Financial hook ups.

keep going

Those of you with money to invest know about the poor returns available with institutions at the monment while banks are increasing their margin on borrowings to rebuild their balance sheets.so why cant people with money and people who need to borrow hook up directly at say 3 per cent andtake security on assets.

Milked out

There is something like that crowd funding I think It's called, but they require a return greater than 3%. To be honest it could get very messy the regulator has already come out cautioning on the crowd funding thing afaik

Username John

keep going wrote: »

Those of you with money to invest know about the poor returns available with institutions at the monment while banks are increasing their margin on borrowings to rebuild their balance sheets.so why cant people with money and people who need to borrow hook up directly at say 3 per cent andtake security on assets.

Wouldn't see how it would work practically? You'd want a lot more than 3% return.

Imagine if you put in 10k, after a year, you would only get 300 euro return.
And I question the security on assets - lets say someone has a bad year, and they say "can I push the loan out til next year" But you want the 10k back this year - what do you do now? If it goes to law, your 10k wont go far...

I would say if you had money to spend, invest / gamble it on stock, or whatever. But trying to get into the same business as banks, seems like a bad idea to me...

But then, maybe I just don't see the potential

Mad4simmental

You can get 2 or 3% in a savings account so whi risk loaning it out to perhaps never see it agen and wind up being the bad guy?

lakill Farm

setting an idea up for a few weeks time.

company wants to borrow €35k, by selling 100 shares of €350 each. For the €350 you will get

1 share and you can sell on or gift and will receive 7.5% interest per year. the option is also there to sell it back to the company also for €350

share is secured on a building

Username John

lakill Farm wrote: »

setting an idea up for a few weeks time.

company wants to borrow €35k, by selling 100 shares of €350 each. For the €350 you will get

1 share and you can sell on or gift and will receive 7.5% interest per year. the option is also there to sell it back to the company also for €350

share is secured on a building

If it all goes very badly, I assume the investment is gone? (Its not like you are a creditor is it?)

lakill Farm

Username John wrote: »

If it all goes very badly, I assume the investment is gone? (Its not like you are a creditor is it?)

the building is there and directors are guaranteeing the investment of €350 per share. so no the investment isnt gone

bogman_bass

Mad4simmental wrote: »

You can get 2 or 3% in a savings account so whi risk loaning it out to perhaps never see it agen and wind up being the bad guy?

not these days you wont!

Mad4simmental

bogman_bass wrote: »

not these days you wont!

Forget about the "bricks & morter" banks you can freely get that on internet banks. You don't haveto bank in Ireland anymore. I have mony left in Austraila getting %4.2

Oldtree

Mad4simmental wrote: »

Forget about the "bricks & morter" banks you can freely get that on internet banks. You don't haveto bank in Ireland anymore. I have mony left in Austraila getting %4.2

Is it in a bank there? Can you give any details please?

Username John

Mad4simmental wrote: »

Forget about the "bricks & morter" banks you can freely get that on internet banks. You don't haveto bank in Ireland anymore. I have mony left in Austraila getting %4.2

But are you not playing the currency markets then as well?

Or is it banked in euros, in Australia?

lakill Farm

dont forget money earned abroad is subject to irish income tax

Mad4simmental

Oldtree wrote: »

Is it in a bank there? Can you give any details please?

Yes, I am with ANZ myself. you can pitch them agents one another and fight for a better deal. Exchange charges have got very good the last few years with company's like courrency fair.

http://m.mozo.com.au/#sa-product-home

http://www.infochoice.com.au/banking/savings-account/online-savings.aspx

Many variables with different accounts as to how much you may have to put into an account per month or how long you can let money sit there. I'm far from an expert in this field but there are far better deals to be got than using the usual AIB & BOI.

Another very good reputable bank,

http://mozo.com.au/savings-accounts/information/p-n-bank/Hi-Saver/4003

Oldtree

lakill Farm wrote: »

setting an idea up for a few weeks time.

company wants to borrow €35k, by selling 100 shares of €350 each. For the €350 you will get

1 share and you can sell on or gift and will receive 7.5% interest per year. the option is also there to sell it back to the company also for €350

share is secured on a building

lakill Farm wrote: »

dont forget money earned abroad is subject to irish income tax

As is gross income on shares here, at the higher rate of tax.

Oldtree

lakill Farm wrote: »

setting an idea up for a few weeks time.

company wants to borrow €35k, by selling 100 shares of €350 each. For the €350 you will get

1 share and you can sell on or gift and will receive 7.5% interest per year. the option is also there to sell it back to the company also for €350

share is secured on a building

That seems like a high rate of return in the current climate. Is the company unable to borrow money from the bank?

