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Warning: I ignored a "guaranteed 12% return" pitch for 6 months and now I feel dumb for not looking closer
A guy from my old office kept pushing a small real estate fund that promised 12% a year, and I wrote it off as a scam for half a year. When I finally read the paperwork, it turned out to be a legit fund that pools money for rental duplexes around Charlotte, NC, with audited statements and a 3 year lock up. I put in $4,000 in March and got my first check for $118 last week, which lines up with what they said. My only regret is sitting out so long because I assumed anything above 8% had to be fake. Has anyone else put money into a fund like this, and what did you check before saying yes?
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charlie_ellis10d ago
Sat on the sidelines for almost a year on something similar, a fund doing mobile home parks in Ohio, and finally threw in $2,500 after bugging the guy for the tax returns and calling the property manager myself. The thing that sold me was that the audited statements matched what the manager told me on the phone, and the lock up was only 2 years. Got a $61 check the first month and kicked myself for waiting. Lesson learned: do the homework first instead of just assuming a high return means scam.
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