investing in 'flips'.

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  • quiet
    we'll miss you our friend. RIP
    • Sep 2001
    • 25115

    #1

    investing in 'flips'.

    ie: buying small businesses that are starving for money, at much less than their actual worth.

    is this a viable way to make money if you have serious capital?
    we'll miss you our friend. RIP
  • slapass
    Too lazy to set a custom title
    • Nov 2002
    • 14625

    #2
    Yeah, this rocks if you have the know how.

    Comment

    • stocktrader23
      Let's do some business.
      • Jan 2003
      • 18781

      #3
      Warren Buffett sure thinks so!


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      • Digipimp
        BP4L OT DL
        • Mar 2003
        • 13481

        #4
        I think you can always find someone with knowledge and great ideas but not the money to put them into effect. You can find small businesses that are in the same type of situaiton and then bring your knowledge, money and whatever else you might have to it to make it much more successful.

        I think alot of people miss out on things because they are so greedy and secretive. There are always plenty of up and coming people with great know how that are struggling to make it happen, if someone with enough cash and knowledge pairs up with them a lot can be accomplished.

        Comment

        • Porn Mickey
          we all love porn
          • Nov 2001
          • 2840

          #5
          Originally posted by slapass
          Yeah, this rocks if you have the know how.
          and the question is how? I think quit is smart enough to know the answer, so canadian dude good luck
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          • strobi
            Confirmed User
            • Nov 2002
            • 7383

            #6
            waiting for a reply from KRL

            Comment

            • CaroMark
              Confirmed User
              • Sep 2002
              • 1357

              #7
              Sure it is. The majority of small business firms are under capitalized, however it is still a gamble when you make the investment. The question that really comes to mind is will your return be greater and worth the stress as to just making conservative investments in the market.
              Mark M, 727-433-0745
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              • KRL
                Entrepreneur
                • Oct 2002
                • 31429

                #8
                Yes and No. Have to really scrutinize the deals. Its very hard to find great management teams that can turn a small biz into a medium and larger biz. That's usually half the problem.

                Bricks and mortar businesses are a whole different set of possible things that can go wrong from virtual land's set.

                I would go more for the $1 to $5 Mil companies Quiet. Find an "owner retiring situation" where they don't need cash. Do some creative financing, put some aggressive managers in there, get sales boosted to $10 Mil with strong earnings and then flip it to a public company looking for earnings.

                We just bought a $4 Mil a year company that's about 15 years old for a bit over $500,000 plus some publicly traded stock worth less than half a mil. It can easily do double that rev in the industry its in. Classic retirement deal.
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                • scorpion3600
                  Confirmed User
                  • Jan 2003
                  • 623

                  #9
                  my observation is that small online businesses at a low purchase price have a much higher potential growth rate than many investments you can make in the markets or in which you have only a passive role. Having said that, risk is directly correlated with your knowledge - if you have reason to believe the venture will grow, that certainty (if well founded) is actually very low risk. I don't know who said it, but risk is a function of not knowing something (or conversely, objective confidence reduces risk)

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