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2010 Top 10 Secrets for Private Placement Program (PPP) Transaction1.
Work with professionals. Within a few
phone calls or meetings you should be able to see the knowledge someone has
about private placement platforms and programs.
The character of individuals you meet will show itself and you should
work only with those that act with respect and can answer questions in an
intelligent manner. 2.
Transact business via the phone or in person.
NEVER attempt to waste your time going back and forth over email or
Skype. Although this may be an initial
form of communication, it should not be the only one. 3.
Consider programs that are 100M and above.
Banking instruments such as Medium Term Notes (MTNs), Bank Guarantees
(BGs), and Treasury Bills (T-bills) are purchased in 100M notes. There are a few instances, such as when a new
trader is starting out, where a pool of investors will put together 10M sums of
money together to purchase one note, but it is rare. 4.
Beware of large broker chains. These are
also known as daisy chains. They are
usually full of misrepresentation and conflicting information. Plus, so many of
them are worried about getting circumvented in the private placement program
that they will hesitate to put you in touch with someone that can actually perform
a transaction! Your time will be wasted filling out NCNDs. 5.
Focus on a successful transaction. Most people become so blinded by the money
involved that they become paranoid, refuse to work with certain people, become
greedy, try to circumvent their partners/brokers, and in the end everyone
loses. 6.
Network. Create as many resources in the
private placement world as possible, qualify new leads, and refuse to work with
anyone that is not genuine. Not only
will the sheer numbers help you execute a private placement program
transaction, but it will also help you learn about the industry and even gain
contacts that may help you in other aspects of your business. 7.
Avoid PING programs. Ping
programs simply do not exist. A line of
credit that the trader uses must be drawn upon an asset or account that does
not move or else the bank issuing the LOC takes an unnecessary risk in case the
LOC is not paid back. 8.
Follow the rules. ALWAYS follow
non-solicitation laws that regulate what you can and cannot say regarding
private placement programs, medium term notes, bank guarantees, and
T-bills. A “best efforts basis” is a
term often used when describing returns.
Never guarantee any type of returns.
You may, however, mention “historical” returns but, as any high
net-worth individual or investor knows, past performance is no guarantee of
future performance. 9.
Keep track of progress. Keep a record of
who has what connections or what team has performed in the past. Work with those that are professional and
knowledgeable in the field and keep an organized folder of any documents that
may have come across your desk. 10.
Do not only focus on Private Placement Programs. Remember, this form of funding is not the
only one available for commercial real estate or humanitarian projects. Many foundations may have money set aside for
projects and there are also private lenders, venture capitalists, and angel
investors that can help you obtain the funding you need for your businesses. Remember Article Tags: Private Placement Program, Private Placement, Placement Program Source: Free Articles from ArticlesFactory.com
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