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GOLD! From 0 To $240,000 Per Year PROFIT In 18 Months

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richardd

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Congrats @richardd, really fun to watch you work. You'll soon need to update the subject of this thread to $264,000 in 19 months. :)
5 new businesses, purchased all in the past 6 months! Not bad! Thanks.
 

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richardd

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Oh wow! Congratulations!

Alright, now it's time to show your secret sauce so TFFers can model after you....
Lol, there is no secret sauce. It's all laid out in this thread. The playbook is written. Honestly, everything I've done up to this point like raising capital, setting up a strategy, targeting businesses based on that strategy, and then executing the simple strategy is all in here.

For the people that have read this thread, let me know if this all makes sense. And if there are any grey areas, or you're not sure about certain details, pm me. Lots of people have already done so with their thoughts, what businesses they have targeted, and asked for my opinions on those opportunities. Just get out there and start looking even if you are window shopping. You can save money in the meantime.

But before you start targeting, again make sure you come up with your criteria of what your future business should satisfy. Then find those opportunities, and get back to me. Don't let lack of capital, lack of experience, or lack of even confidence stop you from starting to look for purchase opportunities.

I sound like a commercial! But I promise you, I'm not selling you anything. Hell, I'm spending a lot of time working with so many of you. But I'm not asking for any money or financial gain in return, nor will I ever.

The only thing I'm selling you is frankly a way for you to enter the fast lane. And my only compensation is to see you succeed.
 
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LittleWolfie

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Lol, there is no secret sauce. It's all laid out in this thread. The playbook is written. Honestly, everything I've done up to this point like raising capital, setting up a strategy, targeting businesses based on that strategy, and then executing the simple strategy is And if there are any grey areas, or you're not sure about certain details, pm me. Don't let lack of capital, lack of experience, or lack of even confidence stop you from starting to look for purchase opportunities.
Epic, keep smashing it!
From my phone. This is my countdown to the number of days, hours, and minutes before I get to retire from consulting and the slow lane. I look at these numbers multiple times a day to keep me motivated.

View attachment 28226
Well done. Looking forward to hearing more from you. Thanks again for the offer of PMs.
 

payingkarma

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From my phone. This is my countdown to the number of days, hours, and minutes before I get to retire from consulting and the slow lane. I look at these numbers multiple times a day to keep me motivated.

View attachment 28226
Awesome to see someone finally looking at "Exit 69"

Thanks for your PM offer - so generous of you. I'll definitely pick your brain once I find something useful.

I did spend a few days looking through flippa but to no avail. Usually, they are asking for 30+x earnings, that's way too much that I was looking for.

Looks like you are established and you get the deals handed over to you, but can you tell me where to source "sites for sale"
 

LittleWolfie

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Awesome to see someone finally looking at "Exit 69"

Thanks for your PM offer - so generous of you. I'll definitely pick your brain once I find something useful.

I did spend a few days looking through flippa but to no avail. Usually, they are asking for 30+x earnings, that's way too much that I was looking for.

Looks like you are established and you get the deals handed over to you, but can you tell me where to source "sites for sale"
I think a lot of them have high multiples because most of the flippa buyers are trying to do earn outs.


Have you tried saying I will offer you 7x earnings cash?
 
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John_Wick

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I think a lot of them have high multiples because most of the flippa buyers are trying to do earn outs.


Have you tried saying I will offer you 7x earnings cash?
I have. But, just for one asset. They seller’s broker wasn’t interested in the offer and insisted at least 75% down payment.

I have been looking for a few deals - one was some sort of analytics and was bought while I was negotiating, one was a VPN business but decided to grow it more, one was recruitment and didn’t get back to me.

A couple others look less and less interesting the more DD I do.

My learnings are:
1. It’s useful to have your own investment criteria like Richard’s because then it reduces the risks of buying shitty assets
2. I think pure financial investment (based purely on ROIs) might be harder if one is not familiar with the business model and what customers are actually paying for. In OPs case, it seems most are strategic (except maybe the blog), and that the OP knows how to add more value. I guess eventually the more I look the more I know what makes more sense for me.
3. I think one might just need to be more resourceful in sourcing deals since everyone here is probably looking on Flippa. And, there are only so many people willing to sell their money tree because they need to fund another venture or need to focus on a singular project.

