'Guaranteed 12% return' on investment

Beenie

My friends have a tidy sum to invest and are looking round for suitable places.

They have told me that they are meeting an advisor next week who is pushing a guaranteed 12% return on capital. The investment would be in hotels.

It all sounds dodgy to me, but has anyone here come across this type of investment and thinks it's kosher?

Dazed_and_confused

Aren't Jewish hotels a slightly limited market?

Nasqueron

It's not guaranteed and never will be. Your friends will lose their money if it goes down

OldMusicGuy

The best rate you can get for a no-risk fixed rate savings product is under 3%. Investments in the stock market (where returns are NOT guaranteed) can average 5% to 7% in the long term. If someone has found a guaranteed 12% return, why are they not making a fortune themselves? Why do they need to waste their time trying to convince suckers to part with their money?

It may not be dodgy but it will likely be very high risk. Your friends need to think very hard about that before committing to it. It could well be dodgy.

Just read this thread to find out what can happen when people believe it when someone says "guaranteed": https://forums.moneysavingexpert.com/showthread.php?t=5346049

sully1311

Beenie wrote: »

My friends have a tidy sum to invest and are looking round for suitable places.

They have told me that they are meeting an advisor next week who is pushing a guaranteed 12% return on capital. The investment would be in hotels.

It all sounds dodgy to me, but has anyone here come across this type of investment and thinks it's kosher?

Please tell them to avoid at ALL costs!

AlanP_2

That adviser is a salesman.

David_Evans

Ask your friends to feign interest - then post the details of the investment on here.

masonic

Beenie

Thank you for your sound advice.

Our initial thoughts were 'that is too good to be true' and smelled a rat.

We have told our friends of our misgivings (and will again after the advice here) but they are dead set on hearing this man. They are naive people who have come into a lot of money, and need some help. I will do my best.

shaun_from_Africa

It's probably one of these types of "investments"
https://resortgroupinvestments.com/

"MINIMUM *12% ANNUAL RETURNS"

gordonbennet

These are usually schemes where the company ‘guarantee’ to top up the return (say on letting of hotel rooms) if they don’t meet the ‘expected’ returns. However invariably these companies fold within a very short period leaving their guarantee as worthless. And of course, the investor’s original sum lost forever.