randallg99
Bronze Contributor
I experienced a lot of skeptism a few years ago when I received a phone call from a mutual friend (coincidentally, he is actually friendly with 2 different friends from entirely different parts of my life) and he wanted to sit down and talk with me one on one... Of course I agreed to give him an hour and he probably offered the most hyped up sales pitch you could ever imagine. Not that it was a hard sell, but with the dreams flying out of his mouth and he was talking out every which way believing that he could convince me into joining him on a project that involved much of our own personal resources.
Initially, the meeting was designed to get me to visit on sight a new project, but I delved further and asked many more questions that he was simply not able to answer because it was nothing more than a concept in his mind. I visited the project 3 times in Central America before pulling the trigger after I realized the potential. My skeptism resulted from the potential return... but I kept telling myself there is a big diff between potential and reality... reminds me of a great joke....
eventually, I partnered with him with a couple of contingencies... we would switch areas of concentration and stay coastal. So the group bought 2.5 km of beautiful ocean front property.... but I would not put in my full portion until others were in the project and formal business plans were devised. Gladly, he was able to raise the 6mil (not without ease) and just recently sold equity of this project at a multitude of our investment so now we are able to fund the construction and complete engineering without leverage a premier marina.
My initial investment fully funded my entire retirement as a result of the original hour I gave him to pitch the idea. so, here are a couple of lessons learned-
1. if you believe in the idea, make it work. As a result of just an idea, the rewards are dramatically enhanced in every way- I am much more emotionally, financially, mentally charged than investors looking to participate today. An actual in place program, or project does not reap the rewards as it would if it has not gotten off the ground.
2. go with someone who believes in the idea, concept or product. A stiff suit meeting with charts gives me second doubts about ones faith in the project/product/idea... do background checks on the partners- you won't believe half the shit people try to pull off.
3. Ask a lot of questions, and I mean a lot... do not leave any rock uncovered. My partner confided in me later that I was absolutely exhausting but while he learned so much more about what needed to be addressed, I was asking the questions for my own good to help me undestand my risk.
4. Make sure your a$$ is covered. If any other debt is generated, make sure your name is on top before anyone else is paid in case of default.... accountants and lawyers need to evaluate the agreements... a few grand goes a long way to save your a$$, and so do a few hours of reading the terms/conditions/agreements/contracts....
5. Don't be like Michigan State in 1990(?) finals.... (Jalen Rose?) didn't take the shot at the buzzer to try to win the game. Sometimes you just gotta go for it after you spend time analyzing the risks vs. rewards. If there are any doubts, revisit the table, partners, and ask questions...
Initially, the meeting was designed to get me to visit on sight a new project, but I delved further and asked many more questions that he was simply not able to answer because it was nothing more than a concept in his mind. I visited the project 3 times in Central America before pulling the trigger after I realized the potential. My skeptism resulted from the potential return... but I kept telling myself there is a big diff between potential and reality... reminds me of a great joke....
eventually, I partnered with him with a couple of contingencies... we would switch areas of concentration and stay coastal. So the group bought 2.5 km of beautiful ocean front property.... but I would not put in my full portion until others were in the project and formal business plans were devised. Gladly, he was able to raise the 6mil (not without ease) and just recently sold equity of this project at a multitude of our investment so now we are able to fund the construction and complete engineering without leverage a premier marina.
My initial investment fully funded my entire retirement as a result of the original hour I gave him to pitch the idea. so, here are a couple of lessons learned-
1. if you believe in the idea, make it work. As a result of just an idea, the rewards are dramatically enhanced in every way- I am much more emotionally, financially, mentally charged than investors looking to participate today. An actual in place program, or project does not reap the rewards as it would if it has not gotten off the ground.
2. go with someone who believes in the idea, concept or product. A stiff suit meeting with charts gives me second doubts about ones faith in the project/product/idea... do background checks on the partners- you won't believe half the shit people try to pull off.
3. Ask a lot of questions, and I mean a lot... do not leave any rock uncovered. My partner confided in me later that I was absolutely exhausting but while he learned so much more about what needed to be addressed, I was asking the questions for my own good to help me undestand my risk.
4. Make sure your a$$ is covered. If any other debt is generated, make sure your name is on top before anyone else is paid in case of default.... accountants and lawyers need to evaluate the agreements... a few grand goes a long way to save your a$$, and so do a few hours of reading the terms/conditions/agreements/contracts....
5. Don't be like Michigan State in 1990(?) finals.... (Jalen Rose?) didn't take the shot at the buzzer to try to win the game. Sometimes you just gotta go for it after you spend time analyzing the risks vs. rewards. If there are any doubts, revisit the table, partners, and ask questions...
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