Looking for large loan, will pay back 300%..

[tylercruz]

Hi Everyone,

First let me say that it was very difficult thinking of a title for this thread that wouldn't sound like another lame Internet proposition.

I am looking for an investor/investors to loan me $4000-$6000 (exact price is not known yet.)

I own a number of websites, but the majority of my income comes from my pride and joy, my movie site. It's around 4 years old, and I've worked on it every single day. I'm actually currently living off the income of the site itself now (just barely though!). From the very beginnings of my site, there has been another site which I've always been envious of having.. a site of the same genre which could be called my competition.

So I contacted the owner of the site (Who I've talked to previous times before, as we 'run' into each other from time to time, having the same genre of sites and all), and asked him if he'd be interested in selling the site. He was honest and said that he really loved his site, and would probably not sell it. However, I was persistant, and it appears that he 'weakens' at around the $4000 range.

He is currently making around $250 a month from the site, but he is not using as many ads as he could be (for example, almost of his pages only have one AdSense ad on them!). I believe that doubling this to $500 earnings a month would be no more difficult than adding another ad or two on the site.

Taking ownership of this site would benefit me more than just this $500 per month. Since the site is of the same genre as mine, after I eventually merge and integrate the sites together, I believe the residual effects would be enormous. Aside from usurping his traffic base which would bring additional daily traffic to my existing site, it would also thus help in Alexa rank, PR, and volunteer staff!

Now, I made a promise with the owner that I wouldn't divulge his site, so I am unable to share his URL with you. However I am able to answer any questions about the site, as long as it doesn't give away what the site is.

So I am looking for an investor to loan me 4-6 grand, and I would approach the owner again with this offer. If he accepted, then the transfer would go through (from you to him). How do you benefit? I would pay you back 300% of the amount you invested in to purchase the site through all the earnings of the site. We know that the site is currently making $250, and I believe that this can be increased to $500. So if you loaned me $5000, it would take me 30 months to pay back the original investment and the added 200% making it $15,000. I may be able to pay faster, of course, if the merging bodes very well for the site.

I would be paying back 100% of the earnings from the new site until the 300% was paid off. In addition, you could keep control of the domain (which is a necessity for the site) until all payments were finished.

Can you trust me? I understand it is difficult to trust somebody online for this amount of money, but I do have online references I can give; people that I have paid money to for their services and what not (programmers and designers I hire, etc.).

I will end by saying that the owner of the site may even turn down this offer! But he told me himself that he would strongly consider an offer for $5,000.

Please let me know if you are interested.

Thanks!

 

[mike031]

lol... are you kidding me k:

 

[daniel]

If you have one why not put it on a credit card and pay a much lower interest rate?

 

[tylercruz]

Hi daniel,

For one, my credit card is maxed at $500, and secondly, credit card rates are like 20%.. this would be MUCH more expensive than paying $15,000 back over a period of time, as the $15,000 is a fixed price.. the monthly interest of the credit card would be killer... for example, I 'take out' 6 grand. That's already $120 interest for the first month.. so it would take me years and years to pay it back, as I'd be taking 2 steps forward, and 1 step backwards this way..

 

[Mr Webname]

Moved to Advertising & Related Offers.

 

[Theo]

Hi daniel,

For one, my credit card is maxed at $500, and secondly, credit card rates are like 20%.. this would be MUCH more expensive than paying $15,000 back over a period of time, as the $15,000 is a fixed price.. the monthly interest of the credit card would be killer... for example, I 'take out' 6 grand. That's already $120 interest for the first month.. so it would take me years and years to pay it back, as I'd be taking 2 steps forward, and 1 step backwards this way..

Are you in the US?

A limit of $500 and APR of 20% is a sign of bad credit history. Or do I assume you are somewhere else?

 

[tylercruz]

I live in Canada.. I've actually never missed a payment in my life on my credit card (had it since I was 14), but I heard that MasterCard interest rates are around 20%..

 

[Theo]

Holy Molly. I have accounts with MC for 0% to 4%.

Anyway, to the subject: to get a loan of that kind you will need a business plan written that describes in details the project and how you intend to make profit out of that investment.

