Complete US Social Housing Bond 3-5 Yr. 14% Guaranteed

[Annette Hibbler]

This should appeal to a great many investors looking for a guaranteed returns. We have partnered up with a company based in England, offering investors worldwide a real-estate investment bond with guaranteed returns of 14%. These bonds are backed by real estate in Chicago. Working in conjunction with the Department of Housing & Urban Development they acquired and managed over $30M of property.

The focus is on multi-unit dwellings which contain between two to four apartments. All properties are bought direct from US banks or via Foreclosure sales and are refurbished to a high standard, which includes new kitchens, bathrooms, windows and wooden floors.

Yields achieved are sufficient to deliver the necessary dividend returns to the Bond investors whilst allowing the company to continue to grow.

The initial strategy is to help re-house 2,000 families in Chicago. Rentals fall under Section 8 housing inspection and requirements.

Read more about this type of investment opportunity. Contact for more information.

[Dion DePaoli]

@Annette Hibbler

Any misleading I may or may not have are derived from the material on the website of Colonial Capital. Anyone can follow this LINK to the website and bring up the brochure on the right side of the page and find what I found. In the brochure the specific example and language (text) is used.

It so happens I am fairly familiar with pooled investments. It also so happens I am familiar with pooled investment strategies that may qualify for tax exemption under Portfolio Tax Exemption law. It also so happens and related there to I have some understandings of requirements set forth by FINRA and SEC.

The first, a bond is a security. Securities require registration and license in order to be sold to the public. That is a US law. So the origin of the company does not create exemption from registering the company nor is exempt from requiring it's bonds be sold through a licensed professional. For you to sell a person into this program you would need a license issued by FINRA of Series 7 or higher. I am guessing you don't have one. I did look on FINRA and the company issuing is not registered. I will admit, my the post I assumed you don't a license since a licensed bond trader would not post what you did nor in the manner you did.

Now I hate to be a bit of a jerk, but you don't seem to know much of what you are talking about or doing regarding this solicitation nor your response to my post.

Any foreign investment, is subject to specific tax with holdings within the United States. The treaties, specifically define allowable investments but do not create any tax exemption. For UK, the withholding would be 30% for US sourced income. There are indeed ways for a UK investor to reclaim or credit withholding taxes paid, but again that is not the same as tax exempt and it is for the sake of taxation within their country not here in the US.

Further, a foreign investor raising funds from US residents where the money moves offshore (to the UK) and then back to the US (Chicago) where money is made is actually creating an excessive tax burden or at the least excessive tax administrative burden to obtain the proper tax rate for the US based investor.

The exact text from their material of "No need to register or pay US taxes" is not misleading it is completely and unconditionally wrong. It is hard for me to imagine a firm which could miss such a problem statement. Further, the same company has seemingly given you some type of initiative to offer this program for sale, a person with no license to actually sell.

If you follow the link you published, it has an astounding statement too:
"Properties purchased are refurbished to HUD standard. Typically, properties will increase in value by up to 150% once out of foreclosure and fully refurbished."

Really?? 150% appreciation??? That is a load of crap. I don't even want to address it further than that.

I also glanced at the example under "Property Example". Honestly, that entire post is a lie.

That property was foreclosed and reverted to JP Morgan Chase on 7/13/12. JP Morgan sold it to BLASHILL NICHOLAS and PATTERSON MICHAEL on 9/18/12 for $46,000. Those two guys, who doubled THEIR money sold it to REFLECTION PROP US LP on 11/16/12 for $94,500.

The website says this about the same property:
Purchased September 2012
Price $ 49,000
Refurb costs $19,000
Total Cost $ 68,000
Annual Rental Yield $ 32,400 (49%)
Sold October 2012 $103,000

It appears that not one bit of information in the website post, which is supposed to be a live example of this Colonial Capital investment strategy is true in even the remote sense. I will give them credit, they got close on the purchase price but were still off by 7%.

Well, I think this speaks to the other points I have already made. This firm is a complete scam. You seem to be blindly supporting them, likely under the idea that somehow from all of this you get paid. I can understand perhaps they have duped you into believing the story and sales pitch.

At this point, anyone can duplicate what I have done in research and verify the information. Clearly, I have actually put the time in to disprove the post and back up my original statements. I recommend you do the same and get yourself out of harm's way before it shows up at your door. If you "sell" this program to someone and they are harmed financially, that can and likely will implicate you into the scheme. That said, I am not giving you any legal advise, do as you wish. I would touch this investment with a pole that could reach the UK if I had one.

Good Luck.