Q: why not have them purchase it directly ?
That would require me to get some sort of agreement or contract with them (which would be great) but I`m afraid they will see me as a competitor until they understand what I`m doing. so, I have to view investors as a competitor until we both can see the partnership potential.
I do not have the resources to compete with them at this time if they decide to start offering the same service. Currently they do not offer these services and I`m sure its because of their over estimation of the actual RISK exposure. To seek out partnerships this early would simply position me for exclusion. I have to ensure that I will gain a market share, until then I`m not offering them anything they can`t do or acquire on their own with the exception of what I already have under contract. Their resources and experience are superior at this time and I would love to have them in my corner as partners, But the only value I can bring to the table is the properties I`m accountable for. It would be hard for me to partner with someone who offers as little as I do, so I am hesitant to believe that investors would actually partner with me when they could partner with others and achieve the same result. Honestly, the only advantage I have is their overestimation of the true risk and underestimation of the actual potential, hopefully you can see the risk I would expose myself to if I actively sought partners, contracts, or agreements with investors without some guarantee to not compete.
It may sound unreasonable but I am willing to admit that I`m afraid of losing my opportunity to own my business and provide real value to homeowners while doing well myself. My business really doesn`t have competitors just other people and businesses that need time to find out that I`m really developing a partnership with them.
I could just do it all myself, take all the loss/gains, and try to become a monopoly. But thats not a good business plan, even if I could pull it off. But if I can develop an offering that is worthy of a partnership then I will be able to generate support for my company instead of opposition.
Will my company be great? I`m foolish enough to believe so. can it last if it is viewed as a market bully "no" The people would ask the government to step in (Bill Gates knows how that works out) . People will support a company with broad control and profits If and only if they perceive it as a benefit to them, not a bully. Banks and Insurance companies don`t get much love from their clients but their clients can`t imagine their service no longer being offered. So I guess it`s ok if people don`t necessarily love your company as long as they see it as necessary and/or beneficial.
well My goal is to still have a company at the end of the day, Partner with those who are already in the real estate business and generally make sure that all partners (homeowners are partners) get a fair shake in the deal. I know many companies say its not about the money its about the benefits of their product or service, I just want to be able to say it and be completely honest when I do. The money? can`t function without it , but I`m not foolish enough to re-invent the pet rock, I need stronger stability than that....
Q: Will you be doing something to the property before turning it over to them?
Ideally No, But things do change and I will adjust when necessary.
--- sorry for the long reply,--------
returning back to the reason I posted, have you heard of anyone offering funds to startups/small businesses as collateral in lieu of credit until the business can establish its own credit worthiness?
Thank you for your responses.
Menoz12/30/2007 3:44 PM