So far my investing has been going pretty good. [Apart from the small setback in the stock market crash of 2000.] I bought real estate in San Diego at the right time. I sold it at the peak. I got out of my other California properties right at the top too. I got into Salt Lake City right as it was about to take off. I bought some gold right before it made a 35% jump. So far I’ve been quite accurate at identifying investments trends and profiting from them.[Or maybe I’ve just been lucky!]
I’ve spent the past several months researching oil and gas and have even invested a bit in a small well and am about to invest in another one through my corporation’s pension plan. I also think oil is going to be the next highly touted investment. I bet some washed-out actor like Eric Estrada will appear on late night ads promoting oil investments in the next 2 years.
Everyone knows that oil has jumped to $70 per barrel but most people don’t know how to invest in it. Since I’ve figured out some of the steps and pitfalls, I think its time to capitalize on my knowledge. I’m planning on putting together an LLC with a partner which will pool in money from friends & family. Together we’ll invest in several projects, thus lowering the risk.
Not only will I invest my money along with them, I’ll take a small management fee. I’m thinking it’ll be in the range of 30% of the profits after the investors get 10%. If I can’t provide a 10% return then I really don’t deserve any profit-split, right? Although most financial overseers don’t agree with this philosophy, that was how Warren Buffet had originally set up his partnership. He got a 25% share of the profits after the first 6% was returned to investors.
Well I’m talking to an attorney about it tomorrow. I’ll let you know what I find out.