A friend offer me a investment opportunity at 15% annually, is it too good to be true ? (lemmy.world)

submitted 1 year ago* (last edited 1 year ago) by hahattpro@lemmy.world to c/asklemmy@lemmy.world

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He was my coworker. I know him at work for years. It is unlikely he take money and run away.

He ask me a loan to scale up his business, promised to pay 15% annually.

His work is in manufactures industry, maybe B2B. He said he his business don't depend on number of customer available. I don't know. I am a salary man. I know nothing about business and investment.

I haven't ask him into the detail yet. I know nothing about this type of business. He seem confident, but I feel the 15% is so unlikely that will come with (hidden) risk. Maybe my friend is also a victim of another scam, or he just overconfident.

People of Lemmy, I ask you, those who are investor and business owner: is >= 15% annually ROI possible ?

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[-] bjoern_tantau@swg-empire.de 32 points 1 year ago

Get it in writing.

But yeah, it's sketchy as fuck. If he could guarantee that ROI he could just go to a bank.

If you can afford to lose the money and maybe tolerate a lengthy trial go for it. Personally I couldn't.

[-] hahattpro@lemmy.world 11 points 1 year ago

The reason he can't go to the bank because he have take enough loan and can't take anymore. He said I can make money by apply for loan against property, and loan to him and pocket the different.

It seem that he want to take more loan than the bank want to give him.

Yeah it seem risky as fuck. So i am asking.

[-] Junkers_Klunker@lemmy.world 35 points 1 year ago

That sounds sketchy af. I would run, FAR ...

[-] moody 19 points 1 year ago

So he wants you to take a loan out using your property as collateral to invest in his business? And if he doesn't get you the promised return, what do you think happens to your collateral when you can't pay back your loan?

[-] agressivelyPassive@feddit.de 18 points 1 year ago

If his business would be viable, banks would give him loans up to a reasonable amount.

[-] cabbagee@sopuli.xyz 16 points 1 year ago

If he can't pay back the bank loans, how will he be able to pay back yours?

[-] Moobythegoldensock@lemm.ee 14 points 1 year ago

That’s not how that works. For a business, if he can show the bank his business plan, they’ll loan him whatever they think he can afford to pay, and at a lot better rate than 15%. The fact that the bank isn’t suggests they think he’s full of shit.

[-] roguetrick@kbin.social 9 points 1 year ago

He said I can make money by apply for loan against property, and loan to him and pocket the different.

You never give loans to someone that you're not completely prepared to write off. You absolutely don't give loans with loans (unless you're a bank and getting those loans from a central bank, which I doubt you are).

[-] EdanGrey@sh.itjust.works 9 points 1 year ago

Absolutely do not take a loan out to loan to him

[-] retrieval4558@mander.xyz 6 points 1 year ago

Anyone who would suggest this does not have your best interests at heart

this post was submitted on 01 Nov 2023

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