My closed ended subscribers list for interested wannabe dealmakers only. Serious wannabe dealmakers may attend only!
Subscribe to my monthly dealmaking subscribers list if you are interested in getting tips from a real time dealmaker. This list is a closed end subscribers list. There will be a $100 first time fee. After the first month trial you will continue to be billed $80 each month for a continous period of 24 months. If you decide that after one trial you aren't satisfied with what I present then please send me an email urgently so I can remove you from my list of closed ended subscribers. This needs to be done before the second month starts (when the second month has started you are stuck with 24 months of really good dealmaking advise. So please be urgent with your removal request if you want to be removed, thank you).
I promise not to misuse your precious time with long emails without any practial use to you. I will send 1 email each month and only 1 email. This makes it even more exclusive in comparison to many other services on the internet today that almost spam it's subscribers daily. Every email will be sent to you on the 25th every month so keep your eyes open. Please check your spam filters because my emails may end up there in the begin until you accept my emails as legitimate.
When ordering you will need to send me your email adress so that I can verify it against Paypal (send an email from the email used when signing up for the advanced dealmaking service). Send me an email to the emailadress you will encounter when signing up for this service. You will see this email adress in the top of the ordering page. Hope to see you on board I have a lot to teach you guys. But you need to commit as mentioned on my blog. The teachings I will give you will not in any case be displayed on the open, free blog I am currently working on as a treat. I want to give you more advanced stuff to work on (Something everyone else needs to try out by trial-and-error). Why should you pay me big cash every month otherwise, right? That would be plain dumb to be honest.
So commit now and enjoy knowing things that can give you more advantage in life. Believe me, the things that give you advantages are small, simple things practiced with finesse. Not big ballony stuff. And yes, there is a truth to the saying: "If hard work was the way to a life in luxury, then why are the hardest working people not richer than their bills?". Some of them can't even pay their bills because they lack the capital to do so. What a horrible life to lead. I seriously hope you are smarter than that.
torsdag 20 december 2007
Donation
If you like this blog and you would feel like donating anything (even though I don't need it, it sure would be nice having someone showing their appreciation. Nothing talks better like a money commitment).
Dealmaking for yourself
Dealmaking when purchasing real estate or a company
The biggest hurdle people face when trying to purchase companies and real estate is the down-payment. Everyone are having a big difficulty with this. And I'm sad that they do because they miss one very vital point when looking at these two choices of investments. Do you know which one vital tool they lack?
Is it the down-payment? No
Is it bad credit? Seldom
Then what is it? Read on.
Market valuation
When you are looking for real estate (investment purpose) or companies you need to have a market valuation done in every case. Why? The easy, but not the most obvious (probably because very few people use it to their advantage) answer is: Market valuation can help you realise how much a company is really worth or how much real estate is worth. When you know the actual value of something you can actually solve much of your down-payment issues. Not always because sometimes the seller wants more than what the market valuation is showing to be true.
Example
Say you are looking too purchase a property at a price of $100.000. In this case you are required too put down 25% in down-payment. That is $25.000.
Well the problem here is (in this example) that you don't have $25.000 to put down. But you do afford a market valuation guy.
So the thing you will do in this case is to do a market valuation (expert help only) in order to see if the real estate is worth a lot more than the $100.000 the seller is asking for. If not, pass on the deal immediately.
In this case we where lucky. The market valuation (the true value) of this real estate was $200.000. What this mean is you could borrow money for the entire purchase price with a 50% LTV loan. But in order to have the bank saying yes you also need to show how you are going to pay for the bankloan.
In this case you would like to purchase this property in order to rent it out to a tenant with a big and stable salary and with excellent credit rating (because if you have really bad credit rating yourself you really need a tenant who can bail you out a little. The only way to be honest). So before you go to the bank with the market valuation you need to sign up a tenant that meets thos criterias (great credit rating and big salary).
The easiest way to have your banker believe in your proposal is to make it so safe that he would
be a total moron if he passed it up. This "proposal from heaven" works like this:
Have the bank setup a new bank account. Have the tenant pay his/her rent into this account every month and then let the banker take his cut and then pay you what is left. This way he controls the the cashflow, not you (you gotta start somewhere). This account should be a frozen account so that you would have no chance to reach this money. You gotta help the bank in order for them to help you. Especially if you are a money risk.
