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From: Colin Mills
Was at an OFI on the w/end. Bumped into some guy.I do not believe everything I'm told but....
Guy starts telling me he is a "professional" investor. He makes his money trading shares and IPs. Earlier this year he attended a course (run by a certain American gentleman) and is now firmly on the fast track. Tells me he has just started wrapping. He claims he is making a net positive cash flow of $500 per month from his first deal. I give him a funny look indicating he is talking BS. His reply was astounding. He claimed the tenant/owner was paying (wait for it) 12%!!!!!!!
I said who would be so dumb as to pay nearly twice the going rate and his reply was most illuminating. Oh he said, they teach you to find people who are desperate.
Desperate! More like brain dead! He borrows from the big-4 and relends it at nearly double the rate. There should be a law against it. Hang on, there is! Its breaking the law to borrow and subsequently relend money without a banking licence!!! This may shock some sheltered souls out there but if you wish to play the role of Shylock in this country you are required to be officially accredited as a bank. I suggest you give the Reserve Bank of Australia a quick call before your next wrap. Good luck in obtaining your banking licence.
PS I will throttle the first wrapper that comes back with that old line about helping people who cannot normally obtain finance. With friends like you lot who needs an enemy.
Was at an OFI on the w/end. Bumped into some guy.I do not believe everything I'm told but....
Guy starts telling me he is a "professional" investor. He makes his money trading shares and IPs. Earlier this year he attended a course (run by a certain American gentleman) and is now firmly on the fast track. Tells me he has just started wrapping. He claims he is making a net positive cash flow of $500 per month from his first deal. I give him a funny look indicating he is talking BS. His reply was astounding. He claimed the tenant/owner was paying (wait for it) 12%!!!!!!!
I said who would be so dumb as to pay nearly twice the going rate and his reply was most illuminating. Oh he said, they teach you to find people who are desperate.
Desperate! More like brain dead! He borrows from the big-4 and relends it at nearly double the rate. There should be a law against it. Hang on, there is! Its breaking the law to borrow and subsequently relend money without a banking licence!!! This may shock some sheltered souls out there but if you wish to play the role of Shylock in this country you are required to be officially accredited as a bank. I suggest you give the Reserve Bank of Australia a quick call before your next wrap. Good luck in obtaining your banking licence.
PS I will throttle the first wrapper that comes back with that old line about helping people who cannot normally obtain finance. With friends like you lot who needs an enemy.
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