What is our responsibility on OPM?

[Jeremy Hawkinson]

Just curious what’s y’all’s thoughts are on Other Peoples’ Money in a deal you put together. Quarantine time has given me more so much time to catch up on projects at home and business which means time catching up on podcast after podcast.

A common theme that comes up is OPM (Other Peoples’ Money). “I got into that place with 0 money down” or “I got person x to put the money up for this” this all sounds fantastic and is part of the lure right?? But the part that gets glanced over imo is that Is followed by “I have nothing of my own invested so Nothing at risk” kind of concept. Is it really that simple? You find an investor and present a deal and they know the risk and trust you so they put up the money but if it doesn’t work then just a “well sorry that didn’t work out”? Glad it’s not my money In there??

[Account Closed]

Originally posted by @Jeremy Hawkinson:

Just curious what’s y’all’s thoughts are on Other Peoples’ Money in a deal you put together. Quarantine time has given me more so much time to catch up on projects at home and business which means time catching up on podcast after podcast.

A common theme that comes up is OPM (Other Peoples’ Money). “I got into that place with 0 money down” or “I got person x to put the money up for this” this all sounds fantastic and is part of the lure right?? But the part that gets glanced over imo is that Is followed by “I have nothing of my own invested so Nothing at risk” kind of concept. Is it really that simple? You find an investor and present a deal and they know the risk and trust you so they put up the money but if it doesn’t work then just a “well sorry that didn’t work out”? Glad it’s not my money In there??

They just sue you, that's all. Not a big deal if you have $25,000 to $50,000 to spend on attorneys and two years to fight the lawsuit. Do not underestimate a scorned investor. Money is important to them and you stole it by losing it. Yeah, it's that serious to them.