Now, you’re scrambling. You’ve already offered what you think is a good deal to your private investor. They were “in” and now they’re on the fence. Reaching to pull them back over, you offer them what you think is an unshakable security in the deal: putting them on deed. The purpose of putting them on deed would be to provide an additional layer of protection to the investor. You couldn’t do anything to ‘run-off’ with their money, so they should feel secure, right?
Many people who become wealthy at a young age attained their status by starting their own business. You can get a job with a high-ranking position and a good salary; but in the end, you’re still just an employee.
There are a number of ways to acquire financing, such as a hard-money loan or partnering up with a Private investor. You could do owner-financing too, but you would want to pay the total amount past due as your down payment. And you can do the real estate property transfer yourself using a quit claim deed or you can hire a real estate attorney to do the closing properly for you.
What does it have in common with being rich? First of all, in order to be rich you must live frugally, therefore you should buy only products with the best price available. To do this you should deal with the process of comparison on the fly. Do you go to shopping with paper, pen and calculator? Probably not. Although it might not looks like that, the same process and skill are used in the process of investing. You should invest only in the best opportunities, or to say it the terms of price you should buy only the best Investment opportunities.
And looking for bargains is a lot easier than trying to time your trades to take advantage of the rise and fall of the market. Studies have shown that the biggest gains come on a handful of trading days.
With their investment, however, it is different than just a loan that you would get from the bank. You will need to repay the loan amount with interest. The investor also will own shares in your business and they will receive a portion of your profits. In most instances this amount is approximately 2% of your profits.
Just as art imitates life, the game offered them a valuable life lesson: you need to spend money to make money. You need to recognise opportunities and take advantage of them while you can because if you wait you may miss out. When I recently booked airline tickets I missed a cheap fare for that exact reason. “Seize the moment!” I implored myself.
Most private investors are savvy business people themselves and will understand a good business transaction when they see it. They will also be able to see through any scam someone may try to pull. Private lenders are not going to invest in a bad deal. If your business idea has merit then chances are the private lender will discuss terms with you. You are not obligated to take the terms of their loan anymore than the lender is obligated to fund the loan. Negotiate the terms to see if you can get a lower interest rate if you think it is too high. Don’t be afraid to ask for a lower interest rate or a longer period to repay.