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Investment opportunity: 1b isk, 30 days, 15% return.
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Stafford Magnus
School of Applied Knowledge
Caldari State
#1 - 2012-02-12 11:25:49 UTC
Seeing as the forum ate my first post - here we go again....


I'm looking for an investor willing to loan 1 billion isk for a month, upon maturity I'll return your 1 billion plus 15%. (1.15b)

So what's it for?

The idea is simple enough, set up two POSes to run two simple reactions into a complex reaction - then combine the output from that with another ingredient into T2 part manufacturing. The other ingredient will be manufactured by a corp mate.
The numbers have been crunched, 800 mill for POS and associated harvesters, reactors, guns etc and another 200 for shipping and fuel start up costs. I manufacture my own PI pos fuel so ongoing costs won't be as much of an issue.

What collateral are you putting up?

The only large assets I own (a dominix, a hulk, and a rokh) are at our home in nullsec - so if I were to sign them over to you for the duration of the loan they would be unreachable for you, although obviously they could be contracted and sold if I were to pull a shifty on you. The sum total of those three ships is also only worth about 400 million - so this investment would be largely based on trust.
Unfortunately I have no investment history to prove a clean record, but we all gotta start somewhere - afterall, putting this post up costs nothing and I won't get any investors at all if I don't ask, right? Big smile


So, there it is. 1billion for a month, you get 1.15 billion return.
Thanks for reading, and I hope to hear from you soon!
Tauranon
Weeesearch
CAStabouts
#2 - 2012-02-13 08:21:31 UTC
Financier would be taking 100% of the risk here for what sounds like a desire for you to make at least 800mil (otherwise you'd have to liquidate the assets at the end of the month), whilst offering 150mil.

There is nothing wrong with the payout ratios, but the risk profile has to be different for that ratio to be considered fair.

There are 3 obvious risks.
1 - towers go in your alliance space, and thats all thats ever heard about them again.

2 - war happens / jump freighter goes pop with mats, whatever.

3 - it doesn't make the 1.95bil gross needed before fuel to repay so repayment happens 2 or 3 months down the track - ie I concede its possible to make the payout, but not certain, so the investor has a nasty leveraged exposure - ie you can make 75% of your desired gross profit on the materials, but that will leave you only able to offer the investor 450mil back this month - ie less than 50% of what he was expecting, unless you liquidate the setup.

The plan doesn't have appear to have a good mats buffer in it, so I'd say #3 would be a concern. Spot prices are a concern if you can't avoid the market for a week.
Stafford Magnus
School of Applied Knowledge
Caldari State
#3 - 2012-02-13 14:53:55 UTC
Thanks for the input.

As it turns out a corp mate has agreed to front me the capital for a 20% return, if I don't/can't make the payment come months end at least he can directly take over my towers.