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Shepherd Cox and Platinum Portfolio Builder

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  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    Christmc wrote: »
    I personally wouldn’t even think about taking a dividend when the debt and interest payments are so huge .
    Perhaps then don't set up a geared property investment business, or don't invest in this one :)
  • londoninvestor
    londoninvestor Posts: 1,351 Forumite
    Sixth Anniversary Combo Breaker
    Christmc wrote: »
    Surely it would make more sense to lower the debt levels rather than milking the company ?

    Surely it would - if the company were being run in the interests of its investors rather than its directors. And of course all companies are, especially property development companies that keenly promote themselves to small investors.

    If only I could figure out what I'm missing...
  • The thing is when you run those debt levels offering very high fixed returns it requires the businesses to be constantly highly profitable or to be valued higher each year to increase their LTV but of the economy even slightly dips then they have no wiggle room at all and they default on investors .

    So I don’t understand how they are advertised as low risk . But they say that in their marketing .

    One of their massive loans 7% £7.7m is due for full repayment in a year or two , so what if they can’t repay or refinance ?

    The thing is the debt levels are massive but on top of that they promise to pay 115% of what’s invested so that debt level is actually artificially low


    How does this work ???
  • kaola
    kaola Posts: 1 Newbie
    First Post
    Check out the safeorscam.net reporting on Shepherd Cox Hotels being forced into administration
  • Nick Carlile was made bankrupt yesterday. Don't go near him or any of the vehicles they have tried to move assets to.
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