Lesson 6 -
How to Raise Money Abroad
By Gary Scott
Venture investors can be hard to find and this
note from a reader in England gives another important fact about raising money...
think big. Here is what he shared.
"Gary, I don't know if the ten times theory
hangs. Let me tell you a story.
"I was having real difficulty finding a
bank or venture investors that would finance the purchase of our house. I needed
150 000 pounds and had 60,000 to bring to the table. All kinds of people rejected
my submissions.
"Then I found what I thought was the venture
investors deal of a century. Several hectares - a whole hospital was going up
for sale. The council had granted permission for 650 two and three bedroom houses
and units, and an article in the newspaper revealed that the highest bid was 30
million. The bids were to close in 48 hours. So I contacted my bank, the ones
that refused me my home loan, and asked for 75 million dollars. They thought I
was joking, but when they had established that I wasn't, they sent me to the venture
investors 'centre' - a part of the bank that I never knew about previously. My
branch couldn't loan out more than 2 million, you see.
"In spite of promises to get back to me
with an answer in 24 hours, the venture investors group in the bank took longer.
But they did come back with a 'yes.' What is curious is that they couldn't care
less about who I was or what I earned. There was no way I could ever service 75
million with my salary ($80,000/year) so they didn't even ask for my resume, let
alone tax documents. As venture investors they were only interested in the deal.
"I rang the sellers to put in the bid but
they had closed bidding half an hour earlier. The hospital has sold for 30 million.
"I didn't mind, I'd learned a valuable
lesson: With venture investors reach for the sky and you will at least reach the
top of the trees. It seems to me that there are so many of us scrambling for mediocre
opportunities that the chances of realizing them become relatively small. On the
other hand there are so few of us who feel capable and worthy to reach for huge
opportunities that the chances of getting venture investors who have what you
want are exceptional.
"I watched the development with interest.
The cheapest 2 bed unit in the complex sold for 550,000 and the more expensive
ones for as much as 2 million. Even after finance and development costs, the developer
made a fortune. I imagine that the venture investors did as well."
This is a good lesson to realize if kept within
reason. Think big but be able to start small. More on this next lesson. Go to
lesson 7.
Until then, good investing.
You can increase profits, enhance security
and have extra tax and asset protection. Turn your passions into profit. Start
your own international business now! Learn how to raise money abroad.
Find out more about our complete course
International Business Made EZ at GaryScott.com
Gary
Sometimes
one picture is worth a thousand words
Global Business expands your horizons
|
