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How do I phrase my post to help me find an investor?

I saw a post written by Paul E. saying that investors expect exceptional returns. What do they consider exceptional ? I have been trying to find an investor to help me purchase a stable, profitable business in California. I needed an investor with $ 450 k to invest. I wanted him/her to invest for 36 months and I was willing to pay him/her up to $ 20,000 a month for the investment. I think that's a pretty good return. How can I find an interested investor ?

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Answers (6)
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R A

Thanks for the help. I have talk to other so-called investors on here and no one ebver said that they had a problem with a set term. Some even asked for a shorter term. My original plan was to find multiple, smaller investors but since I am trying to purchase this business before the owner puts it on the market, I am kind of in a time crunch. The though never occurred to me that someone might try to steal the business out from under me.Thank you all for your advice.

Jul 1, 2010
Paul E
Front Line Plans
Business Plans for Entrepreneurs
Westchester County, NY

Rebecca,

Ignore my last answer. After I wrote it I saw your other post where you did supply alot of information!

Good luck!

Paul

Jul 1, 2010
Paul E
Front Line Plans
Business Plans for Entrepreneurs
Westchester County, NY

Rebecca,

To clarify my "exceptional" return statement should be exceptional return relative to the risk.

Since you are actually looking for a loan, as John pointed out, you will need to demonstrate the ability of the business to make the payments. Debt and equity investors are very different breeds.

But both type want to see the numbers quickly. "Show me the money". You can't post a full blown business plan here but I would put up as much basic info as possible.

IE: California Gadget Distributor-established 1997
2009 revenue $ 1.2 Mill
2009 Profit $ 300,000
Company distributes gadgets to over 300 accounts throughout California and Nevada
Company is debt free-owner retiring
Loan secured by accounts receivable, building, vehicles and other assets.
Seeking $ 450,000 debt funding at 20% interest or equity funding

This at least gives them something to consider. Never know might find someone familiar with the type of business or someone in the area.

Jul 1, 2010
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Rebecca, I am no expert but I agree with Don and I also agree with what Paul said. The thing sticks out in my mind when i see your posts is that you really aren't looking for an investor, you are looking for a loan. I can't picture anyone giving you 450k or 300k for that matter for a loan. Paul mentioned in his post that investors want equity--- they want a piece of the company. For a 450k risk I would want a lifetime return and a HUGE part of the company.
Another thing that sticks out in my mind is that it seems that the place you are going to buy seems fairly easy to run. I REALLY could see someone wining and dining you and taking the deal from you and keep all the money for themselves.
I know a guy who looks into distressed restaurants with good locations and after he declines to buy or invest in their restaurant, calls the landlord and tells them to call him when they go under. i know it is a different situation but the basic premise could work against you.

Jun 30, 2010
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R A

Thank you for the advice.

Jun 30, 2010
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The BAF Group LLC
MD

I would not look here. This is essentially for buying and selling businesses. People that are true investors are not going to go on line and look in a database that is designed for another purpose.

We have dealt with obtaining hard money and angel investors. We can't do you any good, because of the geography: Most investors will want to put their money in areas of the World with which they are familiar, and where they can keep an eye of their investment, if they wish.

My suggestion is that you look for Attorneys and Accountants who have the kind of clientele you need to reach, and who practice in your general area. NETWORKING is the key - not the Internet - when you are seeking investors. Pitch those Attorneys and Accountants for referrals. The vast majority of what you will find on the net are con artists and wanna-be types, when looking for money like this.

And giving them a good return is great; but do you have an incredible Business Plan to demonstrate you can do what you say you intend to do?

Jun 30, 2010