20% p.a. return guaranteed by mansion developers?

Hausmarg

A friend of mine was approached by a salesman for a property development company called Stonehaven Group offering a bond with a guaranteed return of around 40% in two years time if he invested a six-figure sum today.How can this be so?If it really is true why does the company need a salesman?The deal must sell itself.

Almost nothing about this company on the internet.Seems to be based in Surry, with russian connections. Companies House seems to be a cluster of private companies with stonehaven in the name.

Is the mansion business really that profitable?Should my friend trust the deal?

BarleyGB

Dont tell me..

You are a representative of Stonehaven Group and a scammer looking for gullible people to be taken in by your thinly veiled concern for your friend.

SPAM

CKhalvashi

Sounds really dodgy if you ask me!

Is the mansion business that profitable? Well, it depends on where/what, but possibly it is.

Don't touch with a barge pole!

CK

ETA: Company not filed accounts (incorporated end of last year) and Russian done with online translator (I can't speak for Chinese, as I don't speak it).

Seriously dodgy!

ChesterDog

Let's see now...

A too good to be true offer, and one that needs a salesman to push it...

Guaranteed return, but guaranteed by the company that will probably have gone belly-up if one finds oneself needing to make a claim...

Hmm...

Er....


No.

:-)

arfurdent

Got to be worth at least £5,000:rotfl:

dunstonh

Remember that guarantees in property sales are not the same as guarantees with investment products. Guarantee has a specific meaning in financial services. Whereas with property, you can still lose 100% of your capital or income with a guarantee.

Should my friend trust the deal?

he needs to ask his solicitor. After all, with deals like this, you never ever enter into them without seeking legal advice.

lalman

all i have to say is:

hahahahaha

and

no.

Next :-P

opinions4u

Loving Dunstonh and the straight bat approach!

lisyloo

It's clearly dodgy.
Let's suppose you were the property developer. Would you
a) borrow from a bank to maximise profit
b) be altruistic and let you friends and family benefit
c) let strangers have the benefit

I think we all know that c) doesn't happen so it's pretty much guaranteed to be a scam.

CKhalvashi

lisyloo wrote: »

It's clearly dodgy.
Let's suppose you were the property developer. Would you
a) borrow from a bank to maximise profit
b) be altruistic and let you friends and family benefit
c) let strangers have the benefit

I think we all know that c) doesn't happen so it's pretty much guaranteed to be a scam.

Actually, I have seen it before where profits are split 50/50 with investors. If memory serves me right, a company in my home country were doing this, and have done this for the last 10 years. I haven't posted the name, as I don't want to be accused of advertising, however I'm led to believe they've now completed 10000 properties.

In the UK, however, bank credit is easily available for projects like this, and therefore I remain sceptical.

CK

JohnRo

I couldn't help myself, what you probably meant to say was achieve a) and b) via c) as below

lisyloo wrote: »

..

c) let strangers have some of the benefit and all of the risk

I think we all know that c) does happen everywhere in financial services so it's pretty much guaranteed to be a winner for the seller