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Home / Investing / Investing $1 Million Dollars – How To Make It Two Million In 6 Months

Investing $1 Million Dollars – How To Make It Two Million In 6 Months

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Investing one million dollars to double it in 6 months is not as difficult as one might think. To take a $20 note and trying to double that into $40 may sound easy and it is, but it is a 100% return. So why would doubling a million dollars be any harder. This article explores one way to double one million dollars.

The secret to doubling 1 million dollars is to use higher equity levels. If I wanted to invest my million dollars in such a way that I get 2 million back, I would need to deal in assets that are in demand that are valued in the 15 million to 20 million price range.

In fact, I don’t even need to use or risk my million dollars to achieve this. If I wanted to do a deal where there is a million dollar profit, I don’t need to buy the asset to do the deal, I just need temporary legal control of the asset.

For example, let us say we are looking at buying and selling “Blue Poles” by Jackson Pollock. He was an alcoholic abstract expressionist from the forties that really did some remarkable work. This style of painting is also known as splash painting, because the abstract painting is nothing more than a series of splashes of paint, however done with a overlaying design which is what makes it special.

This painting is owned by a New York art dealer currently and he wants to sell. He has put $23 million on the painting but will negotiate. My first action would be to verify the painting and also create a digital inventory of the painting to show a new buyer. People don’t always by things for price alone and even though such paintings are generally bought as an investment, in many cases, the rich want to own a piece of modern society or they just love the painting. It is not always about paying the lowest possible price for a painting.

My job would be to find a buyer who wants the painting, not for an investment, but because they would just love to own the painting and get bragging rights. This type of buyers utility is less about best possible price and more about ownership.

Once found, this buyer may not be sensitive at all to you asking $24 million for the painting. It is only a small percentage increase, but in real terms, there is a million dollar profit for you if you can make the new buyer happy in all respects. For example, arranging insurance and transportation and even, getting them coffee while they are viewing the painting. All these small things add up and if the new buyer is happy, he will purchase the painting from you at the higher price. This is known as a “middle man” type of deal.

On settlement, you would arrange a legal instrument called an exclusive agreement with the original owner of the picture. This would be easy to get him to agree to, because all you want is a 3 day exclusive agreement. You tell him that you may have a buyer and you need control until the buyer signs and pays. It is quite a simple thing. But make sure your ethical standards are high. There is nothing wrong or illegal about you making an immediate profit from an asset you do not own, but you must not lie to anybody at any time about anything.

Once the check is handed to you, your solicitor arranges for payment of the $23 million to the old owner, and deposits $1 million into your account. The new owner get his insured painting delivered as you promised to the letter. Everyone is happy, but most of all you!


Martin Thomas
Investing
http://ezinearticles.com/?Investing-$1-Million-Dollars—How-To-Make-It-Two-Million-In-6-Months&id=920052

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