ever, and real estate prices, stock values and incomes might just keep going up. Of course, the odds are that there is some type of temporary correction in the works. That means it’s just smart to have some tangible, underlying hard assets and to be overcollateralized in order to protect wealth and capital during the months and years ahead.

3. Stable Performance

No single asset is going to perfectly and consistently perform the same forever. And it’s those fluctuations that are really tricky and usually come at the worst times. By diversifying and harnessing great management, we can keep our total portfolio performance steady, and yet without being so over-conservative that we end up with negative yields.

We believe we’ve achieved all this, and the ability to future proof your portfolio through our hybrid fund. Check out how we’re doing it today…

Investment Opportunities

Find out more about investing in secured debt and real estate, go to NNG Capital Fund