It’s been great learning though.
And, thanks to Richards offer for PM. It’s really amazing to have someone like you to offer guidance and updates to give us hope and keep trying.
 
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richardd

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I have. But, just for one asset. They seller’s broker wasn’t interested in the offer and insisted at least 75% down payment.

I have been looking for a few deals - one was some sort of analytics and was bought while I was negotiating, one was a VPN business but decided to grow it more, one was recruitment and didn’t get back to me.

A couple others look less and less interesting the more DD I do.

My learnings are:
1. It’s useful to have your own investment criteria like Richard’s because then it reduces the risks of buying shitty assets
2. I think pure financial investment (based purely on ROIs) might be harder if one is not familiar with the business model and what customers are actually paying for. In OPs case, it seems most are strategic (except maybe the blog), and that the OP knows how to add more value. I guess eventually the more I look the more I know what makes more sense for me.
3. I think one might just need to be more resourceful in sourcing deals since everyone here is probably looking on Flippa. And, there are only so many people willing to sell their money tree because they need to fund another venture or need to focus on a singular project.

It’s been great learning though.
And, thanks to Richards offer for PM. It’s really amazing to have someone like you to offer guidance and updates to give us hope and keep trying.
John, I thought about publicizing where I go to find deals, like Flippa for instance, and then by doing so, it will create competition for me to land deals. That probably is true to some respect. But I don't think it matters to me if I lose out on a possible deal that someone else on here finds first. There is always another one that comes along. It's been happening month in and month out since I started investing earlier this year.

Interestingly, often times I'm strongly attracted to a deal with some mindset that I gotta have it. I have to remind myself that there is no deal that I really have to have. If I find one, I way more often than not get the deal done since I can act fast. Sellers love that.

I don't have to negotiate like, I'll buy your business for X times revenue or profit. Nor do I do an earn out mechanism. I rather have full control when I take control.

As for understanding sellers' business models, yes I find businesses that I have a pretty good idea how they make money. Most of it is standard stuff like selling a license or selling a monthly service or even ad dollars per 1000 views. The more complex business models I shy away from.

In the end, I still find deals on Flippa and other brokerage sites that satisfy my ROI requirement. I know it sounds like finding a needle in a haystack, but I find them all the time, and they are not hidden on Flippa or many of the other web sites.

PM sometime and I'll share with you some that I've found recently. I won't be investing in any right now or the very near future since I'm now so busy with these businesses and my consulting, but I'll show you nonetheless.
 

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John_Wick

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John, I thought about publicizing where I go to find deals, like Flippa for instance, and then by doing so, it will create competition for me to land deals. That probably is true to some respect. But I don't think it matters to me if I lose out on a possible deal that someone else on here finds first. There is always another one that comes along. It's been happening month in and month out since I started investing earlier this year.

Interestingly, often times I'm strongly attracted to a deal with some mindset that I gotta have it. I have to remind myself that there is no deal that I really have to have. If I find one, I way more often than not get the deal done since I can act fast. Sellers love that.

I don't have to negotiate like, I'll buy your business for X times revenue or profit. Nor do I do an earn out mechanism. I rather have full control when I take control.

As for understanding sellers' business models, yes I find businesses that I have a pretty good idea how they make money. Most of it is standard stuff like selling a license or selling a monthly service or even ad dollars per 1000 views. The more complex business models I shy away from.

In the end, I still find deals on Flippa and other brokerage sites that satisfy my ROI requirement. I know it sounds like finding a needle in a haystack, but I find them all the time, and they are not hidden on Flippa or many of the other web sites.

PM sometime and I'll share with you some that I've found recently. I won't be investing in any right now or the very near future since I'm now so busy with these businesses and my consulting, but I'll show you nonetheless.
Thank you so much for replying. And, most importantly, for sharing your perspective on this!
 
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richardd

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Awesome to see someone finally looking at "Exit 69"

Thanks for your PM offer - so generous of you. I'll definitely pick your brain once I find something useful.