Oldtree

lakill Farm wrote: »

the building is there and directors are guaranteeing the investment of €350 per share. so no the investment isnt gone

What if they go bankrupt?

Mad4simmental

Username John wrote: »

But are you not playing the currency markets then as well?

Or is it banked in euros, in Australia?

You are playing the currency markets too, but to be honist the euro is as low as ever and is only going to go up IMO. The OZ doller is very strong and is driven by resorses such as iron ore that is being sold for the lowest prices in years.

Befoure the Big Bang a few years ago you would get around $0.85 for one euro.

After the bang it dipped to around $0.62 for your euro.

It now sits around $0.68 for your euro. I think this will pann out to around $0.72 as a good avrege to what the oz doller is worth. In other words the ozzy doller is currently undervalued.

lakill Farm

Oldtree wrote: »

What if they go bankrupt?

its test driving future ideas. Directors have invested more than the shareholders.

the investment is in the company and current book value on fixed project is €130k so company could be liquadated and shareholders would not loss out .

Its high percentage however no point investing money at 0.01% like banks
3 banks have offered in excess of €50k each to the company so funding is freely available

Oldtree

lakill Farm wrote: »

its test driving future ideas. Directors have invested more than the shareholders.

the investment is in the company and current book value on fixed project is €130k so company could be liquadated and shareholders would not loss out .

Its high percentage however no point investing money at 0.01% like banks
3 banks have offered in excess of €50k each to the company so funding is freely available

Out of interest what % were they offered from the banks?

keep going

Mad4simmental wrote: »

You can get 2 or 3% in a savings account so whi risk loaning it out to perhaps never see it agen and wind up being the bad guy?

Where

Mad4simmental

keep going wrote: »

Where

See above.

lakill Farm

Oldtree wrote: »

Out of interest what % were they offered from the banks?

between 4.9% and 6.5% i think

BTW ; Im not trying to promote this product

Oldtree

lakill Farm wrote: »

setting an idea up for a few weeks time.

and will receive 7.5% interest per year.

Oldtree wrote: »

Out of interest what % were they offered from the banks?

lakill Farm wrote: »

between 4.9% and 6.5% i think

Why would they want to pay more money to investors than was on offer from the banks?

lakill Farm wrote: »

setting an idea up for a few weeks time.

lakill Farm wrote: »

Im not trying to promote this product

lakill Farm

Oldtree wrote: »

Why would they want to pay more money to investors than was on offer from the banks?

Im an accountant, i am doing it on behalf of a client.

Bit like breaking to the market and offering lower prices for services/goods to offer a new product like this the return has to be higher.

In the future we hope spin off products will be launched on property and investmeants

Oldtree

lakill Farm wrote: »

the investment is in the company and current book value on fixed project is €130k so company could be liquadated and shareholders would not loss out .

This is not absolute and would depend on the debts of the company at the time of liquidation, as well as the possibility of assets losing value for whatever reason.

Oldtree

lakill Farm wrote: »

In the future we hope spin off products will be launched on property and investmeants

Property is a bit of a sore word in Ireland when it comes to investment.

keep going

Oldtree wrote: »

Property is a bit of a sore word in Ireland when it comes to investment.

Not sure about that anymore, by the way my sugestion is in relation to land purchase so it would be on similar terms to banks except the interest would be lower

lakill Farm

Total assets €130,000

liabilities nil

shareholder funds €100
shareholder share premium account €34,900

Oldtree wrote: »

This is not absolute and would depend on the debts of the company at the time of liquidation, as well as the possibility of assets losing value for whatever reason.

moy83

Oldtree wrote: »

Property is a bit of a sore word in Ireland when it comes to investment.

I'd say its changing though . I know a few lads that are trying to buy again

Oldtree

lakill Farm wrote: »

Total assets €130,000

liabilities nil

shareholder funds €100
shareholder share premium account €34,900

Just so I understand, the company owns a building (freehold) valued at €130,000 and no other assets. It has an idea for a business, and wants to borrow €35K from shareholders to implement the business idea, while offering a guaranteed return to shareholders (rather than borrow from a bank at a lower rate of interest)?? I wish them only success in their adventure.

lakill Farm

Oldtree wrote: »

Just so I understand, the company owns a building (freehold) valued at €130,000 and no other assets. It has an idea for a business, and wants to borrow €35K from shareholders to implement the business idea, while offering a guaranteed return to shareholders (rather than borrow from a bank at a lower rate of interest)?? I wish them only success in their adventure.

