Terra Firma & TBE Consultants. 12% fixed return in 12 months? Too good to be true?

[presidenttttt]

Some family have received similar structured/fixed investment options regarding irish forestry. This one relates to energy investment. The websites look professional, but googling elsewhere brings up very limited information. Thoughts?

Email copied below.

 

[Steven Barrett]

Corporate Guarantee on investor capital – original capital secured against all company assets with a RICS valuation report on all company assets.

A guarantee is only worth as much as the company underwriting it. If it is an insolvent company, it is useless.

This looks like a loan note. The 12% is the interest rate being offered to use your money. Even if the investment grows by 100% in the 12% months, you will get 12%.

By way of comparison, the S&P 500 returned 28.25% in the last 12 months and the MSCI World index returned 29.12%.

I think I would prefer to be invested in a global basket of some of the worlds biggest companies than a power plant in St Helens.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

 

[presidenttttt]

..
This looks like a loan note. The 12% is the interest rate being offered to use your money. Even if the investment grows by 100% in the 12% months, you will get 12%.

Presumably these initiatives would get bank cash at 8% if they were not seriously high risk?

 

[jpd]

Don't be spoiling a good story

 

[Steven Barrett]

Presumably these initiatives would get bank cash at 8% if they were not seriously high risk?

I would also presume that they would need to provide more security. Or maybe they already have and need more money, so they are getting unsecured loans from investors.

Remember, when people launch ventures or events, they tend to be over optimistic in their projections. They think that everyone sees this investment opportunity as they see it and so the numbers they produce tend to look better than they actually are.

Loan notes are a bad idea anyway. Dolphin Trusts were loan notes. And I don't like the way the email uses FOMO as a selling technique to you either. You missed out on the last opportunity, don't miss out on the next one!!!


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)