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Advice on this Business/Luxury Item Brokering Model Please...

by Scott Stevens
6 replies
Hi all,

Some advice please. I've been kicking around a business brokering-type concept for a while, but am stuck on an aspect of it and would like some advice please.

Here's the model:

1) Find a business/boat/helicopter that is on sale (not difficult). Phone them up and offer to refer potential buyers to them, for a percentage of the sale - as long as they still get their desired asking price as a minimum.

2) Place ads for the business/luxury item in various places (ebay/gumtree etc), for a price above the original price, allowing me to make a cut while still making sure the seller gets his minimum asking price.

3) Go back and forth between the seller and buyer with any questions buyers may have.

4) Potential buyer goes to visit the business/check equipment/test drive luxury item, etc (he's not going to buy without checking what he's buying first obviously).

5) Buyer agrees to buy the business/item and we use escrow account to take/send money between buyer and seller, making sure I get my cut before sending payment to seller.

The problem I foresee is when the buyer goes to visit the premises (if there is one), or checks the equipment, or test drives the item, etc. There is all likelihood the buyer will come face-to-face with the seller, and they will strike up a better deal between them, cutting me out of the equation - even though I referred the buyer to the seller.

Can anyone see a better way around this?

Cheers.
#advice #brokering #business or luxury #item #model
  • Profile picture of the author marketingstatic
    Honestly I could be mistaken but if you go high dollar items they most likely already have a broker. Soit sounds kind of like your asking to learn how to be a broker or you need to find out where NEWBIE brokers hang out and ask for a cut buy helping them. Its just an off the top of mind idea as I know back in the day when I was a NEWB in Insurance -Finance and Mortgage when you become a broker they basically gave me a desk and a phone book and said have fun and occasionally we got piece meal half assed training. So maybe find a place where such brokers are and offer to help for a shared fee.
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  • Profile picture of the author misterme
    You're thinking of offering a high end brokerage service for expensive goods like helicopters and businesses and you're not going to personally introduce possible buyers to the seller and be there to help make the sale?
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    • Profile picture of the author unglued
      Scotty,

      Have you ever considered taking (purchasing, and relatively inexpensively) a legally binding option to buy these high ticket items yourself and then merely flipping the paper prior to the closing date for whatever margin you and your prospective buyer agree on ?

      A properly structured option can be assigned to an eventual third party for a commission with much less headache and even more circumstantial leverage than the scenario you described in the OP.

      It effectively uses simple contract law with near-breathtaking simplicity to prevent both the seller AND your buyer from cutting you out of profit. There's not even a moral imperative to inform the seller up front of your intention to flip the deal.

      Sounds like what you want to do was made for using options. This is where I would start if I were in your shoes.

      unglued
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      • Profile picture of the author Scott Stevens
        Originally Posted by unglued View Post

        Scotty,

        Have you ever considered taking (purchasing, and relatively inexpensively) a legally binding option to buy these high ticket items yourself and then merely flipping the paper prior to the closing date for whatever margin you and your prospective buyer agree on ?

        A properly structured option can be assigned to an eventual third party for a commission with much less headache and even more circumstantial leverage than the scenario you described in the OP.

        It effectively uses simple contract law with near-breathtaking simplicity to prevent both the seller AND your buyer from cutting you out of profit. There's not even a moral imperative to inform the seller up front of your intention to flip the deal.

        Sounds like what you want to do was made for using options. This is where I would start if I were in your shoes.

        unglued
        Unglued, this is exactly the advice I was looking for, and solves the problem I foresaw. A bit of tweaking and I think I'm good to go. I need to see my lawyer to get something sorted so I can use this.

        Thanks a million.
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        Yours in prosperity,
        Skochy - The Musical Salesman

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        • Profile picture of the author unglued
          Sure thing, man. Anytime.

          There's a quick and dirty learning curve for around $30 at the late Jim Straw's website that is worth the investment many times over. Look for a reference to "...real estate you don't own".

          I'm not an affiliate, but I own it, and it's both good and concise, just like everything else Jim produced.

          Keep us posted on how you do in this new endeavor. I like to hear about guys and gals kickin' ass on their own terms. Who dares, wins ! Good luck and go get 'em !

          unglued
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          • Profile picture of the author Scott Stevens
            Originally Posted by unglued View Post

            Sure thing, man. Anytime.

            There's a quick and dirty learning curve for around $30 at the late Jim Straw's website that is worth the investment many times over. Look for a reference to "...real estate you don't own".

            I'm not an affiliate, but I own it, and it's both good and concise, just like everything else Jim produced.

            Keep us posted on how you do in this new endeavor. I like to hear about guys and gals kickin' ass on their own terms. Who dares, wins ! Good luck and go get 'em !

            unglued
            Nice, there's some good stuff on that website - thanks for the tip.

            And the 'real estate you don't own' report says it will work on anything, not just real estate. Haven't checked to see if it will work in the UK, but i'm getting the report.

            Thanks again unglued.
            Signature

            Yours in prosperity,
            Skochy - The Musical Salesman

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