I did spend a few days looking through flippa but to no avail. Usually, they are asking for 30+x earnings, that's way too much that I was looking for.

Looks like you are established and you get the deals handed over to you, but can you tell me where to source "sites for sale"
Sites that I search for deals:

Flippa
BizBuySell
WebHostingTalk
TWorld
 
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richardd

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Someone recently came to me with the idea of going into a partnership when purchasing a business. My initial thoughts were that I hated the idea. One of my criteria is to retain control, but when you go into a partnership, you lose some control. But the more I thought about it, the more I liked the idea. Most importantly I thought that if a partnership could be structured that I retained the control, but the other partners received value, then maybe it could work. And just as important, as long as there was an exit strategy that was agreed by all, it could be even more workable.

So I'm throwing an idea out there for everyone. I see a business that I can purchase in 6 months, but I don't have the capital to get it now. I love the business a lot, not because it's exciting or sexy, but because the business model is simple, the barrier of entry is great, and the product/service is in demand and used by thousands. I'm going to get it in 6 months if it's available. It's a no-brainer for me. But there is a risk that it won't be available then. Although I have a feeling it will still be on the market because it is so mundane.

I think I can offer $105,000, but should be able to get it at $110,000. I'd disclose the ROI, but I have signed an NDA, so I won't disclose that. But for the sake of example, let's say the business makes $50,000 a year in profit. If I got a consortium of investors who equally invested the same amount, and then shared that percentage of the profits, the deal might look like this:

1) 9 other investors contribute $10,000
2) I invest the rest, maybe $15,000 or $20,000 depending on the negotiated sales price
3) All investors including myself receive 10% of the profits: for this example each person including myself would receive roughly $416 per month
4) I have the option to buy out each investor of their share at the $10,000 amount any time after 6 months, thus receiving their corresponding profit share moving forward
5) I retain full control of business operations

Does this type of deal seem fair to the other 9 investors? What they get is profit sharing, and a return of their initial investment upon buy-out. I'm curious to know what other people think of this type of deal structure.
 

Doctor.IM

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Someone recently came to me with the idea of going into a partnership when purchasing a business. My initial thoughts were that I hated the idea. One of my criteria is to retain control, but when you go into a partnership, you lose some control. But the more I thought about it, the more I liked the idea. Most importantly I thought that if a partnership could be structured that I retained the control, but the other partners received value, then maybe it could work. And just as important, as long as there was an exit strategy that was agreed by all, it could be even more workable.

So I'm throwing an idea out there for everyone. I see a business that I can purchase in 6 months, but I don't have the capital to get it now. I love the business a lot, not because it's exciting or sexy, but because the business model is simple, the barrier of entry is great, and the product/service is in demand and used by thousands. I'm going to get it in 6 months if it's available. It's a no-brainer for me. But there is a risk that it won't be available then. Although I have a feeling it will still be on the market because it is so mundane.

I think I can offer $105,000, but should be able to get it at $110,000. I'd disclose the ROI, but I have signed an NDA, so I won't disclose that. But for the sake of example, let's say the business makes $50,000 a year in profit. If I got a consortium of investors who equally invested the same amount, and then shared that percentage of the profits, the deal might look like this:

1) 9 other investors contribute $10,000
2) I invest the rest, maybe $15,000 or $20,000 depending on the negotiated sales price
3) All investors including myself receive 10% of the profits: for this example each person including myself would receive roughly $416 per month
4) I have the option to buy out each investor of their share at the $10,000 amount any time after 6 months, thus receiving their corresponding profit share moving forward
5) I retain full control of business operations

Does this type of deal seem fair to the other 9 investors? What they get is profit sharing, and a return of their initial investment upon buy-out. I'm curious to know what other people think of this type of deal structure.
Check Groupbuy Signup | OnFolio, it's pretty much what they're doing!
 
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richardd

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Check Groupbuy Signup | OnFolio, it's pretty much what they're doing!
I'm brilliant! Just kidding. That's an interesting idea if I say so myself. But it does make sense that someone else is doing it.

I've noticed in other threads people alluding to this type of partnership as well. Have you thought about doing something with Groupbuy? With a lot of people here, they might not have enough capital to invest in better businesses, this might solve their problem.

