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Opinions wanted: How much should I offer?
02-27-2017, 02:07 AM
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#1
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gone traveling
Join Date: Feb 2017
Posts: 3
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Opinions wanted: How much should I offer?
So I have known for a while a way to make a quite a bit of money and do it safely. No worries about a market crash. But since I have little cash to get started with I've been putting it off.
I thought about bank loans but I'm on disability so even though my credit is good my income is too low to qualify for any loan worth getting.
Then I figured I'd advertise in the paper for private loans. But what rate should I offer? If its too low no one will want to do it. If its too high people will just assume its a scam.
I'm asking the people who read this to reply with two numbers.
1) The first is the annual percentage at which you might be interested in making a private loan to someone?
2) What annual percentage is so high that you wouldn't bother with it because you would assume it is a scam?
Thanks!
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02-27-2017, 02:29 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Feb 2004
Location: Switzerland
Posts: 1,045
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I can see why you might worry about how your, um "offer" could be viewed as a scam. Is it a scam? It's walking and talking like one, from my point of view. I don't think members of this forum will be willing participants in your efforts to fine tune the scenario. You have misunderstood our purpose here.
Just my two cents.
-BB
__________________
FIREd, April 1, 2015. My Retirement Benefits Package includes: 6 months vacation, twice a year.
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02-27-2017, 02:42 AM
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#3
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gone traveling
Join Date: Feb 2017
Posts: 3
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Very immature.
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02-27-2017, 02:52 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Dec 2010
Location: Midwest
Posts: 1,787
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Quote:
Originally Posted by QuantGuy
Very immature.
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I think you misunderstand the response. I also thought your post "smelled funny". Too vague to be taken seriously. You already have two people who are very suspicious of your plan-is that not valuable feedback?
If you want honest answers, you will need to be more open with your idea.
That isn't immaturity, that's reasonable doubt.....
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02-27-2017, 03:53 AM
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#5
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Full time employment: Posting here.
Join Date: Mar 2008
Posts: 979
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Quote:
Originally Posted by QuantGuy
So I have known for a while a way to make a quite a bit of money and do it safely. No worries about a market crash. But since I have little cash to get started with I've been putting it off.
I thought about bank loans but I'm on disability so even though my credit is good my income is too low to qualify for any loan worth getting.
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If a bank won't loan you money what makes you think someone would want to loan you money? A person is going to have a much smaller purse than a bank and hold it a lot tighter.
__________________
I'm free and I like it!
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02-27-2017, 04:48 AM
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#6
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Full time employment: Posting here.
Join Date: Apr 2016
Location: warren
Posts: 935
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I personally wouldn't loan any individual money. I think you'd find it difficult to get people to pony up but I could be wrong.
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02-27-2017, 04:51 AM
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#7
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Recycles dryer sheets
Join Date: Oct 2012
Location: Minneapolis 'burbs
Posts: 382
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I would never loan money out to a total stranger, regardless of what rate they promised me. I think most people would be the same. If you're not trying to scam us, I'd be worried that someone is trying to scam you with a "risk-free" investment. Scammers often target vulnerable people, and people on disability are often perceived as vulnerable.
What do your friends and family say? Why haven't you approached them for the money?
And yes, those questions are largely rhetorical. I'm also "immature" .
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02-27-2017, 04:53 AM
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#8
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Recycles dryer sheets
Join Date: Oct 2015
Posts: 91
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Quote:
Originally Posted by QuantGuy
So I have known for a while a way to make a quite a bit of money and do it safely. No worries about a market crash. But since I have little cash to get started with I've been putting it off.
I thought about bank loans but I'm on disability so even though my credit is good my income is too low to qualify for any loan worth getting.
Then I figured I'd advertise in the paper for private loans. But what rate should I offer? If its too low no one will want to do it. If its too high people will just assume its a scam.
I'm asking the people who read this to reply with two numbers.
1) The first is the annual percentage at which you might be interested in making a private loan to someone?
2) What annual percentage is so high that you wouldn't bother with it because you would assume it is a scam?
Thanks!
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Google peer to peer lending.
Seems like someone with a handle like QuantGuy would be familiar with such things.
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02-27-2017, 05:45 AM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,863
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1. Not me, but I knew a guy who lends money to poor people who can't get a bank loan so that they can buy mobile homes. It was many years ago now, but when I asked him I believed he was charging 20% per year and still had trouble making money due to defaults and cost of recovery.
2. Maybe 35% annually. Consider reading through https://en.wikipedia.org/wiki/List_of_Ponzi_schemes.
Unsolicited advice #1: Talk to a local SCORE representative. They'll help you with your business idea as well as help you learn about financing options.
