Hi
I have an idea to lend money off retired people,ie go to a retirement home and put forward a proposal to lend money of them for a reasonable return.
My Mother in law lives in one and most of them have there money in the bank on 3-4% interest.
I was thinking of offering the same as bank finance,about 6.5%
What woudl be my pitfalls and has anyone else attempted this.
boobooHi Booboo,
I would be taking great pains to ensure the ‘retired folk’s’ money is secured.
I am sure this is not the case but I could imagine the headlines ‘Shyster Booboo Strikes Again – Rips Off Old Folk Again’ if things went awry.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping.
Also, if advertising for investment monies, you need a Product Disclosure Statement – amongst other possible requirements (like a Financial Services License, etc….)
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auComments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Can you just clarify …..are you looking to “lend to” or “borrow from” these retired people??
He is looking to “borrow from” Nat.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auComments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Thanks ….maybe that is something that should be clarified for the broader audience in his PDS or Prospectus. I’m also guess that he would need to add something on how the money will be used.
Hi Again
I would be looking to have first morgages with fixed interest only terms.
I think this would help me as I would not be paying all the costs that banks like to sneak in to the loans I have now.Even though the interest rate I have now seems good, i get hit with high fees on a regular basis.
I would be doing everthing above board and belives it would help both parties.
boobooWhy don’t you just take a loan with no fees?
It would be cheaper than setting up a business with a financial services license and preparing a product disclosure statement for your offering.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
You must be logged in to reply to this topic. If you don't have an account, you can register here.
