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i would like to know how i can structure an investment in to a contract rather than the asset. For example, if my friend John has an asset which i think is valuable but i have no money to buy it, package it and ship it, in order to arbitrage it and sell it to Jim, who has agreed to pay me cash on delivery. I want to therefor, get Jack NOT to loan me the money, but to invest in the contract (not the asset) for a return on his money, how would i go about that? How what kind of contract would that constitute as the contract will be upon the performance of the contract.
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Re: Investing in to a contract
First problem: you want to sell an item you don't own
Has John agreed to you selling it?
Without that agreement you can't have a contract with Jim for Jack to invest in!
Basically it has to be John who sells his item to Jim,
If you are lucky you get a commission, or you become John's agent.
leave Jack out of the equation... and if I was Jack I wouldn't touch such a scheme with a bargepole!!
And as far as I know arbitrage only refers to the simultaneous purchase and sale of financial instruments. -
Re: Investing in to a contract
John has agreed to sell to me and in turn has sent me an agreement. I have now changed the a few details (price, delivery points etc) on the agreement and sent to Jim. So in this case i am doing a kind of back to back sale and purchase, thus the similarities with arbitrage. Although arbitrage is the simultaneous sale and purchase of financial instruments, it doesn't mean you cannot do the same thing. Also the prescription of time is only relevant to what it is one is selling/purchasing and the time constraints which define that that asset/product/commodity.
I would have thought you would answer something with honesty instead of passing shots. It's up to Jack if he wants or can profit from a situation that he can take advantage of. I wasn't asking your opinion on the who may touch or not touch such a scheme.
Thank you anyway.Comment
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Re: Investing in to a contract
Any need to be rude in your reply Moruthane?Comment
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Re: Investing in to a contract
so we now have a little more info!
presumably john will not release goods until he has the money and Jim will not pay until he has the goods and you need Jack to supply the money to finish the deal!
You don't want Jack to loan you the money, but invest in a contract (is that the purchase contract perchance or the sale contract... there are two!)
And what pray is an investment if it is not a loan (with probably the hope of a profit)?
Has Jack agreed to this?
Anyway what you probably want is an Investors Agreement.
There are a number of templates available on the internet, but you will probably have to heavily modify one to fit your situation.
Finally this has nothing to do with, nor is like arbitrage, and if you don't want opinions don't post on open forums.Comment
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