Anyone heard of Jeff Brown angel investor ?

A retiree friend wanting to get more than zero interest on his super capital. He’s looking into options for better returns. I’m a little concerned he’ll be taken advantage of.

Anyone knows about/invested with:
- Teeka Tiwari?
- Jeff Brown? “ is the primary founder of Brownstone Research and serves as their Chief Investment Analyst. Brown is also the chief editor of The Near Future Report, Exponential Tech Investor, and Early Stage Trader. Brown is known as a high-technology executive with more than 25 years of experience in one of the most rapidly changing industries in the last 50 years.“
- another group in QLD investing in 5G technology

thanks.

 

They're some good returns. Tempted to take my cash out of my offset and buy into that.

 

None of which are capital guaranteed, covered by the Govt scheme to insure deposits etc They are all unsecured despite the apparent portrayal of a "mortgage". Many "mortgage funds" misrepresent what is otherwise a high risk unsecured investment that is often dressed up to pay "interest" regularly. Interest is generally a return paid for use of money and is based ona premise of the return of the original capital at the expiry of an agreed short to medium term or at call.

Sadly with record low returns for safe and secure deposits (risk free) many are chasing significantly enhanced risk.

eg Australian Secure Capital Fund describes their risk as simply as can be made possible. The fund name seems quite misleading doesnt it ?
The performance of the Funds, the repayment of capital or of any particular rate of return, is not guaranteed by the Responsible Entity, its directors or associates. Mortgage investment, by its nature, carries a level of risk and no guarantee is or can be given that an investment in a Fund will not decrease in value and that Investors will not suffer losses.

The investment is risk is explained as Investment Risk - Australian Secure Capital Fund
The investment is in units in a trust and the return is a distribution. The capacity of the fund to pay a return may also be a risk. Obtaining capital on demand through redemption is also a risk. Many mortgage backed funds have suspended and frozen redemptions in the past. Some in the GFC on paid out the final amounts in recent times. And would likely also suspend distributions. Examples :

• https://www.smh.com.au/business/cba-freezes-mortgage-fund-20100113-m705.html
  
  
• https://www.moneymanagement.com.au/features/editorial/its-time-investors-face-truth-about-frozen-funds
  
  
• https://www.sbs.com.au/news/aussie-mortgage-fund-39-set-to-freeze-redemptions-39
  
  
• https://asic.gov.au/about-asic/media-centre/key-matters/information-for-investors-in-frozen-funds/
  

 

If the fund holds a first mortgage on the property they are lending against, then are they not secured against that asset?

 

The FUND might hold a mortgage on the assets. But the INVESTORS would be unsecured creditors of the fund.

 

So the fund holds the security and you have a share / unit in the trust. That’s not exactly the same as an unsecured loan though. Are we saying that the fund could collect against the asset but not pay the fund unit holders?
I am sure there are cowboy operators out there that would pull one over investors. That’s why I stick with the big reputable players. I invest in individual mortgage funds with Australian Unity. Can’t see Australian Unity playing such games.

 

Given that the investments have terms, they seem to be debt?

Not saying there's anything dodgy about this. Just that it's not the same risk profile as a government guaranteed offset.

 

Yeah 100%. Not even close to money in the bank.
I do like mortgage syndicates as an investment class. But it’s definitely an investment that you want to make sure your doing your homework on. Not all managers are equal. I have looked at a number of different players and some come across like used car dealerships. And not the factory brand backed used car dealerships.

 

Apparently it’s a case of , investors put in $$ for one year against a first mortgage (in this case, a $5 mi apartment in Sydney’s E suburbs), which the buyer pays 11% interest for the loan. Investors get 7% paid monthly. After one year they get their full capital back.

1. what type of buyer would pay 11% in this market with banks charging only 2-3% interest?
2. I wonder what protections for the investor??

 

Yeah i have to agree. Some of the interest rates they are charging are insane. I saw rates of up to 30% on their website on some syndicates. Why on earth anyone would pay such rates? Second if they are charging such high rates, then as an investor I would want a lot more than the measly 7% they are paying.
I personally wouldn’t touch such syndicates.

 

“PROJECT XI”

 

Thankfully ASIC doesnt agree with you.

Also interesting that ASCF was given a clean bill of advertising health in ASIC's April review of Managed Funds and their promotional advertising of FInancial Products.