He Drives A $500,000 Car?

[SpellZ]

So I read this article today... and I'm still a bit clueless on what exactly that he does...

From what I understand is that... He invests in startup companies? Companies that don't even have a website or a registered name, but just an idea? They come to him (because bank rejected them?) and say, "I need $5000 to start my company" he goes.. "Okay, but in return I want $6000 back in 1 month"...

Two questions:

1. Clearly he doesn't get people coming and asking for $150,000, so how can he make big money from $1000/month?

2. Since he does the legal way, if people don't return the money, the bank goes after them and takes their assets, sells it for money, and then he still gets his $6000

... So how did he reach $500,000 just for the car?

My other guess is that he becomes a partner of the new company at 1% - 50% and whatever the company makes, he makes 50% of that...

 

[wowhaxor]

You're making a lot of assumptions...

Judging by his lifestyle I very much doubt he's making $5,000 loans. Probably more like multi million dollar loans and he's on the board of an investment firm he doesn't have his own company.

Also this is not a traditional loan that people pay back, more likely they get stock in the startup that increases greatly in value when the company succeeds.

 

[H3ktor]

And it is his 28th car...f**k!!!

 

[SpellZ]

Also this is not a traditional loan that people pay back, more likely they get stock in the startup that increases greatly in value when the company succeeds.

So pretty much what I said?

They give the person $100,000, but in return the own 50% (example) if their company?

 

[SpellZ]

What Does Asset Management Company - AMC Mean?
A company that invests its clients' pooled fund into securities that match its declared financial objectives. Asset management companies provide investors with more diversification and investing options than they would have by themselves.

Investopedia explains Asset Management Company - AMC
Mutual funds, hedge funds and pension plans are all run by asset management companies. These companies earn income by charging service fees to their clients.

AMCs offer their clients more diversification because they have a larger pool of resources than the individual investor. Pooling assets together and paying out proportional returns allows investors to avoid minimum investment requirements often required when purchasing securities on their own, as well as the ability to invest in a larger set of securities with a smaller investment.

... still no clue wtf it means lol

 

[bstsystems]

What is there to not understand...? You listed the definition right there.
"A company that invests its clients' pooled fund into securities"

What he is doing is "investing" the client's money. He is doing it very well, using different techniques, and making the client so much money, that the client is happy to pay him a % of the earnings, or a fee.

I recently looked at forbes list of billionaires, and a large portion of them are hedge fund managers. I'm not sure what the difference is between the two, I would think they do about the same thing. But if you have let's say a billion dollars of various client's money, and you increase that portfolio by 20% in one year, you just made them $200,000,000. Then, you simply charge them 5% of what you made them, or $10,000,000. Then you just keep doing that, and growing the size of the portfolio so you can make even more. It isn't hard if you're successful because happy people tell their other rich friends, then they invest w/ u.

 

[Mollowbass]

That's my car he borrowed .. just my 2 cents!

 

[Kickflip]

Sounds like Mafia Money to me. I give you the money you need to survive, you give me half your profits every month for the rest of your life.

 

[hgear]

I just jizzed in my pants ... that guy is ballin

 

[eLectricDG]

Sounds like Mafia Money to me. I give you the money you need to survive, you give me half your profits every month for the rest of your life.

Sounds like you got it right. Higher 1% of the wealthy.

 

[Grandslam]

Its just another bubble. This time its in China instead of the US. The hot spots move around the globe from time to time.

Once the US economy (completely) tanks, so does China's. We buy their shit - our consumers are the reason for their current prosperity.

Order of events (IMHO):

We buy their shit.

They get rich.

We hit a depression.

We stop buying their shit.

They stop getting rich.

They hit a depression.

Rinse and repeat.


We'll see where this guy is in 5 years. With that pompous of an attitude, things can get out of hand really quick... especially when you're wearing jean short but driving a Lamborghini.

He needs an image consultant. Badly.

 

[silentthunder]

Nothing new about venture capitalism. Nice feckin car. I love everything Lamborghini. Venture capital
is usually $100,000 and up for start ups and IPOs. Maybe he's using some of that $50,000,000,000.00 (50 Billion)
in cash U.S. siphons out of it's own country with Walmart stores and their
Chinese manufacturing. :croc:

 

[SpellZ]

What he is doing is "investing" the client's money. He is doing it very well, using different techniques, and making the client so much money, that the client is happy to pay him a % of the earnings, or a fee.

Call me a dumbass, but I'm still not sure what "techniques" you can have when I come to you, ask you for $100,000, you tell me,"$100K for 50% of your company", I say "OK".

Done.

 

[Grandslam]

Call me a dumbass, but I'm still not sure what "techniques" you can have when I come to you, ask you for $100,000, you tell me,"$100K for 50% of your company", I say "OK".

Done.

Its more complicated than that. The guy in that article just wanted to make himself sound like a BAMF, like he has some special powers when it come to choosing winning companies to invest in.

Its comes down to financials and predicitability in the end. "Will it make money?"

 

[MojoSoDope]

A 2008 Lambroghini Murceilago is around $5000 a month on a 48 month loan. Alot of people here can easily afford that.

$5k a month? I doubt that, 2008 lambo rental for a day costs $1.5k

 

[hamandtoast]

So he's a bit like a dragon off dragons den (UK show)

 

[229tom]

No you are wrong 2008 lambo costs ~$140k = thats $3k/month for 48months if we dont count the interest

 

[MojoSoDope]

No you are wrong 2008 lambo costs ~$140k = thats $3k/month for 48months if we dont count the interest

LOL you're probably looking at the Gallardo, Murcielago is $350-500k

 

[229tom]

Indeed I am.
if you are from states you can get ~2006-7model for $100k

divided by 48months thats only $2k per month.

 

[MojoSoDope]

Indeed I am.
if you are from states you can get ~2006-7model for $100k

divided by 48months thats only $2k per month.

What model are you talking about bro? The Gallardo is the cheapest.