In "fanocks" success thread I've been pretty intrigued at his method for making money, and am curious as to whether it'd work here in the US like it does there.(He mentions selling companies that are losing money to people who need tax shelters, and that there is good demand for that there, and I don't think it's the same situation here which is why I mention the potential difference in where we live.)
Basically he creates a business and when at the sales phase, he sells regardless of the company making money or not. From anyone I've ever talked to in the US, if a business was losing money they may buy it if they thought it had potential, and/or if they could turn it around, but they'd be buying it at a bargain price, not paying big money for it. Like when SteveO buys an apartment, he pays a price for it based on it under performing, and turns it around and sells for a profit once it's doing well. With websites people talk all the time on the forums how you can generate X amount of income per month from a site, and then sell for Y times X because of the income the business is producing. If the website wasn't making much money someone who knew what they were doing could come in and buy for super cheap if they saw potential/thought they could turn it around, but they wouldn't pay top dollar for it. So I'm interested if people know of anyone here in the states doing it how he's doing. Basically building a business and searching for people to pay big money for it regardless of if it's a profitable business or not. I have heard how some large companies overpay for pieces of certain companies to get a market share, but have not heard of small private companies in the US being able to successfully sell unprofitable companies for top dollar to private investors. As far as I understand, that'd be when a private investor would get a bargain on it. If you do know of people who do this, I'd be interested how they do it.
Here is a post from fanocks in the $3k to $1 million challenge thread:
"What I would do with $3k in my pocket in order to create $1million in liquid cash in the bank in 15 months:
1) I would find a smaller company for sale.
2) I would put the $3k down as an option payment for the company (1% of sales price. That means you will control a $300k company).
3) I would then look for buyers to buy the shares I controlled for more money than I paid for it.
4) Pay taxes on the gains and put the gains on a new buy option (preferably not every cent of the gains though
). On a bigger company. And repeat."
No where in there did he look to create value, he just looked to find someone willing to pay at a higher price; which I'm not saying is good or bad, I'm just saying that, I've not heard of someone doing this with small private companies in the US, but would love to hear from people if someone here is doing this, and how they are able to do it. Where are they able to find people willing to "overpay." I say "overpay" because I understand that the market value is what people are willing to pay for it, but when those people go to sell it if they don't hype it/sell it as well as he did to them, they are going to find that the value isn't there. Interested if anyone else you know of does it this way.
Here is fanocks thread I mentioned:
http://www.thefastlanetomillions.co...19-success-story-fanocks2003-2.html#post63359
Would love to hear some discussion on this.
Basically he creates a business and when at the sales phase, he sells regardless of the company making money or not. From anyone I've ever talked to in the US, if a business was losing money they may buy it if they thought it had potential, and/or if they could turn it around, but they'd be buying it at a bargain price, not paying big money for it. Like when SteveO buys an apartment, he pays a price for it based on it under performing, and turns it around and sells for a profit once it's doing well. With websites people talk all the time on the forums how you can generate X amount of income per month from a site, and then sell for Y times X because of the income the business is producing. If the website wasn't making much money someone who knew what they were doing could come in and buy for super cheap if they saw potential/thought they could turn it around, but they wouldn't pay top dollar for it. So I'm interested if people know of anyone here in the states doing it how he's doing. Basically building a business and searching for people to pay big money for it regardless of if it's a profitable business or not. I have heard how some large companies overpay for pieces of certain companies to get a market share, but have not heard of small private companies in the US being able to successfully sell unprofitable companies for top dollar to private investors. As far as I understand, that'd be when a private investor would get a bargain on it. If you do know of people who do this, I'd be interested how they do it.
Here is a post from fanocks in the $3k to $1 million challenge thread:
"What I would do with $3k in my pocket in order to create $1million in liquid cash in the bank in 15 months:
1) I would find a smaller company for sale.
2) I would put the $3k down as an option payment for the company (1% of sales price. That means you will control a $300k company).
3) I would then look for buyers to buy the shares I controlled for more money than I paid for it.
4) Pay taxes on the gains and put the gains on a new buy option (preferably not every cent of the gains though
). On a bigger company. And repeat."No where in there did he look to create value, he just looked to find someone willing to pay at a higher price; which I'm not saying is good or bad, I'm just saying that, I've not heard of someone doing this with small private companies in the US, but would love to hear from people if someone here is doing this, and how they are able to do it. Where are they able to find people willing to "overpay." I say "overpay" because I understand that the market value is what people are willing to pay for it, but when those people go to sell it if they don't hype it/sell it as well as he did to them, they are going to find that the value isn't there. Interested if anyone else you know of does it this way.
Here is fanocks thread I mentioned:
http://www.thefastlanetomillions.co...19-success-story-fanocks2003-2.html#post63359
Would love to hear some discussion on this.
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