Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 10-23-2019, 06:03 PM   #61
Full time employment: Posting here.
 
Join Date: May 2013
Posts: 605
Quote:
Originally Posted by Farrell View Post
Hello-

I'm a new member to the site. I happened across Early Retirement.org the other day when a friend who frequently invests in my real estate company asked my opinion on a company that was guaranteeing 18% returns, an obvious red flag. As I searched the entity making the claims I came across a thread from this site where most all the contributors to the subject were right on point- as a return that high is unlikely sustainable and certainly can't be guaranteed. I am proud of the fact that I have over the last 25 years produced well above average returns that are collateralized by real estate in the economically sound central Iowa market. It was encouraging to come across a site where the members recognize the difference between realistic and unrealistic claims. Which leads me to the question-what besides pie in the sky returns coupled with implying a guarantee throws your radar up? I always scrutinize the core collateral and durability of an asset. Glad to be a member- thanks!
I'm pretty sure I've heard lots of radio commercials for the firm you're describing. They start with "If you're not earning 18 - 21%, you're losing!" I once did some research on that company. Apparently they renovate buildings on the east coast, and sell off units, and require their investors to put a small down payment (like $10k) and get a loan in the investor's name to buy the rest of the condo. And I believe the 18% "return" is the leveraged return on the $10k down payment. So if I put down $10k, take out a loan (for which I'm fully liable) for $300k, and earn $1,800 profit in a year, then I've earned my 18% return. Definitely not a risk I'd take.
__________________
Saved 8 figures by my mid-40's as a professional bubble-spotter. Beware...the Fed creates bubble after bubble after bubble.
RenoJay is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Recognizing the red flags
Old 10-25-2019, 08:37 AM   #62
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 7,431
Recognizing the red flags

Iíve heard those ads on Bloomberg Radio and wondered how they work. Credible but clearly exaggerated and may or may not reflect the level of risk involved.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
NPR: Annuities Explained - Choices & Red Flags SumDay FIRE and Money 0 03-20-2013 07:50 AM
Ameriprise:Financial Plannerís Red Flags omni550 FIRE and Money 2 10-15-2011 08:55 AM
Vanguard Not Recognizing my Computer TromboneAl Other topics 37 06-29-2009 03:01 PM
Citigroup Saw No Red Flags Even as It Made Bolder Bets chinaco FIRE and Money 14 11-24-2008 11:38 AM

» Quick Links

 
All times are GMT -6. The time now is 10:57 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2023, vBulletin Solutions, Inc.