Short YouTube clip (March 7, 2023) featuring Mike Andes and an unidentified speaker explaining how a buyer can capture $2M of immediate equity by purchasing a $10M asset for $8M and reselling it — the speaker emphasizes that the buyer must add value (capital, speed, or connections) to enable the arbitrage-like transaction.
Easy way to make a million dollars is buy something that's $10 million, buy it for 8, and you sell it to somebody else for 10.
I know it sounds like fugazi magic if you suddenly create $2 million. But the bottom line is you have to add value to the transaction. You have to usually add things like capital or connections. And so in order to get that $2 million, you might have the capital to go buy the $8 million in cash, close very quickly on a house, and then sell it to someone who can go get debt at 10 million. Or you have connections in place to be able to get the better deal.