Hope you have learnt something from me today.
The biggest hurdle people face when trying to purchase companies and real estate is the down-payment. Everyone are having a big difficulty with this. And I'm sad that they do because they miss one very vital point when looking at these two choices of investments. Do you know which one vital tool they lack?
Is it the down-payment? No
Is it bad credit? Seldom
Then what is it? Read on.
Market valuation
When you are looking for real estate (investment purpose) or companies you need to have a market valuation done in every case. Why? The easy, but not the most obvious (probably because very few people use it to their advantage) answer is: Market valuation can help you realise how much a company is really worth or how much real estate is worth. When you know the actual value of something you can actually solve much of your down-payment issues. Not always because sometimes the seller wants more than what the market valuation is showing to be true.
Example
Say you are looking too purchase a property at a price of $100.000. In this case you are required too put down 25% in down-payment. That is $25.000.
Well the problem here is (in this example) that you don't have $25.000 to put down. But you do afford a market valuation guy.
So the thing you will do in this case is to do a market valuation (expert help only) in order to see if the real estate is worth a lot more than the $100.000 the seller is asking for. If not, pass on the deal immediately.
In this case we where lucky. The market valuation (the true value) of this real estate was $200.000. What this mean is you could borrow money for the entire purchase price with a 50% LTV loan. But in order to have the bank saying yes you also need to show how you are going to pay for the bankloan.
In this case you would like to purchase this property in order to rent it out to a tenant with a big and stable salary and with excellent credit rating (because if you have really bad credit rating yourself you really need a tenant who can bail you out a little. The only way to be honest). So before you go to the bank with the market valuation you need to sign up a tenant that meets thos criterias (great credit rating and big salary).
The easiest way to have your banker believe in your proposal is to make it so safe that he would
be a total moron if he passed it up. This "proposal from heaven" works like this:
Have the bank setup a new bank account. Have the tenant pay his/her rent into this account every month and then let the banker take his cut and then pay you what is left. This way he controls the the cashflow, not you (you gotta start somewhere). This account should be a frozen account so that you would have no chance to reach this money. You gotta help the bank in order for them to help you. Especially if you are a money risk.
Hope you have learnt something from me today.
onsdag 19 december 2007
Cash Flow
CashFlow, Why?
I am sorry to say that many starting entrepreneurs today are naive businesspeople. They go around looking for capital without no cashflow history whatsoever. In my world, no cashflow equals no demand. And if there is no demand then why should I as the dealmaker find investors for these entrepreneurs at this moment?
What it takes
What it takes to get respect from any investor out there today is having positive cashflow coming in month after month. Having blue-chip customers so to speak.
It has never been harder to raise capital than today. Because there are millions of people trying out being entrepreneurs. Many of them aren't entrepreneurs by a long shot. They lack perserverance for a starters and secondly they lack the right focus. The right focus is that you gotta make positive cashflow. Try every conceivable way of making that happen (legally of course).
My role as the dealmaker
I care about entrepreneurs having negotiating power when speaking with investors. I really do. But as the great dealmaker Herb Cohen ones said: "I care, but not T-H-A-T much". It's still your job as the entrepreneur to create your own "luck".
I am sorry to say that many starting entrepreneurs today are naive businesspeople. They go around looking for capital without no cashflow history whatsoever. In my world, no cashflow equals no demand. And if there is no demand then why should I as the dealmaker find investors for these entrepreneurs at this moment?
What it takes
What it takes to get respect from any investor out there today is having positive cashflow coming in month after month. Having blue-chip customers so to speak.
It has never been harder to raise capital than today. Because there are millions of people trying out being entrepreneurs. Many of them aren't entrepreneurs by a long shot. They lack perserverance for a starters and secondly they lack the right focus. The right focus is that you gotta make positive cashflow. Try every conceivable way of making that happen (legally of course).
