Snake 'Investment'

[NotoriouS]

Hi guys,

I've got a friend who recently asked me this question, I didn't know so I thought I would ask you guys here. He was wondering if there would be a 'market' where he could make an investment in the reptile business. As in, his exact idea was to provide the money for all the equipment, snakes, etc required to successfully breed a high class of snakes (e.g. GTP's), and provide this to a person with the knowledge to breed them and what not. The person breeding would in turn require no extra costs for the breeding/feeding/upkeep as all will be provided to them. All they have to do is get the animals to breed, and when they have offspring, the breeder gets to keep a certain 'cut' when the offspring are sold.

Would this be possible at all?

 

[Miss B]

I reckon he'd have no trouble finding people quite happy to be involved in that.

 

[spilota_variegata]

There's a lot at stake. He might invest a lot and lose it all. Having said that, I put up my hand to take care of the snakes

 

[Colin]

Hi guys,

I've got a friend who recently asked me this question, I didn't know so I thought I would ask you guys here. He was wondering if there would be a 'market' where he could make an investment in the reptile business. As in, his exact idea was to provide the money for all the equipment, snakes, etc required to successfully breed a high class of snakes (e.g. GTP's), and provide this to a person with the knowledge to breed them and what not. The person breeding would in turn require no extra costs for the breeding/feeding/upkeep as all will be provided to them. All they have to do is get the animals to breed, and when they have offspring, the breeder gets to keep a certain 'cut' when the offspring are sold.

Would this be possible at all?

I'd suggest if you have excess funds available for investment (and no reptile knowledge) dont try to invest in reptiles, but our financial planning advisors at work (we have about 15 of them) would be more than happy to invest it in a less riskier situation (at a small commission and ongoing trail of course) :lol:

theres no real short cuts to life, and although you 'may' find a decent bloke that knows what he's doing, most I imagine would not be keen to take someone thaey dont know under their wing and into their home and collection for a few bucks Kinda like prostituting yourself to the highest bidder and not for me I"m afraid. If it was someone I knew or a friend then maybe I" think about it, but someone I don' know... no way in hell. And if it didn't know them and they didn't know anything much about herps that would make me more inclined NOT to do it as well.

Learning how to do stuff with reptiles is half the fun, the other half is enjoying them and keeping them. Money is just an extra that happens when you breed your animals and is used mainly to fund other animals, pay for feed and expenses etc and not really meant for anything other than more reptiles

buy some BHP Limited shares (Black Headed Python)
Just my opinion though

 

[cris]

It could get real nasty if the snake is stolen, dies, gets OPMV or whatever, you really would want to trust them too.

 

[NotoriouS]

Yea just spoke to my mate again, let me re-phrase what he is suggesting.
This is the case: Investors provide capital (complete funding for snakes, etc), those funds are then used by the breeder to breed the reptiles, sell them, and make a profit. The profit is the breeder's, and the investors get a cut from the breeder's profit. The 'business' will be the breeder's and will be run by the breeder. The capital for it will be provided by the investors. I think that makes it more clear.

Btw Colin, I completely agree with you on the on how learning about reptiles is half the fun.I bought my first snake (spotted python) 2 days ago and I am so amazed by it!

 

[Colin]

Yea just spoke to my mate again, let me re-phrase what he is suggesting.
This is the case: Investors provide capital (complete funding for snakes, etc), those funds are then used by the breeder to breed the reptiles, sell them, and make a profit. The profit is the breeder's, and the investors get a cut from the breeder's profit. The 'business' will be the breeder's and will be run by the breeder. The capital for it will be provided by the investors. I think that makes it more clear.

Btw Colin, I completely agree with you on the on how learning about reptiles is half the fun.I bought my first snake (spotted python) 2 days ago and I am so amazed by it!

yes awesome creatures aren'y they? Doesn't take long to get addicted..

