discuss My first $1,000,000 offer to purchase

[MapleDots]

I am about to make my first One Million dollar offer to purchase and I want this to go a smooth as possible.

I have asked the advice of a couple of my peers on how to best proceed with this but I thought I would also put it out to some of the members on namepros.

My usual way of doing business when I go after a domain is to attach a time frame to the offer to purchase, but to be quite honest this one is kind of in a league of its own and I have to be careful how to pursue this.

My plan is to offer 500k down and 500k when the deal closes.


What do you guys think?


1. Make an offer with no strings attached

or

2. Set a time limit to add an urgency to the sale

 

[wwwweb]

It is simple, get a letter on bank stationary signed by an officer saying you have 1 million on deposit on that date. Another option is to open a new money market account with a balance of exactly 1 million $.

For someone as experienced as you and with so much money and assets It's surprising you did not do that.

Agreed it is a common document, especially in real estate.

 

[MapleDots]

Agreed it is a common document, especially in real estate.

I deal with a virtual bank and getting anything out of the norm is like pulling teeth.
A screen shot was the simplest solution for me to show I had the funds.

All mute now anyways because its radio silence at this point.

This was a learning experience for me and I have a possible broker lined up to do my heavy lifting in the future.
It's worth paying someone to dot all the i's and cross the T's.

 

[namemarket]

I deal with a virtual bank and getting anything out of the norm is like pulling teeth. A screen shot was the simplest solution for me to show I had the funds.

The online banks make it extremely easy to open a new account and transferring funds via other accounts. I believe it takes no more than a day to open a new account and fund it online at the banks I have seen advertising.

 

[MapleDots]

The online banks make it extremely easy to open a new account and transferring funds via other accounts. I believe it takes no more than a day to open a new account and fund it online at the banks I have seen advertising.

No thanks to that

Moving that amount of money around draws attention and increases your odds for an audit. I have nothing to hide but having gone through audits they are not a pleasant experience.

 

[namemarket]

That's a very good point..

 

[toughdomains]

I remember a story about one of the titans who was buying a llll.com I think the price started around 250k and after 8 years of wearing him down he settled on 65k....the party least interested is always in control..

 

[Kingslayer]

I remember a story about one of the titans who was buying a llll.com I think the price started around 250k and after 8 years of wearing him down he settled on 65k....the party least interested is always in control..

The person who was chasing it for 8 years wasn't in control at all, all i got from that story is previous owner couldn't sell so lowered his original asking price and still got a fantastic price.

8 years is hell of a long time.

 

[toughdomains]

The person who was chasing it for 8 years wasn't in control at all, all i got from that story is previous owner couldn't sell so lowered his original asking price and still got a fantastic price.

8 years is hell of a long time.

the point I was trying to make was if you have the patience and can develop a relationship with the seller and the seller isnt totally unrealistic the patience may work to your advantage. it did there...however if its a really great name you could lose it..large domain sales are usually complicated.

 

[larryscott2559]

I am about to make my first One Million dollar offer to purchase and I want this to go a smooth as possible.




I have asked the advice of a couple of my peers on how to best proceed with this but I thought I would also put it out to some of the members on namepros.

My usual way of doing business when I go after a domain is to attach a time frame to the offer to purchase, but to be quite honest this one is kind of in a league of its own and I have to be careful how to pursue this.

My plan is to offer 500k down and 500k when the deal closes.


What do you guys think?


1. Make an offer with no strings attached

or

2. Set a time limit to add an urgency to the sale

I would not mention a million dollar sale until after the deal officially closes. People will promise you the world but until you have a hand written contract or equivalent...its just empty words and anyone or anything can ruin the sale.

 

[BrandCougar]

@MapleDots -

It's a great question - but to provide a respectable recommendation would need to better understand several dynamics of the transaction.

For example...

1) How did you hear of the domain? Meaning, was it listed on a site with a "Make an Offer" button? Or, did you find the domain via research and are making a "blind" offer? What I'm really asking here is how did the name come to your attention?

2) Is there an active website associated with this domain? Or is this a stand-alone domain? And if a stand-alone domain, how long has it been out of circulation? Or has there ever been an active website? What I'm trying to assess is - what has been the history of the domain?

3) Do you have any insight to how long the current owner has held the domain? Is the owner an operating business, a recently declining business, or is it owned by a fellow domainer?

4) Are you funding the purchase with cash or equity?

5) Has your communication only been via email, only been via phone, or a blend of the two? And how long has it been since your original contact?

6) For that matter, have you done business with individual/entity previously? Meaning, do you have an ongoing relationship with the (potential) seller and have purchased items from them in the past?

7) Are you dealing with a DM (Decision Maker), a "wanna-be" lower level manager, or legal?

8) Do you already have a potential buyer lined up for a near-term sale? Or are you looking to sit on this domain with a "Hold" position approach?

The reason for all the questions - is the dynamic of your introduction to the opportunity and (if) any prior relationship with the other party will have a HUGE impact on your approach.

The biggest issue in a large transaction is the dynamic of the dialogue.

-Cougar

ps: How can you make a vote decision without all the details (relationship dynamics and ongoing dialogue)

 

[MapleDots]

@MapleDots -

It's a great question - but to provide a respectable recommendation would need to better understand several dynamics of the transaction.

For example...

1) How did you hear of the domain? Meaning, was it listed on a site with a "Make an Offer" button? Or, did you find the domain via research and are making a "blind" offer? What I'm really asking here is how did the name come to your attention?

