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Old 11-04-2011, 03:05 PM
1 posts, read 1,105 times
Reputation: 10


I'm looking for some opinions on this investment / partnership opportunity. I've met with this guy twice and witnessed his business operations. Everything seems legitimate, and he seems like a good, honest person. I also know two acquaintances who have known this guy for years.....both tell me that he is trustworthy.

In any case, below is his description of this investment opportunity:

"Profitable & Established Surplus / Distribution Business Seeks Passive (Non-Working) Investor / Partner - 80% - 200% Annual ROI

I've been operating a successful and profitable surplus and distribution business for 3+ years. The business has been steadily growing, and I am currently looking for one (or potentially a few) investors / non-working partners who are looking for an excellent short-term return on their investment (but potentially ongoing).

This opportunity is extremely unique in that any investment that is made by an investment / partner will be used to purchase specific surplus inventory that the investor / partner will actually own. If the investor wants to sell their inventory on their own, that's no problem at all. However, I have a hunch that the investor would prefer to have my distribution company quickly sell the merchandise for an excellent and fast return.

Here is how this works: an investor / partner tells me that they are looking to invest x dollars ($1,000 is the minimum, so let's use that figure for this example). I literally have hundreds of wholesale / surplus contacts and sources that I've developed over the past 3+ years, and I typically review a few hundred offers per day! Keep in mind, I do this full-time, and I typically work 12 to 14 hours each day because I absolutely love this business. Trust me when I say that this business is my life! In any case, probably only 2% to 5% of the surplus offers (ie. 2 to 15 great deals each day) that I review each day are absolute bargains. As you can probably imagine, I do not and cannot (due to capital constraints) purchase every "screaming deal" that comes along.

Your investment would be used to purchase one of these great deals that I am normally "forced" to pass up. Over a period of a few days or weeks, I would present you with these potential offers as well as offer a turn-key sales strategy (requiring none of your time or effort) regarding the fastest way to re-sell this surplus merchandise, while maximizing your return on investment. As mentioned, I will take care of everything.....from purchasing, processing, warehousing, selling, shipping, your merchandise, etc. This absolutely will be a passive investment for you, but you will receive monthly statements, payouts, inventory reports and progress reports.

Let's say that you review several surplus opportunites and sales strategies, and you find one that interests you. Also, let's say that the total cost of the surplus merchandise plus the cost to re-sell, warehouse, ship, process, etc. this merchandise is $1,000. The entire package is turn-key, and no additional investment will ever be required from you. In most cases, you will get a detailed manifest of the merchandise, showing you exactly what you are purchasing. The minimum targeted investment return for these deals is at least 20%, and I typically strive to have these deals completed from start to finish in 3 months or less. That's an average return of 6.67% on your money every month, or an annualized return of 80%. In order to offer incentive for me, we will equally split the proceeds of any investment return in excess of 20%, as long as the investment is fully liquidated (and the cash returned to you) within 3 months or less. For instance, let's say we do a deal and earn a 50% return (which is very common) in 2 months. On a $1,000 investment, that is $500 profit. You would get $350, and I would earn $150. Keep in mind, that if you do not earn at least 20%, I do not make a penny. Also, if the investment is not completely liquidated within a 3 month timeframe, the threshold at which I share in the investment gains increases by 6.67% each month. For instance, if an investment takes 6 months to fully liquidate, I would not share in any investment gains unless the investor earned at least a 40% ROI.

In a typical investor / partner scenario, an investor invests in a business and then keeps his "fingers crossed" that he will hopefully get his money back at some unknown time in the future. The risks are generally huge, and many times it seems as if the investors investment was "eaten up" by overhead, salary and administrative expenses. When you see my business model, you will realize that I absolutely despise overhead costs......believe me, I've learned my lesson the hard way in a few other businesses. My current overhead is incredibly low, and I utilize dozens of long-term business partners who are all paid stricly on a performance / productivity basis. I go to great efforts to keep my business "lean and mean." In addition, as previously mentioned, your total investment is determined upfront, and no additional investment will ever be required. Better yet, at the end of each month, you will receive a payment for the full amount of the monthly sales of your merchandise, along with a statement showing your remaining inventory and the current and projected results of your investment. As such, your investment will be paid back to you each month.......not in one lump sum at some point "way out" in the future (which is much more risky). When a particular investment strategy is completed, which typically only takes 3 months or less, you can decide if you want to re-invest in another surplus offer / strategy, or just "take your money and run." There are absolutely no long-term commitments required from you whatsoever.

