Opinions wanted: How much should I offer?

[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!

 

[Bryan Barnfellow]

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

 

[QuantGuy]

Very immature.

 

[brucethebroker]

Very immature.

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.....

 

[RetiredGypsy]

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.

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.

 

[garyt]

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.

 

[Maenad]

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" .

 

[Geld ist Freiheit]

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!

Google peer to peer lending.
Seems like someone with a handle like QuantGuy would be familiar with such things.

 

[SecondCor521]

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!

 

[DrRoy]

You could try Prosper or Lending Tree, which are peer to peer lenders.

 

[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.

 

[braumeister]

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!

1) 42

2) 1

You're welcome!

 

[Bryan Barnfellow]

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.

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.

 

[2017ish]

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!)

 

[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?

 

[ERD50]

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.

If its too high people will just assume its a scam.

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

 

[ivinsfan]

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....

 

[calmloki]

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.

 

[growing_older]

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?

 

[MichaelB]

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?

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.

 

[Whisper66]

The first is the annual percentage at which you might be interested in making a private loan to someone?

I assume by "someone" you mean a person I know nothing about, offers no real information on what they plan to use the money for, and comes across as nothing but a scammer? Gee, I'd have to really think about that one....... I'll get back with you.

 

[Texas Proud]

I guess I missed his 3rd post... or it has been deleted...


But, there are NO sure investments... zero, nada, none... so your first post comes off as being untruthful....


As others have pointed out, there are many ways to borrow money even at high interest rates without getting the money from one person... but no mention of you trying that route...

No mention of what kind of investing your are planning... you do not need to say exactly what it is, but you can be pretty generic and get your point across.... but nothing.... just a sure bet...


And lastly.... if this was not a scam, then you should have been able to calculate what interest that you could afford... IOW, if your sure money winner was able to grow 30%, then there is no way you can offer 30% or above interest since you would be left with nothing...

 

[joeea]

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.

You should talk to your family about providing an angel investment to help you with your "method".

Since it's completely safe and only needs some cash input, I'm sure they would be on board.

That way you could provide a real explanation without sounding so "scammy" and come to a reasonable agreement on interest for the loan.

(BTW, how much cash does it take to start your venture? How long before you would see these safe returns?)

 

[Bryan Barnfellow]

Has something gone astray with this thread? As per usual with threads in which I am a participant, I received via email a notice that the OP replied and was provided the text of that reply and a link to it. It was quite angry. But the link takes me to the last post, which is not from the OP. Did he delete his most recent reply? Can Mods help here?

I want to address his response with some suggestions on how to approach this group. I don't want to copy and paste his reply if he in fact deleted it himself after reflection. Thanks.

-BB

 

[ERD50]

Has something gone astray with this thread? As per usual with threads in which I am a participant, I received via email a notice that the OP replied and was provided the text of that reply and a link to it. It was quite angry. But the link takes me to the last post, which is not from the OP. Did he delete his most recent reply? Can Mods help here?

I want to address his response with some suggestions on how to approach this group. I don't want to copy and paste his reply if he in fact deleted it himself after reflection. Thanks.

-BB

I think that post got deleted, and the poster has been banned. The (not so) secret code is to look at the OP's handle now:

QuantGuy
gone traveling
​

-ERD50