My role as the dealmaker
I care about entrepreneurs having negotiating power when speaking with investors. I really do. But as the great dealmaker Herb Cohen ones said: "I care, but not T-H-A-T much". It's still your job as the entrepreneur to create your own "luck".
Cruising ship
I just gotta tell you about my latest (picked from many others) deal I am involved in right now. I can only give you vague information (I am a dealmaker with a need of having exclusive control remember) about the deal, but I hope you will enjoy it. And if you get so carried away that you might even consider purchasing the damn ship, come along, commit 10% of the contractual price and let's do some business.
Well, back to subject. This ship I was introduced to recently is a passenger ship. A small cruising ship so to speak. Newly constructed 2005. Valued and sold at 7.5 million SEK (you do the currency exchange). What this company wants to do is a sales-lease back deal meaning they want to sell the ship to an investor for 7.5 million SEK and lease it back from the investor at 11% effective annual interest for at least 10 years.
Obviously I took them up on their offer and I am now looking to sell this sucker and make some money. Give value, make money, everybody happy equals good sleep and fun parties. Nothing more to it.
Give me a line if you are interested. And remember, commit 10% of the contractual price of 7.5 million SEK or don't email at all. I will not give away a deal like Santa Claus would. That is just plain nuts. Also remember, if you do commit 10% of contractual price, that you will only get this commitment fee back if the seller says no to you and if the seller is the one pulling out of the deal. And also remember if you can't get it on tape then no money will be paid back. You need to prove the seller was the one pulling out of the deal, obviously. Some way or the other. The best way is to have the seller tell me he was the one pulling out of the deal.
If we don't meet before next year: Have a Very Good Christmas and a Happy New Year. Happy 2008, the year of great new deals.
Well, back to subject. This ship I was introduced to recently is a passenger ship. A small cruising ship so to speak. Newly constructed 2005. Valued and sold at 7.5 million SEK (you do the currency exchange). What this company wants to do is a sales-lease back deal meaning they want to sell the ship to an investor for 7.5 million SEK and lease it back from the investor at 11% effective annual interest for at least 10 years.
Obviously I took them up on their offer and I am now looking to sell this sucker and make some money. Give value, make money, everybody happy equals good sleep and fun parties. Nothing more to it.
Give me a line if you are interested. And remember, commit 10% of the contractual price of 7.5 million SEK or don't email at all. I will not give away a deal like Santa Claus would. That is just plain nuts. Also remember, if you do commit 10% of contractual price, that you will only get this commitment fee back if the seller says no to you and if the seller is the one pulling out of the deal. And also remember if you can't get it on tape then no money will be paid back. You need to prove the seller was the one pulling out of the deal, obviously. Some way or the other. The best way is to have the seller tell me he was the one pulling out of the deal.
If we don't meet before next year: Have a Very Good Christmas and a Happy New Year. Happy 2008, the year of great new deals.
måndag 17 december 2007
About the fee system
Fee system used by dealmakers
Many people dislike dealing with dealmakers most of the time, because they think they will be losing money when using a dealmaker. They think they will save some cash by bypassing them But let me put it this way:
If you could be introduced to a guy with a great potential of making your particular deal happen right now, then wouldn't that be worth a couple of dollars to the dealmaker introducing this guy to you and introducing you to this guy? Wouldn't it be worth it to pay the dealmaker in order to avoid waisting time figuring out how to reach this contact by yourself? I think it is. I think it is worth every penny.
The funny thing about being a dealmaker is that people think you will fool them. That they will recieve no value whatsoever for their money. Well, let me then give you a hint on why they will recieve a value or their money back.
When you are dealing with a client you ask him to pay a commitment fee into a third party escrow. You then give the client a due diligence of 15 days and upwards. If you where lying to the client about your contacts he would recieve his money back very quickly. You wouldn't get the money that way. Only if you give honest information you would get the commitment fee. Otherwise you would lose it all. It's that simple.
Why commitment fees?
You want people to know that it will cost them money to be part of what you are introducing to them. Also you need to recieve some money for the time, commitment and exclusivity you are giving your client. I mean, if you are willing to commit 1 year of your time on making a deal happen and your client or the other party have no intention on proceeding to striking a deal, then you would be out of both time and money. That is not a way of paying your bills. That is just nuts.