It would solve mine, although again I can just wait 6 months to save the capital, and then invest fully. But I also thought it would be a way for others to get in on the action sooner. Maybe not partner with me, but partner with each other.
 

biophase

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Someone recently came to me with the idea of going into a partnership when purchasing a business. My initial thoughts were that I hated the idea. One of my criteria is to retain control, but when you go into a partnership, you lose some control. But the more I thought about it, the more I liked the idea. Most importantly I thought that if a partnership could be structured that I retained the control, but the other partners received value, then maybe it could work. And just as important, as long as there was an exit strategy that was agreed by all, it could be even more workable.

So I'm throwing an idea out there for everyone. I see a business that I can purchase in 6 months, but I don't have the capital to get it now. I love the business a lot, not because it's exciting or sexy, but because the business model is simple, the barrier of entry is great, and the product/service is in demand and used by thousands. I'm going to get it in 6 months if it's available. It's a no-brainer for me. But there is a risk that it won't be available then. Although I have a feeling it will still be on the market because it is so mundane.

I think I can offer $105,000, but should be able to get it at $110,000. I'd disclose the ROI, but I have signed an NDA, so I won't disclose that. But for the sake of example, let's say the business makes $50,000 a year in profit. If I got a consortium of investors who equally invested the same amount, and then shared that percentage of the profits, the deal might look like this:

1) 9 other investors contribute $10,000
2) I invest the rest, maybe $15,000 or $20,000 depending on the negotiated sales price
3) All investors including myself receive 10% of the profits: for this example each person including myself would receive roughly $416 per month
4) I have the option to buy out each investor of their share at the $10,000 amount any time after 6 months, thus receiving their corresponding profit share moving forward
5) I retain full control of business operations

Does this type of deal seem fair to the other 9 investors? What they get is profit sharing, and a return of their initial investment upon buy-out. I'm curious to know what other people think of this type of deal structure.
Doesn’t seem fair to me. They invest and you buy them out at what they put in?

What if the business goes downhill? Can they force you to buy them out at $10k also?

They have all the risk and no reward. I wouldn’t do a deal like this.
 
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richardd

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Doesn’t seem fair to me. They invest and you buy them out at what they put in?

What if the business goes downhill? Can they force you to buy them out at $10k also?

They have all the risk and no reward. I wouldn’t do a deal like this.
Then probably add a guaranteed buy out. Initial investment guaranteed. So the reward for them is profit sharing till buy out. Don't need to run the business since it's managed by me. Guaranteed initial investment returned. Since I invest more money ($15,000 or $20,000) than others ($10,000), my benefit is buy out options, while only receiving the same profit share of 10% for this example.
 
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CareCPA

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Then probably add a guaranteed buy out. Initial investment guaranteed. So the reward for them is profit sharing till buy out. Don't need to run the business since it's managed by me. Guaranteed initial investment returned. Since I invest more money ($15,000 or $20,000) than others ($10,000), my benefit is buy out options, while only receiving the same profit share of 10% for this example.
I'd tie the buyout to valuation.
I'm not going to invest $10k in your business for 10%, and then get bought out at $10k if the business grows and I now own 10% of a million dollar business.
You would then structure it to take a management fee each month so you're getting paid for your effort.
You seem to be keeping all the upside for yourself.
 

Kid

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Someone recently came to me with the idea of going into a partnership when purchasing a business. My initial thoughts were that I hated the idea. One of my criteria is to retain control, but when you go into a partnership, you lose some control. But the more I thought about it, the more I liked the idea. Most importantly I thought that if a partnership could be structured that I retained the control, but the other partners received value, then maybe it could work. And just as important, as long as there was an exit strategy that was agreed by all, it could be even more workable.

So I'm throwing an idea out there for everyone. I see a business that I can purchase in 6 months, but I don't have the capital to get it now. I love the business a lot, not because it's exciting or sexy, but because the business model is simple, the barrier of entry is great, and the product/service is in demand and used by thousands. I'm going to get it in 6 months if it's available. It's a no-brainer for me. But there is a risk that it won't be available then. Although I have a feeling it will still be on the market because it is so mundane.

