46 min
What To Do When An Opportunity Presents Itself The Option Genius Podcast: Options Trading For Income and Growth
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- Investing
People literally ask me this one question ALL THE TIME… “Allen, how did come up with such a lucrative, safe, and easy way to trade?” I explain it all in my new book Passive Trading, get your free book here https://www.passivetrading.com/free-book!
Option Genius was built with you...the individual trader, the breadwinner, the dreamer, the rock your family depends on ...in mind. Because we know what it takes to become a successful and profitable trader. And that’s exactly what we help you do best. Get your $1 trial of Simon Says Options, our most conservative and profitable trading service here https://simonsaysoptions.com/stockslist-ss-trial-offer.
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The famous Baron Rothschild said that the time to buy is when there is blood in the streets. And Warren Buffet has said the time to invest is when others are fearful, to be greedy when others are fearful. But others are fearful for a reason, so is that actually the best advice? When is a good opportunity, and when is it a disaster that just looks like an opportunity? That's what I cover on this episode.
So how do we limit our risk and not do any of the work? That's a totally new way of looking at it, don't you think? I was pretty proud of myself when I came up with that question. How can we have a large upside with a small downside, and none of the work, none of the time? Because in the end, that's the most important and most precious thing we have, right? Time. We have to guard it as best we can.
So that question led us to a third solution. We could bring in somebody else as a partner who would be responsible for day to day operations and running the center. My wife would be there in the beginning to turn things around and to train this person, especially since she has done that before, and she knows the business, while she's training this new partner.
So that is what we did. We offered another woman and a friend of ours 50% of the business and the center to be the working partner. We would train her and support her until the place was running and doing well, and of course we would support her the whole time, because we're involved, but my wife would own 25% and our original partner would own the other 25%. so we're cutting our percentage down, right? We're taking less of the business, we're going to get less of the profits, but if all goes well, we won't have to do the work. Put up less money as well. Have a person in place that will run it, who has been trained by us. And if all goes well, eventually we make $5,000 a month instead of $10,000, but without having to do the work. Now, to me, that one sounds better. We turned a good opportunity into a wonderful opportunity.
Now, let's take a look at this from this new woman's perspective, right? This new partner that we're bringing in, let's call her N. Now, N has never worked in a daycare, but she wants to. She's been looking to buy a daycare or get involved with a daycare for months now. Financially, her family is struggling. Her husband has his own business, but that business is failing. It's going to close soon, so money is tight. Now, N is offered a 50% stake in a business that is currently losing money, right? It's losing anywhere from breaking even some months to losing about $5,000, $6,000 a month. She is required to put up more money than she has right now to take advantage of this situation. She's going to have to borrow that money. Maybe not all of it, but at least some of it.
So let's say she needs to come up with $50,000. Okay, that's 50,000 she doesn't have. The business will not make money for a while, and she's not going to get paid until the business can afford to pay her a salary. So she's looking at probably six months with nothing to show for it, but she's building up her own business, an asset. If she can borrow the $50,000, or however much she needs, and if she borrows it, she's probably going to have to make payments on it. So they're going to have to come up with some way to be
People literally ask me this one question ALL THE TIME… “Allen, how did come up with such a lucrative, safe, and easy way to trade?” I explain it all in my new book Passive Trading, get your free book here https://www.passivetrading.com/free-book!
Option Genius was built with you...the individual trader, the breadwinner, the dreamer, the rock your family depends on ...in mind. Because we know what it takes to become a successful and profitable trader. And that’s exactly what we help you do best. Get your $1 trial of Simon Says Options, our most conservative and profitable trading service here https://simonsaysoptions.com/stockslist-ss-trial-offer.
--
The famous Baron Rothschild said that the time to buy is when there is blood in the streets. And Warren Buffet has said the time to invest is when others are fearful, to be greedy when others are fearful. But others are fearful for a reason, so is that actually the best advice? When is a good opportunity, and when is it a disaster that just looks like an opportunity? That's what I cover on this episode.
So how do we limit our risk and not do any of the work? That's a totally new way of looking at it, don't you think? I was pretty proud of myself when I came up with that question. How can we have a large upside with a small downside, and none of the work, none of the time? Because in the end, that's the most important and most precious thing we have, right? Time. We have to guard it as best we can.
So that question led us to a third solution. We could bring in somebody else as a partner who would be responsible for day to day operations and running the center. My wife would be there in the beginning to turn things around and to train this person, especially since she has done that before, and she knows the business, while she's training this new partner.
So that is what we did. We offered another woman and a friend of ours 50% of the business and the center to be the working partner. We would train her and support her until the place was running and doing well, and of course we would support her the whole time, because we're involved, but my wife would own 25% and our original partner would own the other 25%. so we're cutting our percentage down, right? We're taking less of the business, we're going to get less of the profits, but if all goes well, we won't have to do the work. Put up less money as well. Have a person in place that will run it, who has been trained by us. And if all goes well, eventually we make $5,000 a month instead of $10,000, but without having to do the work. Now, to me, that one sounds better. We turned a good opportunity into a wonderful opportunity.
Now, let's take a look at this from this new woman's perspective, right? This new partner that we're bringing in, let's call her N. Now, N has never worked in a daycare, but she wants to. She's been looking to buy a daycare or get involved with a daycare for months now. Financially, her family is struggling. Her husband has his own business, but that business is failing. It's going to close soon, so money is tight. Now, N is offered a 50% stake in a business that is currently losing money, right? It's losing anywhere from breaking even some months to losing about $5,000, $6,000 a month. She is required to put up more money than she has right now to take advantage of this situation. She's going to have to borrow that money. Maybe not all of it, but at least some of it.
So let's say she needs to come up with $50,000. Okay, that's 50,000 she doesn't have. The business will not make money for a while, and she's not going to get paid until the business can afford to pay her a salary. So she's looking at probably six months with nothing to show for it, but she's building up her own business, an asset. If she can borrow the $50,000, or however much she needs, and if she borrows it, she's probably going to have to make payments on it. So they're going to have to come up with some way to be
46 min