If you are not willing to get rich quick through hard work or don’t have the luck and chance to do it in the other ways, don’t worry. There are still few options left. Do you want a less risky one this time? OK, use other people’s money.
Conventional investing and business rare make people rich unless they have large startup capital. If you earn 10% yearly profit on your $50k savings, it’s going to take a lot of time before you become rich. But if you can earn only 1% of 50 millions you will be rich right now.
There is a lot of free money chasing for good deals and waiting to be invested. Find a good investment, collect the money from investors and collect a small percentage of the profit as your fee. You can become rich next year.
What Does It Take
Unless you do it entirely informally you will need a license that is not easy to obtain.
Then you’ll need to find investments that are better than the investments offered everywhere.
Then you need to convince the investors that they need your mediation. Easier said than done.
They are everywhere – just look at the hedge funds, venture capital firms and angel funds. They collect money from investors, find deals and make profits. Even the mutual funds are entirely structured around the OPM idea. You may not win much by investing in funds, but they always win.
But can you or the average Joe use OPM for his benefits? Much harder, because starting a hedge or VC fund takes a lot of capital.
The simplest form of using OPM without being a hedge fund manager is to get loans from friends and run a business or collect your funds together to fund some project. Pooling funds together helps you achieve much better your goals and gives you access to resources that you can’t access using your money only.
Collecting OPM is as hard as it can get especially if you add all the legal troubles. If you choose just to pool money with friends without contract you may end up breaking relationships if the things don’t go as planned.
How To Start
You probably won’t start a hedge fund and maybe you will not want to collect money from friends without making it a legalized fund. So one eventually quick option is to search for OPM form loans or angel funding if you have a specific project in mind.