Investing $1 Million Dollars That You Do Not Have Yet

Why would you want to try and invest $1 million dollars that you do not as yet even have? Is it even legal? If you don’t have $1 million dollars how are you going to invest it anyway? The answers to all these intriguing questions and more can be found in this article, so read on…

First of all to answer the “why”

For the return of course. If you were able to invest $1 million dollars, even a 5% return would equal $50,000 dollars. Getting a 5% return is not exactly a difficult thing, you could simply put the million in a bank for a year and receive that $50,000 profit.

When considering wealth building strategies and your financial goals, a creative approach is sometimes necessary to create the returns we seek and borrowing a million dollars is one way to increase our returns. There is however, a problem. If you did find someone willing to lend you $1 million dollars, they would without a single doubt expect a return for the time frame you have borrowed that million, usually along the lines of what a bank would charge which would be in the single digits percentage.

Clearly if that is the case, we are backed to the wall, because the profit we expected from that million just transferred to the owner of the million leaving us with a futile look on our face. But what if, instead of you borrowing a million in cash, you legally borrowed equity or value.

This would be a different twist on the same concept. Let us say, we look in the local paper and found a riverfront mansion for $1.2 million dollars. You have kept your eye on the upper market for riverfront mansions and have concluded, that this house is being offered for sale cheap. It could easily fetch $1.4 or even $1.6 million because it has a boat harbor and also 20 rooms and well maintained gardens.

This value that you see and the remaining opportunity to collect a further $200,000 to $400,000 dollars on your insight about the true value of the house can be accessed and used to control the property for a short time. By using a legal instrument like an offer to buy.

Simply put, you place a token deposit and explain you have every intention to purchase on behalf of a buyer or friend, it is not their business what the actual arrangement is, all their side needs to know is that they are getting the possible opportunity to sell. You offer them what they are asking for the property and in the contract you may escape the contract if the new buyer decides he doesn’t want the house. In this way you can walk away if you fail to find a buyer at a higher price than the contract price. If you do find a buyer you can do a double close.

This is one way to borrow a million dollars and invest it for a return without actually having a million dollars in the first place.