 

[Leading Names]

Holy Molly. I have accounts with MC for 0% to 4%.

Anyway, to the subject: to get a loan of that kind you will need a business plan written that describes in details the project and how you intend to make profit out of that investment.

Yup, or just ask a family member.

Also for a loan of 4-6k you may not need a business plan? In the UK I borrowed £5,000 just by going to the bank and talking to them about my ideas.

Things may be different in the US / Canada but in the UK banks seem to loan up to 5 thousand without one (in most cases).


- Rob

 

[Peace]

I suggest you try:

1. Business Development Bank of Canada - Owned by the government of Canada http://www.bdc.ca/en/home.htm

2. One of the Micro-credit providers. For more details check out this Industry Canada website: http://strategis.ic.gc.ca/epic/internet/insof-sdf.nsf/en/h_so03327e.html

However, you need a well written business plan before you approach them.

Good luck!

 

[gariben]

I have an easy solution.

We pay him the money, he transfers the domain to us, when you finished transferring $12,000-$18,000, we transfer the name to you!

Sounds good?

 

[tylercruz]

I have an easy solution.

We pay him the money, he transfers the domain to us, when you finished transferring $12,000-$18,000, we transfer the name to you!

Sounds good?

Yes, this is what I suggested in my original post And since the domain itself is worth at least a grand (and I'm not over-estimating either..) and is vital to the site, that is good collateral...

As for the banks, I would go to a bank for a loan, except I highly doubt they would lend me money for 2 reasons:

1. I make my living from my websites, and not a 'steady job'. I doubt they will be pleased with this.

2. Even with a nicely detailed business plan, I don't think they will love the idea of me not being able to provide the name of the site before purchase...

 

[Peace]

Business Development Bank of Canada & Micro-credit providers are mainly for people like yourself, who couldn't get regular bank loan. If you don't find anyone here to loan you the money, you should try them.

 

[mole]

Is it a good generic domain name?

 

[tylercruz]

Is it a good generic domain name?

Yes, most definitely. It's two words, dot com, both dictionary words..

 

[mvd]

send me a PM.

 

[tylercruz]

send me a PM.

PM Sent.

 

[StockDoctor]

Business Development Bank of Canada & Micro-credit providers are mainly for people like yourself, who couldn't get regular bank loan. If you don't find anyone here to loan you the money, you should try them.

Don't know about the Bank of Canada, but you'd have to go thru a few "steps" before you could get a small business loan from Microcredit of $5k. I was elected chairman of a Microcredit group for 3 years and the small (micro) businesses we approved for loans started with loans of $500 to $1k and took at least a year of steps, new loans and payment history before you could get to $5k and 2 years to get to $10k. Good group though to give Micro businesses somewhere to start.
Doc

 

[tylercruz]

I've had a few interested parties contact me for more information. I've thus composed a more concrete proposal below. If you have any questions, please contact me! Thanks.

Loan/Investment Contract Proposal:


Summary:
---------

Summary is listed via the first post of the thread at http://dnforum.com/showthread.php?t=65840&page=1&pp=15

Benefits to Investor:
---------------------

1. Would receive 300% of original loan over a period of time. Loan is expected to range from $4,000-$6,000 USD.

Benefits to Recipient:
---------------------

1. Would, over a period time, take ownership of a website.


Collateral:
-----------

1. Investor would receive full ownership of the domain to the website, which is an essential part to the site, until full payment (300%) was

paid. The domain is also worth at least $1000 on it's own.

Steps of Transaction:
---------------------

1. I would first reach an agreed purchase price with the current owner of the website. Once (and if) this price is agreed on, I would

contact the investor to confirm the selling price.

2. Investor would then send the payment to the seller.

3. Seller would transfer domain and web information to me.

4. I would transfer domain over to investor until loan was paid back.

5. 100% of profits from website would go directly back to the investor. In addition, any additional amount of cash would be paid back to the

investor if possible.

6. Once investor received 300% of original loan, he/she would tranfer the domain over to me.

 

[harleyx]

So what's your incentive to work on the site, once an investor puts the money into buying it?