I didn’t want to go searching for the thread where I intro’d Gandalf.
Anyways, there’s been several meetings with some big money dawgs. The builder that tied up the project is looking for about 5 million in funding for a 23 million dollor project and he’s been shot down several times. Tonite is probably going to be a last chance with a couple more big names.
At this point the best that I’m going to be involved is very little or none at all for various reasons. Gandalf has told me that nothing looks good but if he does arrange the financing, I’d be in line to receive a five figure bird dog fee at the very least, but dont spend it till it happens.
Were continuing our search for a viable project for us. This weekend, we tromped around our own 5 million dollar site that has a +/- 33 million dollar development potential. Gandalf and I had a great weekend up north at our resort property. We are very optimistic about the site that we found and I’ll let Gandalf steer the ship as I learn how to put deals like this togther.
Even if the first big deal fails, we’ve made some new fantastic contacts and I’ve watched how a greedy builder has alienated himself with some powerful allies by trying to keep too much control. He’s shown me how not to act when searching for a big deal.
I’m bringing this up because there are some very capable guys in here that continue to think that they need money to do deals like this. It’s not money that makes deals like this go, it’s ideas.
Ideas are things (Think and Grow Rich, by Napolean Hill). Things are worth money.
Think big. It takes the same effort.
blue
Replies
How long will Gandalf have to wait to receive the fruit of his labors?
Jon Blakemore
RappahannockINC.com Fredericksburg, VA
I thought Gandalf died in the first Lord of the Rings?
Oh wait... that's right... he comes back with white hair in the second one, right?
(Sorry Blue... couldn't resist)
Gandalf has told me that he would be splitting a 5% fee with the top dawg acct who actually knows the money guys. 5% of 5 million is $250k.
The 5% fee would be for the upfront money. I'd assume that the fee would be payed as the upfront money is delivered.
Gandalf has also explained that in most deals, he always took his money last, but took small amounts upfront for expenses.
One of the huge mistakes that the builder made was negotiating such a large upfront cash deal. He didn't bother to consult with the actual guys that would have to raise the money before tying up the property. It would have been much better to pay more for the property with less cash money up front, but this particular builder was/is out of his league and too stupid to take advice. Now he stands to lose about 25k beause he didn't know how to build in the proper contingincies. All he saw was the gold at the end of the rainbow, but failed to line up his ducks that would fly him over it!
blue
The Builder's deal is dead. He decided not to put up another 10 grand to extend theoption.
Gandalf and his contacts are now considering moving in and doing this deal directly.
Side note: I had an appointment with my Chiropractor today. I've know him for 20 years. I asked him how his investments were doing. "Not good", he replied. "I have a knack for turning big money into nothing!". I asked him if he'd be interested in investing in some bigger projects with my syndicator buddy. "Yes, I'd be very interested".
It's that simple to find money. If the project will make money, investors are everywhere. They are all sick of the poor returns in stocks.
blue