Property bonds

sibeks

Hi,
I have been cold called to invest in property bonds and the company has sent me an email on how they work but it does't show how much they expect you to invest but they do say a guarantee of 12.25% return per annum. I don't know whether I should mention the name of the company on here incase I'm not allowed but wondered if anyone invests in property bonds or should be avoid because they called me out of the blue but they had my details because I have traded in stocks and shares in the past.

Many thanks in advance
Si

bigadaj

Avoid, almost certainly a scam.

No harm in naming and shaming, can't see anyone legitimate cold calling you unless you've worked with them before.

sibeks

O in that case they are called "HoneyGold Capital" and Olmstead a Palmetto company

sibeks

Thanks Bigadaj for your advice - I thought as much and just wanted to find out if anyone else has invested (or not) in this

dunstonh

I have been cold called to invest in property bonds and the company has sent me an email on how they work but it does't show how much they expect you to invest but they do say a guarantee of 12.25% return per annum.

Regulated companies do not cold call on investments. Just unregulated schemes or dodgy companies.

Guarantee in the unregulated world do not mean the same as guaranteed in the regulated world. This type of investment has 100% of capital as loss potential.

sibeks

Thanks - His email said this after I gave him my email address after his cold call:

Mr S. xxx

Thank you for your time today. Please find attached brief information on the opportunity discussed.

HoneyGold Capital acts as an independent broker and is excited to introduce the Olmsted bonds, offered by Olmsted Properties limited. Investors have the opportunity to capture the attractive income opportunities in the South-Eastern US property market. Single family homes are sourced, purchased, renovated and improved for energy efficiency and then let and managed.

Investors receive the benefits of being exposed to the US property market without the hassle of direct property ownership.

BENEFITS OF THE OLMSTED BONDS

· 12.25% Average interest rate per year on 5 year Roll-up option
· Interest paid Every 6 months – Option available for interest to be paid bi-annually
· Capital repaid upon maturity
· 3 year and 5 year options available
· 1.5% BONUS PAID AT MATURITY
· Proven Business Model – OVER US$70 MILLION INVESTED IN A SIMILAR STRATEGY IN THIS REGION SO FAR

SECURING YOUR CAPITAL AND MANAGING RISK
· DIVERSIFICATION – Exposure to a variety of underlying property
· SECURED – bonds are 100% secured by the underlying assets WHICH ARE UNENCUMBERED
· TRANSPARENCY – visibility to each of the underlying assets via online portal

· FCA Regulated Registrar

Peterking1965

I bought Olmsted bonds from Honeygold Capital recently and became concerned after reading this thread. What I did do was to contact Palmetto directly and ask them about the bonds. One of the consultants then invited me in to their offices in London. They are based near Fenchurch Street Station. It seems that Honeygold capital are just a small marketing company but Palmetto is in fact part of Central Markets who are regulated by the FCA. The consultant gave me the login details to look at all properties they manage on their website. You should ask them to give you this before you invest. I don't know how they are doing it but it seems they are buying the properties considerably below market value. The bonds only pay 12% interest but someone at Palmetto is going to make a lot of money when they sell the properties at market prices. I opted for payment every 6 months and should be getting my first payment in August 2014.

puk999

This is not the first time I've seen discussion about a likely scam, a few messages go by, then a person with no previous posts crops up and tries to say positive things about the company/scheme.

Beware!