Prospera Mortgage Investment Corporation

[Hanzo]

Has anyone invested with these guys? They have a no loss guaranteed investment that yields 7-11% a year. Sounds too good to be true. However, that is what my financial adviser told me. They also give a guaranteed return at the beginning of the year. Apparently this year, it's set at 11%. Kinda sounds like a ponzi scheme.

Any feedbacks?

[CanmoreOrLess]

Dump the "advisor", he is a joke getting kick backs (the norm) from PMIC. Only an idiot would believe 7-11%/year, no risk (no such thing). Stick your cash in an index fund and be bored to death with a stable return over the long haul.

[BananaFob]

Sounds like a real estate syndicator. I am always extremely skeptical of these guys, a lot of them are very, very shady... I'd stay away. A lot of these end up being fraudulent like Concrete and Platinum Equities.

[Masked Bandit]

If your gut instinct is to ask if it's legit or not, it most likely isn't.

[JRSC00LUDE]

Originally posted by CanmoreOrLess
Only an idiot would believe 7-11%/year, no risk.

If that was true, EVERYONE would be doing it with today's markets the way they are.

[max_boost]

Has anyone invested and seen any returns in these related investments? Just wondering.

[Weapon_R]

If these companies go belly up, their guarantee isn't worth the paper its written on.

[BananaFob]

Originally posted by Weapon_R
If these companies go belly up, their guarantee isn't worth the paper its written on.

Lol i just read a prospectus for one of their investments. This is one of their lines:

No Guaranteed Return
There is no guarantee that an investment in Preferred Shares will earn any positive return or any return at all in the short or long term.

On the positive side, at least they are releasing a prospectus unlike Concrete Equities.

[tpurcell4]

I haven't heard of this company, but I have seen presentations from similar ones. I personally don't trust anything guaranteed at that high of a rate, but if you have a bunch of extra cash to throw at a high risk investment you could give it a shot. Basically what they are doing (at least in theory) is buying undervalued US mortgage bonds for pennies on the dollar.

So you have to ask yourself, do you want to invest in the US mortgage business and do you trust the person selling you the investment?

If you answered no to either of the above questions, keep looking!

[CanmoreOrLess]

Dig around a bit for information on the CEO, look at where he "worked" before his PMIC scam. I would not let this guy rake my lawn. Anytime someone is tangled up in a seedy lawsuit, I takes my money and runs. Looks to me like the entire "family" is a ticking scam bomb for the police and securities authorities to investigate.

[JDMsomething]

Lol, you guys are so naive.

7-11% is totally reasonable, and in fact you could probably get 12%+ in different vehicles if you knew what you were doing.

I have no knowledge or experience in this particular MIC, but proper real estate investors will happily pay that kind of return for borrowing. This guy could be shady, get you to buy into the syndication and take your money. But there are good ones out there who pay handsomely for investing in them, and are not shady.

But anyone who does this can tell you that 7-11% is very very reasonable, even low IMO.

[BananaFob]

Originally posted by JDMsomething
Lol, you guys are so naive.

7-11% is totally reasonable, and in fact you could probably get 12%+ in different vehicles if you knew what you were doing.

I have no knowledge or experience in this particular MIC, but proper real estate investors will happily pay that kind of return for borrowing. This guy could be shady, get you to buy into the syndication and take your money. But there are good ones out there who pay handsomely for investing in them, and are not shady.

But anyone who does this can tell you that 7-11% is very very reasonable, even low IMO.

Naive? I don't think so. I agree, there are plenty of real estate investors who do demand that kind of return on their capital and tons of borrowers that will pay for hard money but to say that it is a RISK FREE and GUARANTEED return is 100% bullshit and misleading. Considering there has been extremely high profile syndication meltdowns within our city alone should make any potential investor extremely nervous with real estate syndicators.

[JRSC00LUDE]

Originally posted by BananaFob


Naive? I don't think so. I agree, there are plenty of real estate investors who do demand that kind of return on their capital and tons of borrowers that will pay for hard money but to say that it is a RISK FREE and GUARANTEED return is 100% bullshit and misleading. Considering there has been extremely high profile syndication meltdowns within our city alone should make any potential investor extremely nervous with real estate syndicators.


This. No one said you can't get a return like that, they said you can't get it risk free.

[Feruk]

My thought is that we will see a decline in the Canadian housing market. From their FAQ, they deal mainly with mortgages in Alberta. On that basis alone, I would be instantly out.

http://www.pmic.ca/faq.php

As well, I don't trust any of these companies that don't show their track record publically on their website. Look at their website... what a joke IMO.

[Hanzo]

A slight clarification: They never promised a guaranteed return of 7-11%. They only guaranteed a no loss policy.

[bspot]

If they are paying 7-11%, plus overhead, it means they are running a severely high risk operation that a traditional lender won't touch.

Ask Concrete Equities holders how their investments are doing.