Make Money Investing In Real World Businesses
Hello silent partner investment!!
Oh no! There are so many horror stories of people investing in their mate’s pub or bar or whatever, that the idea sends shivers up my spine.
But if you do your due diligence well, then just like there are property investors, you can become a business investor (aka silent partner).
The most important part of executing on this idea is only investing in businesses where you get a cash flow (owner distributions) every year or otherwise on an ongoing basis.
Waiting around for a sale and subsequent cash out is too risky for most people.
Unless of course you want to be the next partner at Kleiner Perkins VC!
If you know contacts that have successful businesses and years of experience, but just need a little extra cash in order to expand or start something new (but similar to their existing operations) then you could be onto something.
I always think of the classic example of someone who owns a couple car washes, and now wants to setup an automated car wash in a good location – there you have the coin Laundromat (passive income) idea, but it’s now being executed by someone with experience and operational expertise.