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by makeworldbetter » Fri Jan 25, 2008 10:47 am
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makeworldbetter - Black Belt
- Posts: 1496
- Joined: Mon Jun 25, 2007 9:15 am
- Location: Silicon Valley
coolmax
I don't like the complexity of your deal, it just doesn't suit my taste. Why buy an entire mall when you can rent a spot inside a existing mall? If they really think this is going to profit a lot for them and worthy for $65M, why break the deal when you wouldn't put down $100,000.
Ok, I am just being skeptically. Let me share some of my experience with, I don't know, maybe one or few con artists.
After I setup a company and posted on Alibaba, I was being contacted by a big buyer type of person. I thing I noticed right away is that he is using a public domain email address and he wants to buy 2 million dollar worth of inventory. But other than that everything sounds just normal. He said his company is at London and is a big international buyer, bah bah bah... His phone number, area code is all London.
Everything goes smoothly, a little fast but not too fast. There are small obstacles but we soon overcame everything. They sure know how to fish. Funny thing is that all obstacles were coming from his end. His partner or his investors... I never see anything real.
At end, he wanted me to put down a thousand dollar or so, not a round number, looks real, to process a bank LC. I smell fishy and ask him to pay for it. He even became angry saying something like why wouldn't I put down such small money for a million dollar deal. I said I will give him discount worth more than $5000 if he pay first. Then he cooled down and make another reason and ask to see several samples. Funny he hasn't see any sample yet and he wanted to place million dollar order. I figure since he couldn't reach his primary target, now he is after the secondary one. I said sure, My friend live at your nearby area and he can personally delivery those samples to your company. (I don't have such a friend) And never answered.
Later, I encounter other buyers also from London, different name, different email address (public domain), Yet the writing is just like his. He asked for different smaller thing or money I forgot. But at end, everytime I ask him to put down something solid, he become angry and then disappear. I figure those are all him, he tried to get me after he learned me a little better. But eventually he gave up.
I hope your potential inventors are not a con artist, just be aware of anything too good to be true and you need to verify they are real. Ask them fly over to meet you, they hate that. They hate to take anything out of their pocket. Tell them you will be their nearby area next week and ask to meet face to face at their facility. They also hate that since they don't have one. Hahaha
I don't like the complexity of your deal, it just doesn't suit my taste. Why buy an entire mall when you can rent a spot inside a existing mall? If they really think this is going to profit a lot for them and worthy for $65M, why break the deal when you wouldn't put down $100,000.
Ok, I am just being skeptically. Let me share some of my experience with, I don't know, maybe one or few con artists.
After I setup a company and posted on Alibaba, I was being contacted by a big buyer type of person. I thing I noticed right away is that he is using a public domain email address and he wants to buy 2 million dollar worth of inventory. But other than that everything sounds just normal. He said his company is at London and is a big international buyer, bah bah bah... His phone number, area code is all London.
Everything goes smoothly, a little fast but not too fast. There are small obstacles but we soon overcame everything. They sure know how to fish. Funny thing is that all obstacles were coming from his end. His partner or his investors... I never see anything real.
At end, he wanted me to put down a thousand dollar or so, not a round number, looks real, to process a bank LC. I smell fishy and ask him to pay for it. He even became angry saying something like why wouldn't I put down such small money for a million dollar deal. I said I will give him discount worth more than $5000 if he pay first. Then he cooled down and make another reason and ask to see several samples. Funny he hasn't see any sample yet and he wanted to place million dollar order. I figure since he couldn't reach his primary target, now he is after the secondary one. I said sure, My friend live at your nearby area and he can personally delivery those samples to your company. (I don't have such a friend) And never answered.
Later, I encounter other buyers also from London, different name, different email address (public domain), Yet the writing is just like his. He asked for different smaller thing or money I forgot. But at end, everytime I ask him to put down something solid, he become angry and then disappear. I figure those are all him, he tried to get me after he learned me a little better. But eventually he gave up.
