For those of you who’ve been following my blog, you know I’ve been working on some secretive deal regarding some oil deal. Well now its that time in the process when the rubber hits the road. The bank we’ve been dealing with has agreed to lend us $20 million. However, we need to show up in person in Connecticut pretty soon and deposit $200,000 with their attorney. The deposit is to make sure we don’t waste their time and money and then decide to go with a cheaper lender. Anyway, we’re going to be borrowing the money from private investors at a generous rate. Here’s the official spiel.
20% Return in 90 Days – Principal Guaranteed
We are in the process of closing on a $20M loan for a large oil and natural gas investment opportunity. We need $200,000 to be used as deposit to ensure that we will not go with another lender. This is a no-risk loan as the funds will never be used and will only sit in an escrow account during the entire closing process (this is the reason we can guarantee the principal back in case the project does not fund).
The full principal will be paid back within 45 days in case the loan does not get funded. For all purposes, we are 99% certain the loan will fund as all of the documentation and due diligence work has been provided and completed. The only remaining steps before closing are a face-to-face meeting with the lender and a site inspection visit of the mineral lease location. We are offering a 20% return over 90 days (80% annualized return) with full payout when the project gets funded. The minimum investment amount is $25,000.
If you’re interested, shoot me an email but more importantly wish us luck!
Incidentally, several people asked me how I came across this deal and what due diligence I did.
The short version is that it included being in the right place in the right time, asking a lot people a lot of stupid questions, flying out to the middle of freaking nowhere to look at a stupid oil pump & recognising that when commodity brokers and lenders are salivating at the prospect of giving a $20 million non-recourse loan, its probably a good deal.