Everybody dreams about a million dollar deal. The overnight wealth type of deal. One simple idea that you gain the vision to follow through with. These happen every day, but unfortunately it is rarely done by ordinary people who would benefit from a deal like that. It’s usually made by professionals that know what they are doing.
The mind is an amazing piece of hardware and can deliver all sorts of amazing answers to the most difficult questions. Just like a computer, you start with a question you want an answer to, then you feed the mind the data it needs to formulate a quality and high probability of success answer.
Many would be happy with a million dollars in a few years even, but some are ambitious, and consider it a waste of effort for anything under a million dollars. One way to do a million dollar deal is to use other peoples equity.
The most likely answer to the question, “how do I make a million dollars by next Thursday” would look something like this. You would find an investment object of value. To invest one million dollars before you actually own one million dollars, you would need to deal in assets that are worth $5 to $10 million dollars. A residential water front mansion, a quality business, a small hotel down town, a luxury Yacht, it doesn’t matter what the investment is, because there are other much more important considerations.
The most important considerations are the numbers. Lets say we found a seller of a luxury Yacht who was quite urgent about finding a buyer. The Yacht is a masterpiece of craftsmanship and the asking price is $12 million dollars. You don’t have $12 million dollars, you don’t even have $1200 dollars in your bank account. But that is not important. If this seller gets his boat sold. If the new buyer you find to conclude the deal is filthy rich and not price sensitive, but rather utility sensitive (more on that in a moment) Then it doesn’t matter that you are really poor, I assure you this is but a temporary condition.
Your first step, after inspecting the vessel and taking extensive digital pictures, is to assess the boats real intrinsic value. If you know nothing about boats, you may need to become an expert fast. Because you need to familiarize yourself with all possible features and understand the market quickly. The point of your research is to put a real price on the boat. A price you know will sell the boat.
You are after $1 million dollars, so that boat needs to have around 8% spare excess intrinsic value in it. In other words, you will need to find that equity somewhere. You can find it from the seller, by offering him $11 million for the vessel. Or you can get it from the buyer buy charging $13 million dollars for the boat, or you can do a combination of both to access that 8% million dollar profit.
Perhaps you can do some research on what the new buyer might need and supply that to give you the extra you need to profit. For example, the new buyer might not have even thought about mooring and maintenance, so you find a good quality marina and establish pricing for him and present it to him. This simple afternoon of work might be the tipping point that will seal the deal in the new buyers mind.
You need to understand the utility of the new buyer, the reasons why he wants to buy a luxury cruiser and what it would take for him to be happy with your deal. Then provide it as best you can.
Lets say you find a buyer and have made him satisfied and wants to go ahead with the purchase. Great. Now what. You don’t own the boat and it is quite illegal to sell something you don’t rightfully own. The only exception to this law, is in the stock market where you can short sell and “put” shares to people even though you don’t own the shares.
But here is the thing. If you gain commitment from that buyer and the million dollars is in the deal. If you approached a loan officer, I don’t think there would be a bank in the country that would not consider lending you the required capital for a short period of time because you have one million dollars in equity and you have the boat. They would independently value the boat and put your contract up as equity. The boat and the contract would serve as collateral under their lending procedures. It all depends on the strength of the commitment you gained from the buyer. If he signed a contract, that is a one million dollar piece of paper.
Once you have secured the funds, it is a simple matter of picking the boat up from the seller and delivering it to the buyer. His check goes directly to the lending bank, with the left over million deposited into your account. Im sure the lending bank would take a nice nibble on your million in the form of interest, but thats ok, their help was worth a million dollars to you. It takes knowledge and a little finesse. This is not above anybody.