hi all
have a read of this part of the last link.
http://www.theaustralian.news.com.au/story/0,20867,21433805-5001942,00.html
In Britain, users of a similar product pioneered by the Bank of Scotland in the 1990s had this problem and started lobby groups when property prices raced ahead, but Hickey says "it was a far less generous product as far as borrowers were concerned and the lender had problems with funding it, so it was withdrawn". "It had a repayment factor of three times the gain whereas the Rismark one is two times the gain.
and this is my concern.
if you have 2.5 mil 95% borrowed for a property
you could not afford
but bought because you have 20% interest free and that interest free is not there
you are in very big trouble.
and yes it has happened before
so this is not a pilot, new or for that matter unusual product its just not been used in the resi market here.
I can't understand people saying that this is a major fund launch and it can't go under.
and you have westpoint,fincorp
why can't it go under.
is it that stable from people looking at it.
please tell me where you see the stability is.
its not a bank
adelaide bank is the first not the mezz lender
macq is the manager not the lender.
and perpetual is the under writer not the lender.
show me the security of the 20% funder.
would you accept mezz from a lender like this
come on guys.
you have alot of developers on this board and answer this question
if this was a mezz funder to your project
would you accept your mezz from a structure like this and have your 2 mil or three mil project at risk.
me no.
and if you say they are a big funder my answer is very simple.
the bigger they are
the harder they fall and the less chance you have of getting anything.
there are heaps of mezz funders out there that will put 2 mil in a project
and I can give you a list that when you come to get the 500k over, the 1 mil they have run out or are waiting for funding to come in to give to you.
usually very small family groups and they can and do go west.
but at least they have an income.
people seem to think that I don't like richard or this product well thats not true
I understand the product, I understand what it aimed at, and I think i know the motives behind the product.
what I don't understand is people can't understand or see what it is,
if you understand mezz funding and you understand that to survive you must make an income or have money comming in
and yet people are still saying that this is a rock solid investment.
and that I can't understand.
I would like richard as an financial planner
would he recommend people to invest in the fund that is supplying the cash to efm.
and what he would say with regards to cash flow and how he sees it staying alive.
mr joye did say that they are fund raising
well good please give us a bit of a run down on
how are you going to run the fund
where is the income to pay the telephone girl coming from.
we can ask mr joye and will get the its non of your business.
but richard you have put up this post.
you have not at this stage answered any of the question so far
so I will make it simpler for you.
and I would like not reteric just a yes or no will be fine.
as a financial advicer not a poster.
A.
would you recommend anyone for this efm loan having regard to all thats in this post to date.
B
would you recommend anyone to invest in rismark fund raising funds that will have no return.
c
and would you personally invest in the rismark fund raising funds for the efm loans.
for me I will give my answers
A no
b no
c definatley no
and for the other financial advicers out there or brokers
maybe over a cup of coffee you can answer the same question
I would be very interested in the one that says yes to any of the three.
and remember that this is an open board and if this does go west
I will be asking the same question in 6 months.
lots of people have said if only we had known to alot of thing well here it is.
I have told you my views and will leave this post
I will read with interest richards post.
for me I will pin my flag on this being a total calapse and I think alot of people are going to get hurt
and that is very unfortunate.
I don't see it running for more then 12 months
and I do think I will be drinking my coffee as I was when I heard of fincorp and I will be comming back here and saying I told you so.
hope I am wrong but I don't think I am
history has a problem in that people forget but history repeats.
good luck to anyone that has this loan, for me you are going to need it.
and check that the person that sold it or told you to take this loan does have indemnity insurance.
this is my view and is not financial advice
for that you need to go and see a financial advicer with insurance and who you can trust.
have a read of this part of the last link.
http://www.theaustralian.news.com.au/story/0,20867,21433805-5001942,00.html
In Britain, users of a similar product pioneered by the Bank of Scotland in the 1990s had this problem and started lobby groups when property prices raced ahead, but Hickey says "it was a far less generous product as far as borrowers were concerned and the lender had problems with funding it, so it was withdrawn". "It had a repayment factor of three times the gain whereas the Rismark one is two times the gain.
and this is my concern.
if you have 2.5 mil 95% borrowed for a property
you could not afford
but bought because you have 20% interest free and that interest free is not there
you are in very big trouble.
and yes it has happened before
so this is not a pilot, new or for that matter unusual product its just not been used in the resi market here.
I can't understand people saying that this is a major fund launch and it can't go under.
and you have westpoint,fincorp
why can't it go under.
is it that stable from people looking at it.
please tell me where you see the stability is.
its not a bank
adelaide bank is the first not the mezz lender
macq is the manager not the lender.
and perpetual is the under writer not the lender.
show me the security of the 20% funder.
would you accept mezz from a lender like this
come on guys.
you have alot of developers on this board and answer this question
if this was a mezz funder to your project
would you accept your mezz from a structure like this and have your 2 mil or three mil project at risk.
me no.
and if you say they are a big funder my answer is very simple.
the bigger they are
the harder they fall and the less chance you have of getting anything.
there are heaps of mezz funders out there that will put 2 mil in a project
and I can give you a list that when you come to get the 500k over, the 1 mil they have run out or are waiting for funding to come in to give to you.
usually very small family groups and they can and do go west.
but at least they have an income.
people seem to think that I don't like richard or this product well thats not true
I understand the product, I understand what it aimed at, and I think i know the motives behind the product.
what I don't understand is people can't understand or see what it is,
if you understand mezz funding and you understand that to survive you must make an income or have money comming in
and yet people are still saying that this is a rock solid investment.
and that I can't understand.
I would like richard as an financial planner
would he recommend people to invest in the fund that is supplying the cash to efm.
and what he would say with regards to cash flow and how he sees it staying alive.
mr joye did say that they are fund raising
well good please give us a bit of a run down on
how are you going to run the fund
where is the income to pay the telephone girl coming from.
we can ask mr joye and will get the its non of your business.
but richard you have put up this post.
you have not at this stage answered any of the question so far
so I will make it simpler for you.
and I would like not reteric just a yes or no will be fine.
as a financial advicer not a poster.
A.
would you recommend anyone for this efm loan having regard to all thats in this post to date.
B
would you recommend anyone to invest in rismark fund raising funds that will have no return.
c
and would you personally invest in the rismark fund raising funds for the efm loans.
for me I will give my answers
A no
b no
c definatley no
and for the other financial advicers out there or brokers
maybe over a cup of coffee you can answer the same question
I would be very interested in the one that says yes to any of the three.
and remember that this is an open board and if this does go west
I will be asking the same question in 6 months.
lots of people have said if only we had known to alot of thing well here it is.
I have told you my views and will leave this post
I will read with interest richards post.
for me I will pin my flag on this being a total calapse and I think alot of people are going to get hurt
and that is very unfortunate.
I don't see it running for more then 12 months
and I do think I will be drinking my coffee as I was when I heard of fincorp and I will be comming back here and saying I told you so.
hope I am wrong but I don't think I am
history has a problem in that people forget but history repeats.
good luck to anyone that has this loan, for me you are going to need it.
and check that the person that sold it or told you to take this loan does have indemnity insurance.
this is my view and is not financial advice
for that you need to go and see a financial advicer with insurance and who you can trust.