DIRECT (734) 846-8619
Right now, there are far more people looking for private placement programs then ever. Even with such a small niche, approximately 2500 people type “private placement program” into Google every month. With this being the case, the private placement program / bank instrument business has unfortunately become polluted with more fraud then ever. Since I have met many individuals who have been victims, I felt it was necessary to give some tips to the brokers and prospective clients out there.
Private Placement Program Tips
1. Never tolerate broker chains in a private placement program transaction.
Private Placement Program deals never get done when there are more than 4 brokers involved (including the program manager and client’s representative). There ends up being too much greed, and information gets severaly distorted.
2. Only work with brokers/traders who say they have closed a transaction before.
Though there may be thousands of people out there who claim to have a private placement connection, most have never closed a deal. This can be something they have worked at for years upon years, with no success. What are the chances that anything will change? The fact is, if you are aggressive on the phone and ask them immediately if they have been paid, you can tell by their response and tone if they are lying or not. Use that, as well as their leve of intellect, as your guide.
3. If there is a famous name attached to the private placement deal, demand to speak with them to ensure you are not wasting your time.
There are a few people out there in the private placement program business, who are rather well known. If you come across someone who drops a name, be suspicious, but demand to speak with them. If you can verify that they are attached to the deal, you might be on the right path. Remember, there are only a few hundred people connected to a real private placement program in the entire world.
4. Do not work with brokers/traders who can’t answer every single question COMPLETELY to your satisfaction.
The thing that irritates me the most is that brokers try to sell private placement programs to everyone. The fact is, you are not supposed to sell private placement programs, they are invitation only. When greed and money comes into the equation, the “returns” on the private placement seem to inflate, and every question gives you the answer you want to hear. If you aren’t blown away by their professionalism, but written and verbal, then don’t waste your time. There are a bunch of idiots trying to get rich quick in the private placement program business, and you never want to become their Guinea Pig.
5. Never establish relationships through email or Skype, phone is the ONLY way.
Do you think that someone who closed a transaction, and was serious about business, would want to talk primarily through email or skype? I don’t think so. Anyone who is successful, and not trying to hide something, values their time, and would rather get deals done quick. The only way to establish relationships in the private placement program business is over the phone or face to face. People assess your tone, among other things, and email/Skype are much less effective since it only communicates through written format. If you are serious, you have to be very aggressive and assertive in this business.
6. Ratios are your friend, use them to make sure you are working with the best person you can find. Never settle for something that feels off.
There are literally thousands of people in the private placement program business. If you want to be successful, you have to pick up a phone and contact everyone you see out there online, for every single related keyword. In addition, you need to send mass emails to the thousands of addresses you can collect all over the internet related to private placement programs. Keep notes about everyone and rate them to make sure you have records of the people you were impressed by. At that point, you have to network aggressively through thousands of people, to find just a few real private placement program. Now, you have to be diligent about the transaction. Remember, ratios are your friend in the private placement program business. If you settle early, you will regret it later.
7. Use your gut instinct, but NEVER BLIND YOURSELF by thinking about the money you are promised. Focus on the transaction and celebrate later.
The most critical mistake is focusing on the money, and not the private placement program transaction. This is how many make rationalizations for the inconsistencies that evolve over the course of most fake transactions. Look straight ahead at what you have, and keep the money and celebration for after the transaction. Private Placement Program deals are not closed by those who are greedy, or those who put the cart before the horse.
8. If you are looking for private placement at less than 10M, YOU ARE WASTING YOUR TIME!!!!!
I know for a fact that their are no real private placement programs below 10M. If you get in with someone even at 1M, and it is a real trader, the returns will be very low, and you will be part of a pool of investors. When you are dealing with such private transactions, pooling money is very dangerous. One bad apple ruins the entire bunch, and you can waste tons of time and money. Don’t waste your time unless you have the capital. There are other investments at 1M that have GREAT yields and a whole lot more transparency.
9. You MUST always understand and follow non-solicitation laws, and NEVER state or guarantee the expected returns. All Private Placement Programs are based upon a “best efforts basis”, and never guarantee anything in terms of ROI.
If anyone ever tells you that they can guarantee a certain amount of return that seems very high, then hang up the phone. I can guarantee you one thing, they have never closed a deal, and they do not understand the non-solicitation laws. If you state approximate or forcasted returns to someone before they go through compliance, you are breaking the law and can be thrown in jail by the authorities. Private Placement Programs are no joke, you either do it right, or you can pay some sever consequences.
10. PING programs DO NOT EXIST in the REAL private placement program business. Stop wasting your time looking for them, and most importantly stop promoting them.
No bank will extend a line of credit to a trader who has no collateral in place. In essence, that is exactly what you are expecting to have happen when you try to enter PING private placement programs. If a collateral is blocked, conditionally assigned, or the trader is made a temporary beneficiary of the asset being pledged for private placement, the transaction can happen. This is not the case with a PING program, since THERE IS NO COLLATERAL IN PLACE for the bank to loan against. Even if the trader says they have their own line of credit ready, it doesn’t matter because they legally can’t trade their own money. They must use the collateral of another to stimulate the line of credit to start trading.
If the client expects to keep their money in their own account, and just miraculously make high returns, they are BLINDING THEMSELVES with ignorance, rather than looking at the common sense side of things. Remember the idea of the self fulfilling prophecy? People like to hear what they want to hear, but that isn’t very secure or safe.
For those who are serious about private placement programs, and alternative investments, please visit the website below. I have worked successfully in the private placement business for years, and we are very experienced in various high yield investments.
Remember, for every 1 successful investor who completes a private placement deal, there are another 1000 who waste time and money following their hopes, rather then their common sense. Be diligent, and contact us if you don’t want to deal with ignorant broker chains, and unsubstantiated claims.
Good luck, and be safe out there.
DIRECT (734) 846-8619