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Harbor City Capital and its claimed 18% ROI.....
Old 07-11-2019, 08:56 PM   #1
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Harbor City Capital and its claimed 18% ROI.....

This seems to fall squarely in the “if it sounds too good to be true it probably is” bucket. And it doesn’t seem to me they precisely explain the online lead valuation spread they are leveraging to create the returns for investors. See the “how it works” section. Just wondering if anybody knows anything about this. Here is the site: https://harborcitycapital.com/investments/hccf-2-bond/
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Old 07-11-2019, 09:19 PM   #2
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One of the benefits of experience is that I have learned to not waste time on deals that sound too good to be true.
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Old 07-11-2019, 09:56 PM   #3
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As far as bromides go, hard to argue with “too good to be true”. Mentioned it myself above. That said, you have 3066 posts on this site in a little over two years. And you’re presumably retired. Maybe you have more time than you realize?
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Old 07-11-2019, 10:04 PM   #4
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short term finance ( if that is truly what they do ) is risky

so even if tempted i would certainly be only investing comparatively small amounts

but looks 'too good to be true ' ( as well as increased risk ) juicy loans like this don't happen every week , and some will go bad )
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Old 07-12-2019, 08:56 AM   #5
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Originally Posted by Bluegrass View Post
As far as bromides go, hard to argue with “too good to be true”. Mentioned it myself above. That said, you have 3066 posts on this site in a little over two years. And you’re presumably retired. Maybe you have more time than you realize?
Since you're clearly annoyed, let me explain a little bit more.

Every once in a while someone puts up a post something like yours. In many cases the OP either has not or is not able to evaluate the deal for themselves. Basically, they are hoping someone on the forum will do the work and then tell them that it is a wonderful deal, pathway to nirvana, etc.

They never are. Here is the simple reason why: Any wonderful deal that actually exists would be snapped up by professional fund managers and the promoter would not have to go through the grief and tedium of pitching it to retail investors. So the simple fact that you (and I) have access to it is pretty solid proof that it stinks somehow. How? Who cares?

Re time, I do have time for doing productive things. For example, I will probably deploy to Louisiana with Red Cross for a couple of weeks in the aftermath of Hurricane Barry. I do not, however, have time to dig holes and then fill them in. Nor do I have time to figure out exactly why stinky deals stink. It could be a very interesting hobby for someone, but not for me.
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Old 07-12-2019, 09:14 AM   #6
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Intrigued by this discussion I took a peek. I'm no expert in this stuff, but two bullet points stood out

This is a contradiction in terms

Quote:
Safe, passive investment with 1.5% monthly income
This is an invitation to turn around and head for the exit. The borrowers must be paying well above 20% for these loans, and accounts receivables are low quality assets with questionable valuations.

Quote:
provides funding for digital media campaigns, secured by real assets, including accounts receivables and purchase orders.
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Old 07-12-2019, 09:20 AM   #7
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Well, since I purchased the Brooklyn Bridge , it only seems right that I should buy internet advertising bridge loans.
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Old 07-12-2019, 09:26 AM   #8
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Disclaimer on the web site:
"Harbor City Capital makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contain on this website or any sites linked to or from this site."
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Old 07-12-2019, 05:01 PM   #9
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Where have I seen disclaimers like that before? Oh, yeah, but .... locked.
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Old 07-12-2019, 10:07 PM   #10
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Old shooter old sport,

This outfit has been doing some version of this since 2014. I surmise some folks out there in investment land have actually invested. Did the investment perform as described? Was principal returned as promised? That’s what I was going for with my “know anything about this?” inquiry.
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Old 07-13-2019, 12:36 AM   #11
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now it sounds to be too good to be true ' ( regularly and long term and in bulk )

that doesn't automatically say it is a fraud BUT it does hint you should reseaegch VERY carefully and NOT put every investing dollar in it , the market has cycles 2007/2008 was a big downturn and it has been doing pretty good since but in recent decades NASTY bumps have been occuring every 7 to 9 years

you can look great for several years and then the ground falls out underneath you ( even the biggest US banks took a bailout in 2007/2008 )
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Old 07-13-2019, 05:28 AM   #12
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FWIW, I searched the vast Internet library last night, and came away with little understanding, but much speculation (mine).