I understand what your saying but as I said before, compared to the risk involved etc its probably not the best idea for investment. If you like a little bit of risk I'm sure you can get 20% (easily) return and even 30% on your money for more risker investments. (at PSK Financial Services) we currently manage for clients in excess of $600 million through a wide range of investments and administration platforms. Were with Charter Finance and Charter forms part of one of the world's leading financial service organisations - the global AXA Group. The AXA Group has a presence in more than 60 countries and have group assets of around AUD$1,295 billion.

 

[mrmikk]

It is like any investment, high return = high risk. My question is why does he/she want to invest in this type of project? I assume he/she has heard of the prices of GTPs and albinos and sees $$$$ there. If he/she has the $$$$$s to invest well do a business plan and see how the numbers turn out, like you would with any investment.

 

[shamous1]

I'll volunteer

Tell him to PM me. I've got the mjority of the equipment needed. If he wants to try with any species I'm ready.

My mum's husband was going to invest quite a bit of money in my herps but the ******* had to have a dodgy nursing home did'nt he:evil:

 

[NotoriouS]

Hey Shamous1, the guy's not actually on APS yet, but if you could provide me with an email address or something that I can pass on to him that would be great. Just PM me and i'll pass it on.

 

[Retic]

This sort of thing has been going on for years and is a fairly risk free investment. Like any investment there are no guarantees but if he chooses a breeder with plenty of experience there should be few problems.

 

[reptyle]

me old man has offered to supply funds to aquire a few pythons. i jumped at the idea, lol. they will be owned by me, ill look after them and everything like that. he wont have anything to do with them except will recieve a certain percentage of the profits when they breed. its mainly a win for me but he'll still gets something out of it, haha.
it sorta helps though that he knows he can trust me. i dont know how keen i would be doing it with someone i wasnt familiar with.
just my 2 cents though.
cheers, ian

 

[NotoriouS]

Thanks guys! Yea i think the issue would be trust, and finding a genuine breeder who knows what he's doing. Interesting prospect though..

 

[pugsly]

As Boa said, been happening fore a while mate.

Key is to as you say trust. But it is certainly possible and does work.

 

[shamous1]

another key

One big thing to remember is that with any investment venture things can fail, in this case it may mean the animals did not breed one year, animal had to recieve Vet treatment or even an animal passing away. Not to mention theft - escape etc

 

[PhilK]

I reckon if you bred lots of animals that went for high prices (RSPs, GTPs, albinos etc) you could easily make a killing every year.

 

[cement]

This is a very possible scenario, just work through all the pro's and con's. Like the man said it has and does happen. Plus as far as investments go its not a huge outlay, if you have the premises.
I would do it.

 

[NotoriouS]

Hey guys,

Thanks to everyone who replied to this thread and for the PM's. I'm compiling a list of all the potential breeders who have been interested, and my mate will be contacting them as soon as he's done with his research. If you guys are interested but have not provided me contact details yet, could you please PM me your mobile no. (preferred) otherwise an email address should be fine as well. Currently he is just looking for people in NSW, however if there is potential for expansion others will be considered. So yea, please get your contact details to me and I'll pass them on.

Regards,

 

[spilota_variegata]

Good luck with your venture Oshakoor.... I hope everything works out for you. One thing to think about, the value of your investment is directly proportional to the stress caused by possible failure. If one of my carpets die, I feel great loss emotionally, if one of my more expensive snakes die, I fee emotional and financial loss

Research, research, research - I can't say this enough. Ask a lot of questions about the breeder/breeders you choose and remember, a lot of people can talk the talk but few can walk the walk. Don't be afraid to ask for feedback on potential breeders, it might just save you (or your investor) a lot of money.

 

[NotoriouS]

Thanks Spilota I really appreciate your advice, will definitely let my mate know. I'm just the middle man, I love reptiles but i'm not really the investing type. I'm happy with my one snake for the time being , well not really tried handling it for the first time last night and it bit the crap out of me . But yea, thanks once again!