2) Is there an active website associated with this domain? Or is this a stand-alone domain? And if a stand-alone domain, how long has it been out of circulation? Or has there ever been an active website? What I'm trying to assess is - what has been the history of the domain?

3) Do you have any insight to how long the current owner has held the domain? Is the owner an operating business, a recently declining business, or is it owned by a fellow domainer?

4) Are you funding the purchase with cash or equity?

5) Has your communication only been via email, only been via phone, or a blend of the two? And how long has it been since your original contact?

6) For that matter, have you done business with individual/entity previously? Meaning, do you have an ongoing relationship with the (potential) seller and have purchased items from them in the past?

7) Are you dealing with a DM (Decision Maker), a "wanna-be" lower level manager, or legal?

8) Do you already have a potential buyer lined up for a near-term sale? Or are you looking to sit on this domain with a "Hold" position approach?

The reason for all the questions - is the dynamic of your introduction to the opportunity and (if) any prior relationship with the other party will have a HUGE impact on your approach.

The biggest issue in a large transaction is the dynamic of the dialogue.

-Cougar

The domains I am pursuing will all be either officially for sale or will have owners that have expressed interest in selling. I am currently bidding on a different domain but have hired a broker to negotiate for me. Upon the advice of my broker I am instructed not to communicate further until a purchase has completed in which case I will probably be listed on namebio.

My goal for 2019 is to try and purchase 1-2 high profile .com properties and about a dozen or so one word .ca's. My broker is confident that I can get multiple high profile .com's for the price I was offering on this single domain.

 

[BrandCougar]

@MapleDots -

Since you are using a broker, I recommend having a time limit attached to your brokerage purchasing (relationship) agreement. All real estate listings and respectable purchase agreements have time limits on them. Otherwise, it is an offer in perpetuity (a foolish approach).

Dynamics in markets and in brokerage relationships evolve over time, hence the reason for a "duration" clause in your relationship agreement.

ALL brokers want "in perpetuity", but quality brokers will broach the topic up front with you when you initiate your intent to develop a relationship with them (aka - use their service).

You mentioned your target items are "officially for sale" or "will have owners that have expressed interest in selling".

In that situation/dynamic, then any offer you (or your broker) presents to them should definitely have a time limit (expiration period) as part of the presented offer.

I personally prefer handling negotiations that arrive at verbal (mutual) agreement that THEN are followed up with a written agreement as a formality. Lawyers and brokers should be documenting agreement, not tossing out paper volleys (paper hand-jobs that only lead to extensive waiting time periods).

You should be at the table (not to talk) but to observe and GAUGE INTENT of the seller.

Being the one actively haggling puts you in a blind spot (as using your voice provides inflection to your intent), but being a silent observer provides you a non-emotional way to gauge seller intent.

BTW - On a $million transaction, I agree you should not be winging it on your own. And having council (a broker or an attorney) at the table chatting away is okay, but for Pete's sake... it's your money!! And if you don't have the skills to gauge (weigh) seller intent or behavior, then it's also likely you will be clueless gauging BUYER INTENT on the back end when you go to sell your new $1M trophy. Therefore, think very clearly about your skills set before hiring a bunch of "pros" (consultants who make a living off other people) to handle your investing.

Your goals for 2019 are clear and articulate - the 1st step to success - my only recommendation is when it comes to spending your money on high ticket items - have a direct line of sight on the sellers view & behavior during the negotiations. A broker (or lawyer) rarely risk their own money during these transactions and CERTAINLY ensure their risk is mitigated (while their gain is always additional cash flow).

A $1M deal is not an email volley, it should be a professional face-to-face transaction.

-Cougar

ps: Best of luck with your business. It looks like 2019 will be an exciting time for you.

 

[poweredbyme]

I would set a time limit. But I wouldn't put $1m to a single domain unless my net worth is $100m.

 

[oldtimer]

One last word:

Whatever domain name that you buy make sure that you can put it to some good use and recoup your money quickly. Things can change fast when AI based smart assistants start using the internet on behalf of humans. Domain names were created because humans could not remember IP addresses but smart assistants are not going to have that problem. IMO

 

[tonecas]

My humble suggestion: do yourself a favor and pass that on. $1M for a domain is absolutely crazy and in the realm of end-users, not domainers.

unless the domain you want is toptop.... .top that everyone knows is the most expensive domain in the world.

 

[xynames]

If you’re serious about buying a domain here’s one where your $5k bid could actually win it
https://www.namepros.com/threads/keepcalm-com-keep-calm-and-474-000-000-results.1119685/
versus your $1m bid here which seems evident would never have closed.

 

[xynames]

Then again, lol, maybe not. KeepCalm Seller is all over the place. Closed the auction and now opened a “Make Offer” thread and an “appraisal request” thread.

 

[Sanwal]

BTW - On a $million transaction, I agree you should not be winging it on your own. And having council (a broker or an attorney) at the table chatting away is okay, but for Pete's sake... it's your money!! And if you don't have the skills to gauge (weigh) seller intent or behavior, then it's also likely you will be clueless gauging BUYER INTENT on the back end when you go to sell your new $1M trophy. Therefore, think very clearly about your skills set before hiring a bunch of "pros" (consultants who make a living off other people) to handle your investing.

I second that, was surprised not many people advised that (Though haven't looked at all the pages)

If you have a mil to spend, i'm sure this is the first thing you should've done, hire a lawyer. It's a big no no if it's just you and your broker on their own, unless they're a lawyer too.

 

[bbboy5]

For $1mln better to buy Bugatti Veyron and crash it at 300 km/h and get your dose of adrenaline.