"Harbor City Capital" is relatively new, and there are links which seem to predominantly go to the company itself, or "articles" about the company and its founder JP Maroney. What I surmise is that the author is working the internet (an author on HuffPost?), and knows how to feed articles to sites, increasing his hits, and so forth. He does have a paid google ad, and that helps push other results further down the page. Nothing illegal about any of that.

But what of his investing arm, "Harbor City Capital"?? Combine the name with scam or ripoff or complaints, and you can find a little about what makes the company tick. Complaints seem to include $25,000 and waiting for a client's check before returning the investor's money after a complaint.

I am amazed at how a company can still get their positive search hits as well as an ad or two on the first page when you search for complaint and ripoff.

Lastly, I am too suspicious. Why would someone post about an obscure investment, when clearly there is no one at E-R jumping up to speak about this great investment? It makes one wonder.
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Old 07-13-2019, 06:20 AM   #13
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I'm a very conservative "investor" - as in, only index funds and only in stuff I understand - so in my case I wouldn't touch this with the proverbial 10 foot pole. I don't see why anyone would touch this, except perhaps as a hobby knowing what the risk is. This is an interesting thread so I'll follow along.
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Old 07-13-2019, 07:16 AM   #14
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Uh Oh.....


I hear the theme song from "American Greed" playing already....
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Old 07-13-2019, 07:21 AM   #15
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There is so much BS in the first 3 paragraphs of the OP's link that I had to stop to put on hip-waders before proceeding further.

Quote:
The funding is provided as a line of credit that is guaranteed by a UCC-1 filed lien against accounts receivables and purchase orders as collateral. This mitigates our risk of capital loss by providing us a secure position with guaranteed repayment, and allows us to safely earn 2-3% every 30 days for providing the campaign funding.
Google UCC-1, its not a lien any more than running a public notice in the newspaper stating you may or may not have a claim.

ETA: The math doesn't make sense... they are issuing $1M in bonds, with a minimum investment of 50K, so this is supposedly only open to the first 20 "investors".
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Old 07-13-2019, 09:00 AM   #16
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Originally Posted by Bluegrass View Post
That said, you have 3066 posts on this site in a little over two years. And you’re presumably retired. Maybe you have more time than you realize?
Time is a person's most precious resource. It should never be intentionally wasted. Sure, we sometimes end up doing some things that waste our time - we try to fix something that needs a pro, we take a short-cut that turns into a long delay, or we spend to much time reading online forums rather than cultivating personal friendships (). But, most of us do that stuff through ignorance or accident. Rarely, do we intentionally do something that wastes our time no matter how much time we have. If I have nothing better to do I will read a book, take a nap or get a bit more exercise. All have value.
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Old 07-13-2019, 10:06 AM   #17
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As far as bromides go, hard to argue with “too good to be true”. Mentioned it myself above. That said, you have 3066 posts on this site in a little over two years. And you’re presumably retired. Maybe you have more time than you realize?
This was directed at OldShooter, but I'll back up and add to his comments.

Looking into the info in a post like this is like looking into the claims of "Perpetual Motion" machines, or "Free Energy".

We know how they end, they all end the same, the only reason to look is for entertainment value, to see if there is a new wrinkle in the old scam.

-ERD50
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Old 07-13-2019, 03:57 PM   #18
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If an investment returns 18%/yr and is totally safe, why wouldn't the company just borrow millions at 5% and make themselves 13% a year without having to get you into the game?


Most likely because it's dangerous as hell and they don't really make anything like those kinds of return.
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Old 07-13-2019, 04:04 PM   #19
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The tipoff is "accredited investors only"
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Old 07-14-2019, 04:49 AM   #20
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The tipoff is "accredited investors only"


There are lots of legit investments available to “accredited investors only”. But there is also a lot of crap like the one that started this thread.

It takes a large amount of due diligence and time to wade thru it and find the decent deals. Most of them are commercial real estate syndications.
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