I think I can offer $105,000, but should be able to get it at $110,000. I'd disclose the ROI, but I have signed an NDA, so I won't disclose that. But for the sake of example, let's say the business makes $50,000 a year in profit. If I got a consortium of investors who equally invested the same amount, and then shared that percentage of the profits, the deal might look like this:

1) 9 other investors contribute $10,000
2) I invest the rest, maybe $15,000 or $20,000 depending on the negotiated sales price
3) All investors including myself receive 10% of the profits: for this example each person including myself would receive roughly $416 per month
4) I have the option to buy out each investor of their share at the $10,000 amount any time after 6 months, thus receiving their corresponding profit share moving forward
5) I retain full control of business operations

Does this type of deal seem fair to the other 9 investors? What they get is profit sharing, and a return of their initial investment upon buy-out. I'm curious to know what other people think of this type of deal structure.
I would invest, except for getting bought out after 6 months.
If i would invest i wouldn't want to get back to searching for another investment after half year.

Maybe other structure like instead of $416 per month till buyout, then maybe $416 for first one/two years and then $208 per month.
This way you get the upside of getting more after some time and investors would get more long term investment, albeit at a bit reduced rate.
Not sure if that makes sense on your side.
 
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richardd

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This is why I like investing alone. I'd probably tie the buy out to valuation, but then valuation may become an issue. And if I'm managing the business and taking on all the risk since I am guaranteeing the return of one's initial investment, while investing more than others...

Instead it's easier for me to wait 6 months to put an offer on that business, and purchase it by myself. Or negotiate owner financing, which is available. Thanks for the intellectual exercise. It reaffirms my thoughts on it.
 

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Kid

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valuation may become an issue. And if I'm managing the business and taking on all the risk since I am guaranteeing the return of one's initial investment, while investing more than others...
Yeah, having "parnters" sucks. :smuggy:
 

biophase

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This is why I like investing alone. I'd probably tie the buy out to valuation, but then valuation may become an issue. And if I'm managing the business and taking on all the risk since I am guaranteeing the return of one's initial investment, while investing more than others...

Instead it's easier for me to wait 6 months to put an offer on that business, and purchase it by myself. Or negotiate owner financing, which is available. Thanks for the intellectual exercise. It reaffirms my thoughts on it.
Owner financing would be the easiest way.

Or just make it a loan. $10k 6 month loan at 10%
 
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richardd

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Owner financing would be the easiest way.

Or just make it a loan. $10k 6 month loan at 10%
Yeah, I actually started that process. It looks like I can get a deal done with $60K down and $55K financed over 12 months, interest rate pending. I might not be able to get a discount in price due to financing. So, I'm debating whether to wait till I raise all of the capital in about 6 months, or pull the trigger. Thanks for your input, man.
 

biophase

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Yeah, I actually started that process. It looks like I can get a deal done with $60K down and $55K financed over 12 months, interest rate pending. I might not be able to get a discount in price due to financing. So, I'm debating whether to wait till I raise all of the capital in about 6 months, or pull the trigger. Thanks for your input, man.
You’re thinking here makes no sense to me. You are worried about buying the business at $10k more due to financing. So you may wait 6 months.

But the business will make $25k during the 6 months you are waiting.

So buy it now. In 6 months you’ve made $25k and saved $55k. Pay off the loan, you’re up $15k (assuming you paid $10k by not waiting).

I guess that’s only +$2.5k a month. Is that worth it to you?
 

John_Wick

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This is why I like investing alone. I'd probably tie the buy out to valuation, but then valuation may become an issue. And if I'm managing the business and taking on all the risk since I am guaranteeing the return of one's initial investment, while investing more than others...

Instead it's easier for me to wait 6 months to put an offer on that business, and purchase it by myself. Or negotiate owner financing, which is available. Thanks for the intellectual exercise. It reaffirms my thoughts on it.
Honestly, I think your offer is a fair deal.

Maybe just be really upfront about your deal structure. The propositions for the design customer will be:
1. You really just want to get started and be familiar with the process but don't know how
2. You have tried it and didn't get the result you want and you started to question if this strategy even works
3. You understand this is not the fastlane, i.e., you are in the passenger seat and piggybacking on someone's experience, but it's okay because you get to see a pro driving right by your side.

