Crooks will get the lot

Money Magazine Australia - - Q&A | ASK PAUL -

QIs there any­thing stop­ping us (legally) from ad­ver­tis­ing via so­cial me­dia the of­fer of short-term bridg­ing loans se­cured by a first mort­gage? It could be through our com­pany or as in­di­vid­u­als. This is to in­vest an in­her­i­tance of around $3.5 mil­lion.

Now this is in­ter­est­ing. I can say with con­fi­dence I have not been asked this in many decades of an­swer­ing ques­tions. I sus­pect you would need some sort of broking li­cence. I could find out quickly but I don’t plan to as I reckon this is a re­ally, re­ally bad idea. To me it looks like a great way to turn a large for­tune into a small one.

Cathy, given your ques­tion I as­sume you know noth­ing about this area. And it is full of more traps and al­li­ga­tors than a swamp. I reckon you will have ev­ery crook and rogue in town con­tact you with false doc­u­ments and dodgy val­u­a­tions. Your money will be gone in a flash.

If you want to put a small part of your money in peer-to-peer loans, talk to the lead­ing com­pa­nies in this area. They can man­age the risks and loans. Yes, they will take a clip but that is bet­ter than los­ing your $3.5 mil­lion, which I be­lieve you will.

With the rest, please pro­tect your good for­tune and make sen­si­ble de­ci­sions. This could be shares, prop­erty and par­tic­u­larly su­per. Sorry to sound so neg­a­tive but I hate see­ing peo­ple go into un­reg­u­lated ar­eas they know noth­ing about and lose the lot.

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