Good day,
I am writing in this forum to learn how to approach a potential investor. My family, friends and I have minimal means at our disposal to begin building our financial independence, and therefore, we will need to build relationship with potential investors.
Our short term goal is to establish a sports complex with a focus on elite travel teams, and hosting tournaments. In addition, we will be working to build a real estate investment company. Ultimately, I will buy and sell distressed companies, with a goal of within 5 years.
Initially, we pursued a avenue of obtaining $250,000.00 with an interest rate of up to 50%, and offer 250 $1,000.00 blocks (not shares), we realized that pooling money is illegal for non-accredited investors. This money would have been distributed throughout the different companies within the enterprise. We thought we would begin with the real estate investment company, which would consist of a rehab (flip), rental (Property management), and construction stand alone departments. All the while developing the sports complex. The interest weight would have been diluted as follows:
We would have made monthly interest payments on the principal owed, and payoff principal blocks (as mentioned above) as it seem financial responsible. This idea was mutated from a version of hard money lending. We would have to establish and maintain all business at once (jump into the deep end so to speak), even though we would be capable of this.
We have researched the idea of establishing a investment company to SEC regulations, and that would make the above possible. Any advice on how this might work would be welcomed.
We then thought maybe a partner, and then an angel or venture. We would prefer not to give up any control of the company, but beggar's can't be choosers, right?
We are now waiting on a meeting with an SBA mentor, but this will force us to find start up capital anyway. Again, this is an issue for us. This avenue would be nice since we could focus on just the sports complex to start.
Assuming that I have no idea what I am doing, which I believe I do, What would you like to see when a potential business approaches you? What would you want from a potential opportunity with limited financial resources? What kind of return are you expecting? Etc?
Thank you for taking the time to read this, and we look forward to your expertise.
Caleb
I am writing in this forum to learn how to approach a potential investor. My family, friends and I have minimal means at our disposal to begin building our financial independence, and therefore, we will need to build relationship with potential investors.
Our short term goal is to establish a sports complex with a focus on elite travel teams, and hosting tournaments. In addition, we will be working to build a real estate investment company. Ultimately, I will buy and sell distressed companies, with a goal of within 5 years.
Initially, we pursued a avenue of obtaining $250,000.00 with an interest rate of up to 50%, and offer 250 $1,000.00 blocks (not shares), we realized that pooling money is illegal for non-accredited investors. This money would have been distributed throughout the different companies within the enterprise. We thought we would begin with the real estate investment company, which would consist of a rehab (flip), rental (Property management), and construction stand alone departments. All the while developing the sports complex. The interest weight would have been diluted as follows:
- Year 1 with an interest only payment on the principal of 25% or 6.25% each
- Year 2 with an interest only payment on the principal of 35% or 8.75% each
- Year 3+ with an interest only payment on the principal of 50% or 12.50% each
We would have made monthly interest payments on the principal owed, and payoff principal blocks (as mentioned above) as it seem financial responsible. This idea was mutated from a version of hard money lending. We would have to establish and maintain all business at once (jump into the deep end so to speak), even though we would be capable of this.
We have researched the idea of establishing a investment company to SEC regulations, and that would make the above possible. Any advice on how this might work would be welcomed.
We then thought maybe a partner, and then an angel or venture. We would prefer not to give up any control of the company, but beggar's can't be choosers, right?
We are now waiting on a meeting with an SBA mentor, but this will force us to find start up capital anyway. Again, this is an issue for us. This avenue would be nice since we could focus on just the sports complex to start.
Assuming that I have no idea what I am doing, which I believe I do, What would you like to see when a potential business approaches you? What would you want from a potential opportunity with limited financial resources? What kind of return are you expecting? Etc?
Thank you for taking the time to read this, and we look forward to your expertise.
Caleb
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