'

no thats what the 35k is for . to build a €130k freehold asset

Oldtree

lakill Farm wrote: »

'

no thats what the 35k is for . to build a €130k freehold asset

So in effect they just have an idea? How can they guarantee a 7.5% return pa, let alone guarantee a return of the capital invested?

lakill Farm

Oldtree wrote: »

So in effect they just have an idea? How can they guarantee a 7.5% return pa, let alone guarantee a return of the capital invested?

the building is going to be rented. lease agreed

Oldtree

lakill Farm wrote: »

the building is going to be rented. lease agreed

So the company owns the land the building is to be built on and have planning permission for the building and its use?

lakill Farm

Oldtree wrote: »

So the company owns the land the building is to be built on and have planning permission for the building and its use?

yes at planning stage now as far as I know.

Oldtree

lakill Farm wrote: »

yes at planning stage now as far as I know.

So a ways to go yet.
Is the leasee willing to sign a lease immediately upon a grant of planning permission?
What would the penalties for failing to meet the deadlines for completion be?
Should the project fail in the construction phase, subsequent to the signing of the lease, will the leasee have to be compensated and will there be enough funds left from the sale of the lands to recover the invested share monies and promised investment returns?

lakill Farm

Oldtree wrote: »

So a ways to go yet.
Is the leasee willing to sign a lease immediately upon a grant of planning permission?
What would the penalties for failing to meet the deadlines for completion be?
Should the project fail in the construction phase, subsequent to the signing of the lease, will the leasee have to be compensated and will there be enough funds left from the sale of the lands to recover the invested share monies and promised investment returns?

lease is to be signed once notice of commencement is handed in

Build time is 8months plus 1 month notice of commencement (eg 9 months)

no penalty or compensation

Oldtree

lakill Farm wrote: »

lease is to be signed once notice of commencement is handed in

Build time is 8months plus 1 month notice of commencement (eg 9 months)

no penalty or compensation

So is there no penalty for the leasee should they change their mind in the interim and withdraw?

lakill Farm

Oldtree wrote: »

So is there no penalty for the leasee should they change their mind in the interim and withdraw?[/QUOTE


leasee wount pull out. agreeing to 25 year lease

frazzledhome

I thought this thread would be of some value?

All we've gotten so far is a guy promoting an investment and a guy not willing to invest with everyone else wondering what this thread is really about

Oldtree

lakill Farm wrote: »

the building is there

It would appear it is not yet there.

lakill Farm wrote: »

leasee wount pull out. agreeing to 25 year lease

If the leasee pulls out with no penalty, all the investors will be left high and dry. Hope is a long way from a guaranteed return.

Mad4simmental

frazzledhome wrote: »

I thought this thread would be of some value?

All we've gotten so far is a guy promoting an investment and a guy not willing to invest with everyone else wondering what this thread is really about

It is of huge value, naby not in the way op first thought it would be.
If you are looking for investment to your farm to expand or any other buisness have all the facts %100 ironed out.

In this case I'm guessing the bank will give the cash but only when the contract is signed up for 25 years. The contract isn't signed up yet. So if I give up 30.000 and the tenent pulled out it leaves me high and dry and the land owners don't haveto worry about a bank after them.

stretch film

I cant speak for my fellow dragons but as this is something thats not in my field ... I'm declaring myself out

lakill Farm

Oldtree wrote: »

It would appear it is not yet there.



If the leasee pulls out with no penalty, all the investors will be left high and dry. Hope is a long way from a guaranteed return.

Leasee wount pull out as they have an association with the leaser and rent is at market rate. designed to encourage investors

Oldtree

lakill Farm wrote: »

Leasee wount pull out as they have an association with the leaser and rent is at market rate. designed to encourage investors

How close of an association?

naughto

I must be the only one who thinks there is something to be made from Mr accountant's idea

lakill Farm

Oldtree wrote: »

How close of an association?

enough

Oldtree

naughto wrote: »

I must be the only one who thinks there is something to be made from Mr accountant's idea

7.5% interest per year is a very attractive rate of return in the current climate, but before I would part with my hard earned money I would have all my prudent questions answered, and the risks stated plainly.

lakill Farm

Oldtree wrote: »

7.5% interest per year is a very attractive rate of return in the current climate, but before I would part with my hard earned money I would have all my prudent questions answered, and the risks stated plainly.

that is excellent due diligence in all fairness.

To many people out there trying to part hard earned money from people.

Oldtree

lakill Farm wrote: »

enough

lakill Farm wrote: »

that is excellent due diligence in all fairness.

To many people out there trying to part hard earned money from people.

Then why are you refusing to answer my question when you will be asked the same thing by potential investors? Maby even people from here!

lakill Farm

Oldtree wrote: »

Then why are you refusing to answer my question when you will be asked the same thing by potential investors? Maby even people from here!

because im not giving away company information away on a discussion group until such time as its made public