I hope your potential inventors are not a con artist, just be aware of anything too good to be true and you need to verify they are real. Ask them fly over to meet you, they hate that. They hate to take anything out of their pocket. Tell them you will be their nearby area next week and ask to meet face to face at their facility. They also hate that since they don't have one. Hahaha
by coolmax » Tue Jan 29, 2008 5:38 am
- coolmax
- Yellow Belt
- Posts: 77
- Joined: Tue Oct 24, 2006 8:04 pm
MWB would you really put out $100 Thousand dollars of your own money on a deal that my not pan out on the other end without some sort of commitment from the Investor?
In my last post I forget to mention that the Foreign Investor was a Mortgage Realtor Broker.
The other thing is that I had a face to face meeting with the front person that was making all the contacts & helping putting the deal together.
The front person signed all my paperwork & saw my Invention.
We had scheduled a two (2) hour meeting & it took five (5) hours, we could have talked longer but we both had other commitments.
The front person understood that I was not going to put out any of my own money up front & they also understood that I was going to need $100 Thousnad dollars for appraisal only.
On the other note that you where talking about the thing to do is ask for there mailing address, phone & fax numbers, bank account & routing numbers & attorney Information along with any other contact Information that they have.
Then tell them that you need a few days to check out all the Information that they have supplied to verify that they are who they say thay are.
Then tell them that if all the Information checks out that you will open a new bank account for a bank to bank wire transfer for this transaction.
If they are legitimate it's not a problem.
The bogus ones you will never hear from again.
Another way to spot the bogus ones is by the wording of the e-mails.
Don't be Intimidated because they have money that you want or need, it just shows that your a business person that does some due-diligence before making a business decision.
You have nothing to lose because you had nothing before you received there e-mail.
If your desperate to make a deal you will make the wrong deal.
The business of helping small businesses raise capital is chocked full of people who over-promise and under-deliver.
In my last post I forget to mention that the Foreign Investor was a Mortgage Realtor Broker.
The other thing is that I had a face to face meeting with the front person that was making all the contacts & helping putting the deal together.
The front person signed all my paperwork & saw my Invention.
We had scheduled a two (2) hour meeting & it took five (5) hours, we could have talked longer but we both had other commitments.
The front person understood that I was not going to put out any of my own money up front & they also understood that I was going to need $100 Thousnad dollars for appraisal only.
On the other note that you where talking about the thing to do is ask for there mailing address, phone & fax numbers, bank account & routing numbers & attorney Information along with any other contact Information that they have.
Then tell them that you need a few days to check out all the Information that they have supplied to verify that they are who they say thay are.
Then tell them that if all the Information checks out that you will open a new bank account for a bank to bank wire transfer for this transaction.
If they are legitimate it's not a problem.
The bogus ones you will never hear from again.
Another way to spot the bogus ones is by the wording of the e-mails.
Don't be Intimidated because they have money that you want or need, it just shows that your a business person that does some due-diligence before making a business decision.
You have nothing to lose because you had nothing before you received there e-mail.
If your desperate to make a deal you will make the wrong deal.
The business of helping small businesses raise capital is chocked full of people who over-promise and under-deliver.
Last edited by coolmax on Thu Feb 07, 2008 2:00 am, edited 1 time in total.
Re: Capital
by makeworldbetter » Tue Jan 29, 2008 10:24 am
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makeworldbetter - Black Belt
- Posts: 1496
- Joined: Mon Jun 25, 2007 9:15 am
- Location: Silicon Valley
coolmax wrote:The last Angel Investor I talked to for 65 Million dollars wanted me to buy 30 million dollars worth or Real Estate all over the world for Manufacturing & Retail spaces.
I didn't have a problem with that, but I was not going to put out 100 Thousand dollars of my own money for appraisals.
I asked for up front money for that purpose only, the Real Estate market is unstable now so they did not want to do that.
I wanted the Investor to be committed to the project with there funds & not spend my funds.
What kind of investor would invest 65M but turn away by 100K spending?
You are right, you shouldn't spend your own money.
I just feel funny that your investors would ask you to put out your money out front into this deal. If they ask you for some collaterals, like pledge your house, I would understand. At least, that's something they can't transfer illegally. If they want to take you for a ride too far out, I would just say "No thank you!"
Sometime, merely confirm phone number, address... isn't enough, especially when hundreds of thousand or millions are involved.
Again, I must point out that I don't understand why buying foreign properties became part of your invention business. I feel that has complicated the deal and maybe you are veering away from your track to success.[/b]
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