Everyone dreams of a million dollar deal. The kind of overnight wealth deal. A simple idea with which you get the vision to move forward. This happens every day, but unfortunately it’s rarely done by ordinary people who would benefit from a deal like that. It is usually done by professionals who know what they are doing.
The mind is an amazing piece of hardware and can come up with all sorts of amazing answers to the toughest questions. Like a computer, it starts with a question you want an answer to, then feeds your mind the data it needs to formulate a quality answer with a high probability of success.
Many would be happy with a million dollars in a few years, but some are ambitious and consider it a waste of effort for less than a million dollars. One way to make a million dollar deal is to use other people’s capital.
The most likely answer to the question “how do I make a million dollars by next Thursday?” It would be something like this. I would find an investment object of value. To invest a million dollars before you actually own a million dollars, you would need to trade assets worth between $5 million and $10 million. A residential mansion facing the sea, a quality business, a small hotel in the center of the city, a luxury yacht, it does not matter what the investment is, because there are other, much more important considerations.
The most important considerations are numbers. Let’s say we found a seller of a luxury yacht who was quite eager to find a buyer. The yacht is a masterpiece of craftsmanship and is listed for $12 million. You don’t have $12 million, you don’t even have $1200 in your bank account. But that’s not important. If this seller manages to sell his boat. If the new buyer you find to conclude the deal with is filthy rich and not price sensitive but more utility sensitive (more on that in a moment), then it doesn’t matter if you’re really poor, I assure you this is only temporary. condition.
Your first step, after inspecting the vessel and taking extensive digital photographs, is to assess the true intrinsic value of the vessels. If you don’t know anything about boats, you may need to become an expert quickly. Because you need to familiarize yourself with all possible features and understand the market quickly. The goal of your research is to put a real price on the boat. A price you know will sell the boat.
You are looking for $1 million dollars, so the ship should have about 8% excess intrinsic value added. In other words, you’ll need to find that equity somewhere. You can find it from the seller, offering you $11 million for the ship. Either you can get it from the buyer by buying $13 million dollars for the boat, or you can do a combination of both to access that 8% million dollar profit.
Maybe you can do some research on what the new buyer might need and supply it to give him the extra he needs to make a profit. For example, the new buyer may not have even thought about mooring and maintenance, so you need to find a good quality marina and set a price for it and present it to them. This simple afternoon of work could be the tipping point that seals the deal in the minds of new buyers.
You need to understand the new buyer’s utility, the reasons you want to buy a luxury cruise ship, and what it would take to be satisfied with your deal. Then give it to him the best you can.
Let’s say you find a buyer and you’ve satisfied them and want to go ahead with the purchase. Excellent. Now what. You do not own the boat and it is quite illegal to sell something that does not rightfully belong to you. The only exception to this law is in the stock market, where you can short and “put” shares to people even if you don’t own the shares.
But here’s the thing. If you get that buyer’s commitment and the million dollars is in the deal. If you were to approach a loan officer, I don’t think there is a bank in the country that would not consider lending you the required capital for a short period of time because you have a million dollars in capital and you have the boat. They would independently value the ship and put up their contract as equity. The ship and the contract would serve as collateral under its loan proceedings. It all depends on the strength of the commitment you got from the buyer. If he signed a contract, that’s a million dollar piece of paper.
Once you’ve secured the funds, it’s a simple matter of picking up the boat from the seller and delivering it to the buyer. Your check goes directly to the lending bank, with the remaining million deposited into your account. I’m sure the lending bank would take a big bite out of your million in the form of interest, but that’s okay, their help was worth a million dollars to you. It takes knowledge and a little finesse. This is not above anyone.