All Topics / General Property / Property development fund

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  • Profile photo of zenzen
    Participant
    @zen007
    Join Date: 2016
    Post Count: 46
    September 9, 2017 - 3:12 pm

    Hi Team PI

    Do any of you know the pros and cons of investing minimum $10k into a property development fund that has no management fees, no entry and exit fees? Theres a monthly ROI which we can reinvest.

    I’m contemplating to invest in one.

    Thank you for your answers in advance, appreciated.

    zen

    • This topic was modified 7 years, 2 months ago by Profile photo of zen zen.
    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    September 9, 2017 - 4:38 pm

    Whats your security?
    How do you get your money out again?

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416
    September 10, 2017 - 11:10 am

    Hi Zen,
    I figure you might have already Googled the fund itself to read reviews etc. If not, that would be worth doing.

    Theres a monthly ROI which we can reinvest.

    Just what is that ROI%? And is it a monthly return % or a yearly % but paid monthly?

    I have heard some funds paying 5% returns monthly – but they are typically Ponzi schemes that one would be well advised to steer clear of.

    So what about your one? Does its return “sound too good to be true?” or is it in the realms of reality?

    Benny

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    September 14, 2017 - 1:43 pm

    Agree with Benny a lot of the Development Fund schemes have proved to be Ponzi schemes.

    Then you have the associated risks with any development.

    We run an ASIC approved Mortgage Trust which offers investors a monthly income based on their investment term but don’t lend to Property Developers.

    Have to say we don’t pay anywhere near 5% / month which clearly is unsustainable.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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