Alternative investment vehicles - less commercial

[Bellcose]

@basilio
Run away.
If you want high risk , at least ask for high reward!!
I invest a bit of cash, that i can afford to lose as conscious it is high risk, with a money lenders company (usually for developers bridge loans for a couple of months, currently on my 3rd batch).
But before investing:
->Recommended, know some of the company owners/financier, only invest on specific projects with only first mortgagee rights.
Currently around 10.5% pa returns ongoing rates.
100k is maybe a lot?... or not..not sure how much you own but make sure you can afford to lose it..

There is merit in what you have posted @qldfrog. This mob is not an ADI and investors funds are not covered by the $250k guarantee. Out of interest have a look at its backer, Marbanc International.

And Income Direct makes money through:

"The capital advanced to Income Direct™ from its clients can be applied to a range of commercial activities including:

• Investment (including debt and equity instruments)
• Commercial lending
• Re-financing
• Liquidity reserves
• Capital management
• Operational expenses
• Other commercial purposes as management deems appropriate

Funding from our clients provides us with a fixed cost of funds to carry out our commercial activities.

Note: Income Direct does not engage in consumer lending, cryptocurrency investment or stockmarket day trading."

They must be lending capital at a higher rate than that paid to investors. Begs the question if a bank isn't prepared to fund you due to the potential risks, where do you go to? Not saying it'll fall over but I'd be cautious taking into account all the puffery on the website.

 

[divs4ever]

There is merit in what you have posted @qldfrog. This mob is not an ADI and investors funds are not covered by the $250k guarantee. Out of interest have a look at its backer, Marbanc International.

And Income Direct makes money through:

"The capital advanced to Income Direct™ from its clients can be applied to a range of commercial activities including:

• Investment (including debt and equity instruments)
• Commercial lending
• Re-financing
• Liquidity reserves
• Capital management
• Operational expenses
• Other commercial purposes as management deems appropriate

Funding from our clients provides us with a fixed cost of funds to carry out our commercial activities.

Note: Income Direct does not engage in consumer lending, cryptocurrency investment or stockmarket day trading."

They must be lending capital at a higher rate than that paid to investors. Begs the question if a bank isn't prepared to fund you due to the potential risks, where do you go to? Not saying it'll fall over but I'd be cautious taking into account all the puffery on the website.

yes at 8.75% ( per annum ) i would want to know precisely what i am investing it ( hence the Twiggy reference earlier )

 

[qldfrog]

There is merit in what you have posted @qldfrog. This mob is not an ADI and investors funds are not covered by the $250k guarantee. Out of interest have a look at its backer, Marbanc International.

And Income Direct makes money through:

"The capital advanced to Income Direct™ from its clients can be applied to a range of commercial activities including:

• Investment (including debt and equity instruments)
• Commercial lending
• Re-financing
• Liquidity reserves
• Capital management
• Operational expenses
• Other commercial purposes as management deems appropriate

Funding from our clients provides us with a fixed cost of funds to carry out our commercial activities.

Note: Income Direct does not engage in consumer lending, cryptocurrency investment or stockmarket day trading."

They must be lending capital at a higher rate than that paid to investors. Begs the question if a bank isn't prepared to fund you due to the potential risks, where do you go to? Not saying it'll fall over but I'd be cautious taking into account all the puffery on the website.

And the issue o see is that you put your money in a big pool, which will be used gor everything from salaries, bonus, office rents as well as various funding/lending you have no clues about nor recourse
Anyway, up to you but proceed with care

 

[divs4ever]

And the issue o see is that you put your money in a big pool, which will be used gor everything from salaries, bonus, office rents as well as various funding/lending you have no clues about nor recourse
Anyway, up to you but proceed with care

yes this should have been aimed at ONLY very savvy investors , but seems to be willing to take on cashed up retirees ( at least that is the way i read the website ) ( $100,000 up to $20 million !! )

 

[Bellcose]

So what? The operative word in SMSF is Self-Managed. If the Trustees do not understand the risks of the chosen investments, it's on the Trustee. If the Trustee doesn't understand or does not bother to investigate, then don't be a Trustee of an SMSF. It's basic stuff and sufficient warnings have been given multiple times by the ATO and other bodies on the responsibilities of a Trustee.

 

[divs4ever]

So what? The operative word in SMSF is Self-Managed. If the Trustees do not understand the risks of the chosen investments, it's on the Trustee. If the Trustee doesn't understand or does not bother to investigate, then don't be a Trustee of an SMSF. It's basic stuff and sufficient warnings have been given multiple times by the ATO and other bodies on the responsibilities of a Trustee.

but i still hate to see the gullible end up badly , when they are sweet-talked in without understanding the true risk

sure if Jame Packer throws $2 mill at this and it goes badly well he should have known ( and he should still have a few mill left to survive on )

basic , yes i agree , but the website makes it so simple to part with your cash

 

[basilio]

I was not interested in punting 100k into Income Direct. I had read the website thoroughly and the red flags just kept coming - as Q Frog, Bellcose ect pointed out.

It was posted by nature of a heads up. The fact is it does look attractive on the surface for cash rich retirees to earn another 3% on their investments. I think the salesmen on the other end of the line taking incoming calls will be pulling a big commission as will the organisers, operating costs ect. I think this is worth keep an eyeing on.

In my view I believe ASIC should someone to phone in a as potential investor and follow it up with a face to face and ask for details of the companies operating practices. If it is half honest they would have nothing to hide. If it is dodgy then clocking them earlier rather than later would surely make sense ?

 

[JohnDe]

Anyone had any experience with Income Direct ?
They are targeting High Worth people to loan at least 100k for their investment portfolio.

Interest rates start at 5.95% for 6 months to 8.75% for 5 years commitment.

Company | Income Direct™ Fixed Income Accounts from $250k

Choose Income Direct™ to earn more income on your capital. 100% online fixed interest rate solutions from 6-120 months. $250k minimum. Open an account in 2 minutes.

incomedirect.com.au

Fairly new company, their rates look decent but for my hard earned I will stick to long term quality.

Macquarie 3 month term deposit offers 4.9%