I'm thinking out loud here, and curious is anyone has any experience in these fields, as feedback is open and appreciated at this point. I have a couple existing businesses moving along at a good speed, not much for me to do to push them faster, and my brain has a hard time relaxing. I'm looking into a few new things, and yes they do vary considerably in terms of time and investment. I'll list them below, in no particular order.
1. Collections/bad debt
- I just started looking into this a few days ago, after randomly seeing some portfolios for sale. I'm still researching which types of debt, and max age i would deal with. Ideal debt may be student loan write offs, or other debts incurred by younger individuals where i think there's a better chance of collecting. Working assumption is buying at .10 on the dollar +/- .05 with age and type. Then actually working the accounts directly with balances over $1k, or farming out the whole lot to an agency who to takes 30% of collected or so. A ideal example in that case would be 1k debt bought for $70, farmed to agency who settles it for 40% (400), give them 30% (120) and collect 230 on $70 investment. Unsure on liquidity rate, collections percentages, etc at this point. I may be more interested to start a real collection agency in house, start with maybe $2M in accounts to collect, and take a kill them with kindness approach, online negotiations through a website, etc making it much more debtor friendly since most want to avoid confrontation. The spreads are so large between original balance and debt purchase price, i think it warrants further research at the least.
2. Medical Device
- I have a device in mind, that's an improvement on an existing fetal heart rate monitoring system. I've been going through some meetings with my pregnant wife, and have heard voiced concern from nurse/doctors in regards to this antiquated piece of machinery. I see the product in my head, have researched some of how it works, and believe i can create the product i envision. I would have to hire out the engineering and prototype, and there are some similar patents on my search that would require further analysis to see if i could slide this in between existing patents. I am still unclear on how different a product needs to be to not infringe. Somewhat unrelated sample scenario - if i remove the connection wire, and work with a wireless system, does that still infringe.
3. Borrowing money at a premium to buy foreclosures direct from bank
- I have some property, and pursue a long term rental plan as it is. However i've come to see through local experience that the guys who are really making the money are buying cash at these local daily auctions, and turning the houses right back onto the market without touching them. To do this i need substantial capital, and i am comfortable doing the work and possess the skills. I cannot get hard money or other funding, since property needs to be paid with 24hrs of winning bid. However to get the capital required in my current situation, i would be paying a 10% premium once the loans are funded. Example if i pull down 200k, i've got to cut them a check for $20k afterwards, starting $20k in the hole. Should turn that in profit inside of the first 60-90 days, but i don't love the idea of paying for money.
I know there's a lot of successful people on this forum, and that's why i chose to put this up here, versus on a money related forum somewhere that i'll never go to again. I feel i can relate to others here, and respect their opinion appropriately, if only due to having the same car. Thanks !
1. Collections/bad debt
- I just started looking into this a few days ago, after randomly seeing some portfolios for sale. I'm still researching which types of debt, and max age i would deal with. Ideal debt may be student loan write offs, or other debts incurred by younger individuals where i think there's a better chance of collecting. Working assumption is buying at .10 on the dollar +/- .05 with age and type. Then actually working the accounts directly with balances over $1k, or farming out the whole lot to an agency who to takes 30% of collected or so. A ideal example in that case would be 1k debt bought for $70, farmed to agency who settles it for 40% (400), give them 30% (120) and collect 230 on $70 investment. Unsure on liquidity rate, collections percentages, etc at this point. I may be more interested to start a real collection agency in house, start with maybe $2M in accounts to collect, and take a kill them with kindness approach, online negotiations through a website, etc making it much more debtor friendly since most want to avoid confrontation. The spreads are so large between original balance and debt purchase price, i think it warrants further research at the least.
2. Medical Device
- I have a device in mind, that's an improvement on an existing fetal heart rate monitoring system. I've been going through some meetings with my pregnant wife, and have heard voiced concern from nurse/doctors in regards to this antiquated piece of machinery. I see the product in my head, have researched some of how it works, and believe i can create the product i envision. I would have to hire out the engineering and prototype, and there are some similar patents on my search that would require further analysis to see if i could slide this in between existing patents. I am still unclear on how different a product needs to be to not infringe. Somewhat unrelated sample scenario - if i remove the connection wire, and work with a wireless system, does that still infringe.
3. Borrowing money at a premium to buy foreclosures direct from bank
- I have some property, and pursue a long term rental plan as it is. However i've come to see through local experience that the guys who are really making the money are buying cash at these local daily auctions, and turning the houses right back onto the market without touching them. To do this i need substantial capital, and i am comfortable doing the work and possess the skills. I cannot get hard money or other funding, since property needs to be paid with 24hrs of winning bid. However to get the capital required in my current situation, i would be paying a 10% premium once the loans are funded. Example if i pull down 200k, i've got to cut them a check for $20k afterwards, starting $20k in the hole. Should turn that in profit inside of the first 60-90 days, but i don't love the idea of paying for money.
I know there's a lot of successful people on this forum, and that's why i chose to put this up here, versus on a money related forum somewhere that i'll never go to again. I feel i can relate to others here, and respect their opinion appropriately, if only due to having the same car. Thanks !