Honestly, I do think it can be a very attractive proposition to the future drivers (not the existing ones). With the right price point (maybe lower to make it more like a crowdfunding project with really clear terms - your terms seem fine enough), it should be framed as primarily as a learning experience first and also a chance to feel the bumpy roads (ups-and-downs) first hand (no guarantee - but if you go down, I go down with you.)

In short, what I'm saying is maybe a $10k will then increase investors' sense of entitlement to want to be able to stay in the ride and get the dividend, whereas a toll-paying passenger don't.

Yes, the thought of increasing the number of investors may sound like a headache, but then people are in the right frame of mind as a passenger and must realize that there is a stop where they need to get off and choose to either hop on another ride or build their own fastlane vehicle.

I might even look at Republic.co to see how startups there get crowd-funding with the level of patreonage / rewards there. But, doing it there or like them may be an over-kill.

It's another game altogether. But, might be something to consider in the long run.

My two cents.
 
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richardd

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Honestly, I think your offer is a fair deal.

Maybe just be really upfront about your deal structure. The propositions for the design customer will be:
1. You really just want to get started and be familiar with the process but don't know how
2. You have tried it and didn't get the result you want and you started to question if this strategy even works
3. You understand this is not the fastlane, i.e., you are in the passenger seat and piggybacking on someone's experience, but it's okay because you get to see a pro driving right by your side.

Honestly, I do think it can be a very attractive proposition to the future drivers (not the existing ones). With the right price point (maybe lower to make it more like a crowdfunding project with really clear terms - your terms seem fine enough), it should be framed as primarily as a learning experience first and also a chance to feel the bumpy roads (ups-and-downs) first hand (no guarantee - but if you go down, I go down with you.)

In short, what I'm saying is maybe a $10k will then increase investors' sense of entitlement to want to be able to stay in the ride and get the dividend, whereas a toll-paying passenger don't.

Yes, the thought of increasing the number of investors may sound like a headache, but then people are in the right frame of mind as a passenger and must realize that there is a stop where they need to get off and choose to either hop on another ride or build their own fastlane vehicle.

I might even look at Republic.co to see how startups there get crowd-funding with the level of patreonage / rewards there. But, doing it there or like them may be an over-kill.

It's another game altogether. But, might be something to consider in the long run.

My two cents.
Interesting idea. Basically setup an investment fund, crowd sourced. You are right about having a higher level of investment will lead to greater entitlement. I think though it might be a great learning experience for people who aren't ready to run the show. I honestly don't know if I'd want the headache. I don't want to be a fund manager / business operator. But I love the learning aspect of it. There are so many people on here that are hesitant to get going. Ideally as you and I have discussed privately, I just want you all to pull the trigger on your own ventures. You learn a ton, make mistakes, but the upside is huge.

The only thing I'm not sure about this type of structured deal as it pertains to learning, as a toll-paying passenger, you won't learn as much as I think you should. Sure you can be a part of the process which deals with due diligence, closing the deal, and a bit of the business operations after closing. But similar to learning from a text book, you won't grasp all the nuances that you'd normally gain from running the show.
 
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richardd

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Jun 11, 2017
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You’re thinking here makes no sense to me. You are worried about buying the business at $10k more due to financing. So you may wait 6 months.

But the business will make $25k during the 6 months you are waiting.

So buy it now. In 6 months you’ve made $25k and saved $55k. Pay off the loan, you’re up $15k (assuming you paid $10k by not waiting).

I guess that’s only +$2.5k a month. Is that worth it to you?
My hesitation is more a combination of things actually beyond a discount of the purchase price. I hate financing. I also hate spending capital with very little left over for emergency spending. I'd be dangerously low on emergency funds by leverage to the max with financing this deal. And on the off chance of default, the owner will have the right to repo the business. That may be an irrational concern for me since my corporation cash flow is excellent now with all the other businesses running successful. But emergencies, personal and business related do happen.

