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Lend money to public companies.
Why is this a lucrative business? Because short of fraud and/or theft and/or acts of God, you can’t lose money. And the returns can double to ten times your money in as little as 1 to 5 years. Furthermore, it gets even better as we are currently taking companies public and have set up a model where you can fully outsource all the work, so the time invested can be almost nil.
How does this work? When you lend money to a private company to go public, not only do you get your money back via the loan, but you get a percentage ownership of the public company for your investment of putting up the fees and covering the costs of taking the company public. Unlike investing in a private company, when you are the investor taking the company public, if you know how, you can get the public vehicle itself as collateral. The public vehicle is worth about four times what you invest to take the company public. Public vehicles are like owning the real estate for a business operation – like say a restaurant. Once listed, public companies have value independent of the success or failure of the business within the public company. So your investment ends up being very much over collateralized. In addition, unlike a private company investment, your stock that you acquire will be free trading stock after the company is public.
Public companies typically cost about $75,000 to $150,000 to create. But once created the public vehicle (independent of the business within it) can sell for from $300,000 to $500,000 in cash PLUS a percent of the stock in the company that buys the public vehicle. (The old company is taken out and the new company is put in – sort of like a change of tenants for a real estate building.) Public company vehicles when sold can net anywhere from $250,000 to $2,000,000+ profit for a $75,000 investment. Even on an incredibly bad deal you should still always at least double your money.
“Building” a public company, is much like “building” a restaurant business from the ground up.
For example, if you put up $75,000 to build a restaurant and the deal was that you got your money back + say 10% ownership in the business and the whole investment was secured or collateralized by the restaurant building and real estate (and say this was worth $300,000), you would not have to worry about whether the restaurant business was successful or not. If successful you would get your money back + 10% of the income from the successful business forever. If not, you would get the restaurant building and land worth $300,000 that you could sell and make a 400% return on investment. Either way you win.
Now these kind of real estate/business deals are hard to come by because you usually can’t get $300,000 of collateral for a $75,000 investment, but these kind of deals are numerous and easy to find on the public market. When you are the lender who lends money to take the company public, these deals are easy to cut.
For a $25,000 to $100,000 investment you can get
· Your money back ( a loan secured by the public vehicle as collateral) and
· A percentage ownership in the company (usually around 5% – but this will be public “freely tradable stock after the company becomes public and starts trading)
· A time limit for the company to pay you back – if they don’t, then you get to repossess the collateral (the public vehicle is currently worth typically $300,000 – $500,000 in cash + you can retain your stock in the company which could be worth another couple of hundred thousand to a couple of million dollars when the new company takes over and is successful.)
· Worse case scenario (outside of fraud and acts of God scenarios) – the company is unsuccessful and doesn’t pay you back. You repossess the public vehicle and sell it for $300,000 and make $200,000 profit for your $100,000 investment. The next company is also a failure and your stock is worthless and you never see another dime from your investment. It took you three years to realize a 200% profit.
· Best case scenario – Well there are a couple of alternatives. 1) The company is successful and pays you back with interest the money you invested. You sell your stock and make another $200,000 to $2,000,000 dollars on top of that. (Unless it turns out to be the next Apple or Microsoft and your stock is worth a gazillion dollars!) Or 2) the company fails. You repossess the public vehicle. You sell it for $400,000 and make a quick $300,000 profit + you retain stock in the company you sold and that stock makes you another $200,00 to $2,000,000 profit on top of that. (Unless again it turns out to be the next Apple or Microsoft and your stock is worth a gazillion dollars! For reference, though, of actual upside potential, the most any of our clients have ever reported making on a subsequent sale of a 4% interest in a company they sold is $12,000,000.)
So now we have told you the secrets of “lending money to public companies” and best of all… WE WILL DO IT ALL FOR YOU!
Become our partner and begin lending money to companies going public on the OTC and other Stock Exchanges around the world.
As your partner we will:
· Provide you with customers
· Close the deals for you
· Do all the work to take them public – no interaction on your part with clients required
· Manage your clients
· Provide you with all legal and professional connections/relationships to administrate
your business and oversee them.
· Set you up with accounts and account professionals to liquidate investments and profits
· Help you liquidate collateral if and when necessary.
You can get started in your own “lending to public companies” business with as little as $25,000 and if you think you are interested in becoming a lender give us a call today.
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