Your client needs to know that there is a price to pay even if the deal doesn't materialize.
The fee system is also there to see who is serious about your services and who isn't serious. You will gain so much energy and time that way. That way you can help those who value your time and commitment.
Many people dislike dealing with dealmakers most of the time, because they think they will be losing money when using a dealmaker. They think they will save some cash by bypassing them But let me put it this way:
If you could be introduced to a guy with a great potential of making your particular deal happen right now, then wouldn't that be worth a couple of dollars to the dealmaker introducing this guy to you and introducing you to this guy? Wouldn't it be worth it to pay the dealmaker in order to avoid waisting time figuring out how to reach this contact by yourself? I think it is. I think it is worth every penny.
The funny thing about being a dealmaker is that people think you will fool them. That they will recieve no value whatsoever for their money. Well, let me then give you a hint on why they will recieve a value or their money back.
When you are dealing with a client you ask him to pay a commitment fee into a third party escrow. You then give the client a due diligence of 15 days and upwards. If you where lying to the client about your contacts he would recieve his money back very quickly. You wouldn't get the money that way. Only if you give honest information you would get the commitment fee. Otherwise you would lose it all. It's that simple.
Why commitment fees?
You want people to know that it will cost them money to be part of what you are introducing to them. Also you need to recieve some money for the time, commitment and exclusivity you are giving your client. I mean, if you are willing to commit 1 year of your time on making a deal happen and your client or the other party have no intention on proceeding to striking a deal, then you would be out of both time and money. That is not a way of paying your bills. That is just nuts.
Your client needs to know that there is a price to pay even if the deal doesn't materialize.
The fee system is also there to see who is serious about your services and who isn't serious. You will gain so much energy and time that way. That way you can help those who value your time and commitment.
A Dealmakers life
Living as a dealmaker is an interesting life. You make money by giving other people a chance of reaching out on the market place. You put person A together with person B and make a pre-set commision on the deal. That commision can be a lot of cash if you do a big deal.
For the ones who doesn't have any experience from dealmaking I might explain this thing about fees. The short description is, there is in general only two fees available:
Commision fee
Flat Fee
Commision Fee
Commision fees is paid out based on the askig price (also called contractual price). Usually 1-5% of the contractual price.
Flat Fee
Flat fees is as it says, a flat fee. A fixed fee not based on the contractual price at all.
What many starting dealmakers mistakenly do when dealing for people is that they:
1) Never secure the deal legally. No binding contract is drafted and signed by the one they are dealing for. Resulting in getting cheated out of their cashflow easilly.
2) Never commanding the dealmaking fee paid into escrow account before starting negotiating the actual deal. This is the most frustrating part, because you need to secure your cashflow before you do anything. Never trust someone saying, they will pay everything when everything is done. Well if this guy says no to the deal he will certainly not pay you anything. And that means you have wasted a lot of time (usually months and years if you do greater deals) with no pay whatsoever.
This is my first text on this dealmaking blog. Please, comment on your thoughts and let us debate.
For the ones who doesn't have any experience from dealmaking I might explain this thing about fees. The short description is, there is in general only two fees available:
Commision fee
Flat Fee
Commision Fee
Commision fees is paid out based on the askig price (also called contractual price). Usually 1-5% of the contractual price.
Flat Fee
Flat fees is as it says, a flat fee. A fixed fee not based on the contractual price at all.
What many starting dealmakers mistakenly do when dealing for people is that they:
1) Never secure the deal legally. No binding contract is drafted and signed by the one they are dealing for. Resulting in getting cheated out of their cashflow easilly.
2) Never commanding the dealmaking fee paid into escrow account before starting negotiating the actual deal. This is the most frustrating part, because you need to secure your cashflow before you do anything. Never trust someone saying, they will pay everything when everything is done. Well if this guy says no to the deal he will certainly not pay you anything. And that means you have wasted a lot of time (usually months and years if you do greater deals) with no pay whatsoever.
This is my first text on this dealmaking blog. Please, comment on your thoughts and let us debate.
Prenumerera på:
Inlägg (Atom)