ForumsStarting a Business

I hope that was an open invitation because I would like to
talk to you also. email me at tfs_processing@yahoo.com

I think if you share and co-ordinate your ideas with people privately or outside this forum, you could possibly come to a sound understanding of your venture. Next, simply accumulate your thoughts and ideas on paper or your computer so it will be easier for to write a business, marketing plan. Now, this is not necessarily a plan for you to submit to any one but a template to understand your strengths and weakness as you take steps closer to your goal. One never really knows where they will end up and remember, you will always meet people who will discourage your ideas, they are to be taken like smoke in the wind.

I am a mechanic by trade and pursued auto for two years. I switched to construction labor and made a lot of money there enough to start a recycling business which I owned for 6 years, that business grew until I was made an offer I did not refuse and sold, a point of growing my business. After a couple of years I became a principal in a residential building business, a startup, with the combined efforts of this business we grew that business from 300k to 6MM in revenues, at that point I sold my stake and started a transportation business in 1996 with a partner, through our efforts we grew the business from 150k to 5.5MM, this company grew into a freight brokerage, transportation company with 3 divisions, we had become the largest employer in the area, we sold to a competitor.

The reason I am telling you this is one never knows the path you will travel, I did not foresee any of the above, although I did take action and made sound decisions when oppotunity presented itself, along with planning and managing all the businesses to the best of my ability. I now work from my home trading futures/options, bonds and anything else I feel comfortable with. I am now 42. Knowledge and action are twins, each glorifying the other.

This is a equity firm, review their website cpequity.com and for other answers in regard to your Pool Investment idea, you can go to this website greencompany.com.

I am aware of them simply because I have dealt with both of these companies. Both are helpful, any questions you may have about investment, tax and law will be answered by greencompany.com, however if your question are not anwered by there FAQ than expect to pay for their time. As far as private equity questions, cpequity.com are very competent, located in Connecticut (nice place) and there is a possiblity they may accomodate your questions.

I do not have a license to trade because I would be obligated by sanctioning bodies and I believe with the contacts I have and hardware/software I use there is not much in way of an advantage with a series 3. I have always felt if I really wanted to start a investment brokerage I would seek out a managing partner who is qualified. There are many ways to obtain your goal, it is not just the act of due diligence, it is about 'knowing thyself' and exactly what your capabilities are and what they are not. A good leader knows where he can excel and his limitations, you probably heard this before but I shall say this, 'two minds are better than one'.

Regards,

Greg

hi Anand,
I am Arjun. I have a strong passion in investment and on the process of opeaning an investment firm. I assume we will have mutual benefit if we discuss more about it. you can send me email at arjun_gnp@hotmail.com.

The two main players in Private Equity firms are those who bring in the money and those who bring in the deals.

If you are well connected to people with money you may want to focus on the former and can use that as a "door-opener" to possibly get into a PE firm. If not well-connected to money, then you would want to learn how to do the latter.

Anyone with a little specialized traning/focus can work with a Private Equity firm as a deal finder ... and get paid a very nice finder/referral fee. I know this because I work with many Private Equity firms and they are always looking for deal flow. If you don't get on and work internally with a Private Equity firm, you may want to focus on learning how to become a deal finder and bring deals to them.

Also, study how businesses are bought by sophisticated buyers/investors ... the methodology, uses of leverage, deal structure and resources they often use can be used by individuals on to buy your own businesses, even on smaller deals that most PE firms would pass on. I know this from experience as well.

Dennis Lowery
Adducent, Inc.

Hello Anand,

Your question about starting a private equity firm is fairly common, as private equity is exciting/challenging and the paycheck isn't bad either. It's great that you have a strong desire to enter private equity, and although you don't currently possess the traditional experience that general partners at private equity firms have, it doesn't mean you can't eventually.

You mentioned that you're in law school, well the head of the Carlyle Group, one of the most successful private equity firms out there, is David Rubenstein. Mr. Rubenstein started his career as a lawyer in New York after graduating from Univ. of Chicago law school, then he advised President Carter and eventually went on to start the Carlyle Group. My point is that although this isn't the typical path, you can still go on from nearly anywhere to work in private equity, with natural abilities, learned skills and some luck. (for more info on David Rubenstein: http://privateequityblogger.com/2008/09/david-rubenstein.html
It's rare (if it has ever happened?) that someone of your age opens a successful private equity firm because investors need to have some reason to believe you will bring them positive returns. And getting investors is only half the battle, you need to know how to perform due diligence and valuation, how to improve a company's performance, develop an exit strategy and satisfy investors throughout their commitment to the fund with reports on performance. I would suggest finding an internship in private equity to really figure out if it's what you're passionate about and if so, great, then work to build a reputation in the industry. Then maybe in not too long you can open that private equity firm and have a much easier time attracting investors and you will have all the technical tools to make those limited partners happy.

Best of luck,
Theo O'Brien
http://PrivateEquityBlogger.com

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I love this post i just got off the phone with my attorney
fri and he gave some good advice.

I first told him what i wanted to do iv been deep into the bulk REO and NPN world and want to grow a fund in
order to flip these packages

second i told him i would like the past of least resistance and equity fund is
not it
even though it sounds really sexy to tell someone i run a privet equity fund.

A LP is much easier to do.

If you do want to run a PF get partners that have and have a large track
record.
Second start small 100k one deal to build up your track record

Iv been in RE since i was 17 i helped make someone money at 18 and have started
over 6 company’s (s corps LLC C corps) only 3 broke 100k
and don’t tell anyone you are 22 grow a beard that is want i did it makes you
look 5 yrs older. And when people ask you how old you are tell them your 50 (in
a joking way)

if anyone is in the norcal area and would like to learn more about NPNS or bulk REOs let me know