Unsolicited advice #2: Don't borrow money to start a business. Get a job and save money until you have enough to start in a small way, then use the business profits to expand. If you're only willing to risk others' money and not your own, that is a telling, and not too good, sign.
Good luck!
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
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02-27-2017, 05:56 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Michigan
Posts: 4,939
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You could try Prosper or Lending Tree, which are peer to peer lenders.
__________________
"The mountains are calling, and I must go." John Muir
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02-27-2017, 06:12 AM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2006
Location: Washington, DC
Posts: 11,313
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Sorry but this does sound like a scam. OP's third post ever cites a sure winner concept legitimized by the username "quant" but he needs to figure out a way to get a loan? Post it to several hundred ER wannabes and hope for a few PMs offering to get in on the game. Sounds like a Nigerian prince moving upscale.
__________________
Idleness is fatal only to the mediocre -- Albert Camus
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02-27-2017, 06:15 AM
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#12
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,155
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Quote:
Originally Posted by QuantGuy
I'm asking the people who read this to reply with two numbers.
1) The first is the annual percentage at which you might be interested in making a private loan to someone?
2) What annual percentage is so high that you wouldn't bother with it because you would assume it is a scam?
Thanks!
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1) 42
2) 1
You're welcome!
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02-27-2017, 06:23 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Feb 2004
Location: Switzerland
Posts: 1,045
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Quote:
Originally Posted by donheff
Sorry but this does sound like a scam. OP's third post ever cites a sure winner concept legitimized by the username "quant" but he needs to figure out a way to get a loan? Post it to several hundred ER wannabes and hope for a few PMs offering to get in on the game. Sounds like a Nigerian prince moving upscale.
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It was his first post I think; he has added two since then. The "can't lose" aspect only reinforces my concerns. My suspicion is that he wants to crowd source a range of interest rates that will serve as a sweet spot for the gullible.
If he is legit, then he needs far more than a lower and upper bound for his fantastic idea. If he wants to make a fair profit on his idea then he should have already determined the risk involved and a fair rate of return for that risk, or at least his own boundaries. This shot-in-the-dark approach is wrong on so many levels.
__________________
FIREd, April 1, 2015. My Retirement Benefits Package includes: 6 months vacation, twice a year.
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02-27-2017, 07:17 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Apr 2012
Location: Nashville
Posts: 2,504
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I know of a couple of businesses that were founded on facts such as this. Loans were not an option; the investor will insist on equity control.
One business in particular sounds similar to your scenario. It is now an extremely successful, quant driven, commodities trading firm that is open only to .01% type investors. (Had lower entry barriers in the beginning.) The deep pocket had no prior experience in this field, but had been a C level exec in a publicly traded firm.
No way would I ever loan money to someone with your story (but, to be fair, I also do not have deep enough pocket to finance the trading platform necessary!)
__________________
OMY * 3 2ish Done 7.28.17
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02-27-2017, 07:27 AM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Location: No fixed abode
Posts: 8,764
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How come the post count says 3, but when you go to look at his other posts it only shows the two in this thread?
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
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02-27-2017, 07:57 AM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,806
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There is not enough info for anyone to offer meaningful numbers.
But your post does sound odd, maybe just because you are choosing to be vague.
Quote:
If its too high people will just assume its a scam.
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Wouldn't the explanation and business plan be enough to let them realize it isn't a scam? If not, then maybe it is a scam?
-ERD50
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02-27-2017, 07:59 AM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 9,940
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Advertise "in the paper" are you talking classified ads...that's so 1970...
it's foolproof, but you haven't actually done it yet?
You are a little early for April's Fool Day....
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02-27-2017, 08:07 AM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: Independence
Posts: 7,271
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We make hard money loans. We've lost chunks of our money by not having security. Lending to a stranger with a foolproof plan to make lots of money who has no money? No thank you.
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02-27-2017, 08:27 AM
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#19
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Thinks s/he gets paid by the post
Join Date: Jun 2007
Posts: 2,657
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Lending money on an idea with no security is not likely to happen. Finding an investor who believes in your business concept might be possible, but they will take a large stake. Offering your mystery money making plan as a hedge fund is another alternative, but it's going to take a lot of talking to find a willing deep pocket investor.
If this really is such a sure thing, it would seem like an obvious choice to save up some of your own money and simply do it yourself. Why is that not an option?
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02-27-2017, 08:34 AM
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#20
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,518
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Quote:
Originally Posted by harley
How come the post count says 3, but when you go to look at his other posts it only shows the two in this thread?
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If a member were to report a post using the post report button it would create a post that can only be seen by the moderators. I'm not saying this is the case in your specific question, just providing a generic response.
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