So how safe are these investment strategies? Believe me, it is easy to lose money in this business if you aren't extremely shrewd, do not have great sources for product and / or have a lot of overhead. Even more important is having the most efficient and effective sales strategy for your merchandise.......this absolutely has been the most valuable lesson that I've learned since getting into this business. I currently have a mailing list containing a few hundred wholesale clients who I've sold to (in bulk) in the past. I also frequently sell via live auctions, on Ebay, Craigslist, etc. Being able to develop the most effective and efficient sales strategy, and then having the sources, contacts and avenues to implement that sales strategy is the most important (and most difficult) part of this business. Remember, we are looking for good returns (typically 20% to 50+%)........but even more importantly, we want to move our merchandise FAST......usually in 3 months or less.

I see so many re-sellers who buy a lot of surplus merchandise, and then post hundreds (if not thousands) of items on Ebay or Amazon. The most popular items in the lot (typically a very small percentage of the total) may sell for a 300% to 500% mark-up. However, the majority of this merchandise is often times still listed for sale 2 to 3 years after the merchandise was initially purchased. This stuff undoubtedly represents "old and stale" merchandise that is not only tying up the resellers capital, but is also costing him money due to ongoing overhead and administrative costs. Remember "time absolutely is money"! Until it's all said and done, most times the re-seller in this example ends up losing money, instead of making a very nice profit / return if he would have employed the proper sales strategy.

As I've dramatically improved and refined both my buying and selling strategies (including making more and better contacts, sources and business relationships) over the past 2 years or so, I can honestly say that I haven't lost money on a single surplus purchase that I've made during that time. Although I certainly can't make the guarantee that any investor / partner will never lose money on any of these surplus purchases, I would be extremely disappointed in myself if every single deal did not make a profit / positive return. In a previous career, I was a financial advisor. I can honestly say that I've never seen a risk / reward opportunity nearly as good as these surplus opportunities.......since I figured out the best ways to buy and sell this stuff. Just as an example......if you buy a surplus lot of extremely popular tools for 20 cents on the dollar (ie. about 1/3 of what the retailers pay for them), and you have a wholesale list of at least 50 buyers who are willing to buy those same tools in quantity at a 50% mark-up over what I paid for them......how risky is that? By the way, the other aspect that I absolutely love about the surplus business is that there is absolutely no credit extended.......everything is paid COD or pre-paid before the product is shipped. There is absolutely no worrying about receivables.......which is wonderful (especially if that was a big problem for you in the past!).

I've made the minimum investment extremely minimal (ie. $1,000) because I absolutely want any partner / investor to feel extremely confident and secure in his investment in this venture. I'm hoping to develop an excellent working relationship with one (perhaps a few) partners / investors so that we can continue to do bigger and more profitable deals for years to come. The nice thing for me is that my business does not require an investor / partner; therefore, I'm only going to work with someone if I feel as if we would be a good fit together. Just because someone can "scrape together" $1,000 does not me that I will necessarily partner with them.

I think I've "rambled" on long enough about this business and opportunity. If you've read this far, I'm sure that it's apparent to you that I'm extremely excited, dedicated and committed to this business and opportunity. If interested, contact me and we can chat more and perhaps meet for lunch or something. Thank you."
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Old 11-04-2011, 07:42 PM
3,335 posts, read 2,702,742 times
Reputation: 921
With those kinds of returns.. why have partners.

Hire people at a nominal wage and give them profit sharing.

Otherwise it smells of a con.
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Old 11-05-2011, 12:23 AM
Location: Wisconsin
23,488 posts, read 50,021,638 times
Reputation: 18137
He can't hire anyone. Doesn't have the money for it. He wants capital to increase his business - i.e., buy these 'screaming deals.'.
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Old 11-05-2011, 12:28 PM
3,335 posts, read 2,702,742 times
Reputation: 921
Then they need patience.. screaming deals, big returns.

Stay on course and risk their own great returns... or start up a email spam fest generating from Nigeria.
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