I met a few friends who is involve in property for a number of years.
He approach me introduce me to a person in Essendon, Victoria who does short term lending to property developers etc.
in summary, he is charging borrowers 3% + per month for min 3 months and passing on 2% to the investor.
Any people has experience with this kind of opportunity / risk / scheme ?
Extremely risky.
You essentially will have no recourse when things go wrong. One of my friends has just lost $120,000 by going into one of these schemes.
You will probably find that the figures provided are biased. Property values are not as high as they say. You will have no security. They may offer a caveat over the property, but this is useless. If they offer 2nd mortgage you may find if they go down then there will be nothing left after the first mortgage takes their share.
They may also offer a personal guarantee like my friend got. But you may find that they do not actually own any property personally or an any assets. If they do have assets, then these will probably be highly geared already – otherwise they wouldn't need your money.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
thanks Terry
could I know which person offered the deal to your friend. i want to make sure its also not the same people.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