The one business that I financed, my accounting software business, at the time I had a lot of capital to fall back on in case of the new business acquisition failing. Fortunately, it has been doing well from day one. For this business opportunity, I can do financing, and I can realize the +$2500 a month as you stated. Your question is a good one. Is it worth it? Due to my concerns from the previous paragraph, I'd have to say no, it's not worth the risk. In 6 months, I can buy it if it's still available, and it will be within budget without stretching the limits of my emergency fund. If it's not available, no big loss. There will always be another opportunity similar to it.
 

John_Wick

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Read Millionaire Fastlane
Oct 1, 2019
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Honestly, I'm not just concerned about the discount. I'm concerned with


Interesting idea. Basically setup an investment fund, crowd sourced. You are right about having a higher level of investment will lead to greater entitlement. I think though it might be a great learning experience for people who aren't ready to run the show. I honestly don't know if I'd want the headache. I don't want to be a fund manager / business operator. But I love the learning aspect of it. There are so many people on here that are hesitant to get going. Ideally as you and I have discussed privately, I just want you all to pull the trigger on your own ventures. You learn a ton, make mistakes, but the upside is huge.

The only thing I'm not sure about this type of structured deal as it pertains to learning, as a toll-paying passenger, you won't learn as much as I think you should. Sure you can be a part of the process which deals with due diligence, closing the deal, and a bit of the business operations after closing. But similar to learning from a text book, you won't grasp all the nuances that you'd normally gain from running the show.
Honestly, the fact you don't actually want to do it is precisely why I think you will be a good fund manager (think Tom Kirkman in Designated Survivor)...

Yes, the truth is no amount of piggybacking will make up for the experience of letting the rubber hit the road. Ultimately, it's still a matter of experience, personality, confidence, (no having a deep pocket is not - it's all relative. I'm saying this because Richardd has gone go all in with his first venture, whereas I'm a lot younger but was close to confusing being prudent with procrastination or pure indecision or some shit.

Anyways, you are being selfless by saying you don't want to pitch that (learning-by-watching stuff) to investors because you do think "doing is the best way of learning."

I still think there is value to people (though it may just make slowlane people like me delay even more). But, it's our responsibility, may be not yours as long as you are adamant about it...

But, no perfect way out and not trying to solve it. Just want to say just do what seems right to you.
 
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richardd

Silver Contributor
FASTLANE INSIDER
Speedway Pass
Jun 11, 2017
142
657
259
United States
Honestly, the fact you don't actually want to do it is precisely why I think you will be a good fund manager (think Tom Kirkman in Designated Survivor)...

Yes, the truth is no amount of piggybacking will make up for the experience of letting the rubber hit the road. Ultimately, it's still a matter of experience, personality, confidence, (no having a deep pocket is not - it's all relative. I'm saying this because Richardd has gone go all in with his first venture, whereas I'm a lot younger but was close to confusing being prudent with procrastination or pure indecision or some shit.

Anyways, you are being selfless by saying you don't want to pitch that (learning-by-watching stuff) to investors because you do think "doing is the best way of learning."

I still think there is value to people (though it may just make slowlane people like me delay even more). But, it's our responsibility, may be not yours as long as you are adamant about it...

But, no perfect way out and not trying to solve it. Just want to say just do what seems right to you.
I love Tom Kirkland.

John, you personally don't need to get in on this type of deal. I think you're on your way to the driver's seat. I thought about maybe getting an investment group/partnership together, find a deal that everyone can be a part of if they're not ready to take the reigns on their own. The more I think about it, the less I'd want to be a part of the investors, but instead be an adviser. I wouldn't have a financial interest, which I think would be better.

I've been thinking about this more because a lot of people are PM-ing me about wanting to acquire a business, but they don't have the necessary capital to buy a good one in my opinion. I really look in the $20,000-or-more price point. Businesses that are priced below this from my experience are not good opportunities in my opinion due to multiple reasons. So, to solve this problem, at least on the surface, we could create an investment group. The devil is in the details, but this would solve that problem.

There are pros and cons to me not having skin in the game. Some people might want me to assume some risk... sort of an "all in it together" kinda thing. Others might be concerned that if I had financial interest in it, I may have too much control, or I may have self-interest that runs contrary to others.

And then of course, this would be quite a time commitment for me, lol.
 

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