How We Generate Infinite Returns Using OPM & OPT

Hi everyone.

As you may know by know, my wife Amanda and I work from home building multiple streams of income using the power and leverage of the internet. We have a network marketing business, an affiliate marketing business, and also we do a bit of website flipping for profit.

Our “bread and butter” business is our Second Life land business. We started the business in September 2007, spent months getting it into profit, and since then we have been expanding the business and enjoying the rewards!

Everywhere we go people are interested in that business more than any other, especially when we truthfully tell them we are “virtual” landlords.

I just wanted to take a few minutes to share with you a snapshot of our business, and how we are using Other People’s Money and Other People’s Time to generate infinite returns.

The world of Second Life has many different types of land, but for this post I will focus on what is known as a sim, which is basically a virtual island. The core of our business is taking each island and renting it for a net positive cash flow of roughly $50 per month.

There are different ways we can acquire one of these islands, but the most straightforward way is to purchase one for “retail” directly from Linden Labs, the creators of Second Life. The retail cost of one of these islands is $1000 USD, with an ongoing maintenance cost of $295 per month.

Let’s say we wanted to purchase one for $1000, and take the $50 per month as profit.

What would our return on investment (ROI) be?

In this case, the return is 5% per month, for a 60% return per year! Not too shabby right?

What could we do to improve this return?

How could we possibly do better than 60% ROI?

Well the easy and obvious answer is to use borrowed money for the initial purchase (OPM). If we are able to create the same investment, and still put cash in our pocket every month, then we have in effect created an Infinite ROI.

Let’s say we go to an investor, who we shall call Mr. Visa. We agree to pay our investor a generous 3% payment monthly on his initial $1000 investment. So, we pay Mr. Visa $30 per month, which still leaves us $20 per month to put in our pockets.

We have now created a $20 per month cashflow out of nothing!

Mr. Visa is getting 36% ROI, while we get an Infinite ROI.

Who has the better deal?

We even have room in the deal to hire help (OPT) to manage our investment, collect the payments, and make sure we get paid!

If these numbers don’t excite you, add a couple of zeros.

Let’s say you invest $10,000, and we agree to pay you $300 per month cash flow.

You are now getting the 36% return we were going to pay Mr. Visa!

In the meantime, we created a passive, ongoing, residual income of $200 per month for ourselves.

As hard as it may be for you to believe, this example is actually a worst case scenario for us in our Second Life land business. We have some islands that generate over $100/month cashflow each, and we currently average aprox $75/month/island.

This use of OPM and OPT allows us to concentrate on building other businesses and increasing our passive cashflow, while knowing that our essential expenses are covered by our “bread and butter” business.

This is called Leverage.

How can you apply the power of leverage in your own life and business?

Can you find ways to create Infinite Returns on your Investments?

Have fun, good luck, and let me know what you think!