Are You An Sleeping Partner Or Have You Ever Concidered To Becoming one?

[TheLoFather]

A sleeping Partner also known as a 'Silent Partner' is an individual whose involvement in a business partnership is limited to providing capital to the business.
He or She invests in the business but does not have dealings in the day to day running of the enterprise.
A sleeping partner is rarely involved in the partnership's daily operations and does not generally participate in management meetings. Apart from providing capital, an sleeping partner can benefit the enterprise by giving guidance when solicited, providing business contacts to develop the business, and stepping in for mediation when a dispute arises between the other partners.

What I would like to know is what are your experience(s) of such investment? (whether personal or through people known to you who have engaged in such business investment )

[FarhanYare]

[TheLoFather]

^
Aaar bal kan muxuu ku qoslayaa?

[FarhanYare]

Lo'oda,
Was i laughing?

[MujahidAishah]

Sleeping partner = marriage

Bring the capital every month to the venture and then sit there and look pretty

[AbdiWahab252]

I have been a sleeping partner in multiple ventures. In 1992, I invested $4,000 in a small motel. I am still collecting $500 a month since that time. In 2010, I invested $9K, and cashed out with $81,000. My rules are simple: proven business partners, always keep it with my tol, invest with Sheiks, and always follow up once a year.

This time I am looking at setting up a small enterprise fund for my tol. I will loan gabdha iyo wiilasha $500 each and become silent partner in their small businesses. At the end of the year, I expect them to return the principal plus 10% profit to me. It is an investment to boost my tol's economic welfare and to prevent them from leeching off me.

I remember how my adeer funded my education with $1,500 to buy me a ticket to go to university abroad. Thanks to him I was able to leave Africa and become the man I am today. I paid him in kind when he needed a business partner to deal with foreign buyers. I helped him out and refused the commission because of his investment in me over 20 years ago.

If you can't finance your the younger enterprising youth of your tol and you have money, you are indeed a useless man.

[MujahidAishah]

I have been a sleeping partner in multiple ventures. In 1992, I invested $4,000 in a small motel. I am still collecting $500 a month since that time. In 2010, I invested $9K, and cashed out with $81,000. My rules are simple: proven business partners, always keep it with my tol, invest with Sheiks, and always follow up once a year.

This time I am looking at setting up a small enterprise fund for my tol. I will loan gabdha iyo wiilasha $500 each and become silent partner in their small businesses. At the end of the year, I expect them to return the principal plus 10% profit to me. It is an investment to boost my tol's economic welfare and to prevent them from leeching off me.

I remember how my adeer funded my education with $1,500 to buy me a ticket to go to university abroad. Thanks to him I was able to leave Africa and become the man I am today. I paid him in kind when he needed a business partner to deal with foreign buyers. I helped him out and refused the commission because of his investment in me over 20 years ago.

If you can't finance your the younger enterprising youth of your tol and you have money, you are indeed a useless man.

[TheLoFather]

I have been a sleeping partner in multiple ventures. In 1992, I invested $4,000 in a small motel. I am still collecting $500 a month since that time. In 2010, I invested $9K, and cashed out with $81,000. My rules are simple: proven business partners, always keep it with my tol, invest with Sheiks, and always follow up once a year.
This time I am looking at setting up a small enterprise fund for my tol. I will loan gabdha iyo wiilasha $500 each and become silent partner in their small businesses. At the end of the year, I expect them to return the principal plus 10% profit to me. It is an investment to boost my tol's economic welfare and to prevent them from leeching off me.

I remember how my adeer funded my education with $1,500 to buy me a ticket to go to university abroad. Thanks to him I was able to leave Africa and become the man I am today. I paid him in kind when he needed a business partner to deal with foreign buyers. I helped him out and refused the commission because of his investment in me over 20 years ago.

If you can't finance your the younger enterprising youth of your tol and you have money, you are indeed a useless man.

Inaar it's all good and well helping the tol but end of the day business is business and you might have heard of the saying "the business of business is business" therefore may I ask you how do you reconcile with trust issues for example a partner may act in dishonestly that he/she lie about the real profits and hence pay you less dividend or they might just say that the business made huge losses and are concidering to sell off assets to pay off debts unless you put in more money or they might all together sell off the business at huge gains but tell you they went bankrupt.
Since we talking about small businesses some partner may even forge documents to rip you of your investment.

I am not really a cynical person but I do think about the cons as well as the pro of any venture.

In your post sxb you only stated your positive experiences of beign sleeping partnet

I invested $4,000 in a small motel. I am still collecting $500 a month since that time. In 2010, I invested $9K, and cashed out with $81,00

but could you share with us any negative experiences, losses and bit falls that you may have come accross as a sleeping parner?

[TheLoFather]

Sleeping partner = marriage

Bring the capital every month to the venture and then sit there and look pretty

I only wish it was that easy.