Get Rich with Dividends: A Proven System for Earning Double-Digit Returns

Marc Lichtenfeld’s Authentic Italian Trattoria

Years ago, my wife and I were in Ashland, Oregon. We loved the town and started talking about escaping the rat race, moving to Ashland, and opening a pizza place. We’ve repeated that conversation on trips to Banff in the Canadian Rockies, Asheville, North Carolina, and even Tel Aviv, Israel.

Considering that I know nothing about how to run a restaurant, would be unhappy if not in close vicinity to a major American city, and am a lousy cook, the pizza joint remained a happy fantasy.

But for the purposes of this book, Marc Lichtenfeld’s Authentic Italian Trattoria will serve as an example of a business with revenue and profits. We’re also going to assume that I’m your brother-in-law (your sister was always a very good judge of character) and you’ve agreed to become my partner in the business.

One day I come to you, my favorite brother/sister-in-law, with my plans for the restaurant. I have the space lined up. It’s in a popular location with a lot of foot traffic. I’ve been talking with a wonderful young chef who is eager to make an impression on local diners and critics. All that’s missing is start-up capital.

This is where you come in. In exchange for a $100,000 investment, you will receive a 10% ownership stake. I show you my projections: The restaurant will break even the first year, make $100,000 in the second year and $200,000 in the third year.

One of the questions you may have is how you’ll get your money back. Do you have to ...