If it’s too good to be true

[Chris Seveney]

I posted about the head scratching returns this company was offering in the past as they were alleging 10% per quarter - yep that’s 40% annualized and they would let it compound

$300M raised - why? Because people fall in love with returns and do not ask how is that possible…

Of course investigation is ongoing but this is all alleged.

https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26076

[Scott Trench]

I think that the red flag for me is when a syndicator who has no/few exits starts living it up. 

Syndicators who brag about their instagram lifestyles without a big old pile of exits... probably bought that lifestyle with their investor's money, whether Ponzi scheme or exorbitant acquisition/management fees.

That... or selling high ticket coaching items on the power of real estate.