Looking to invest in a few different P2P lending companies for Business or Real Estate. Question I have is around due diligence before investing / pouring some cash into these companies. At this stage I do the following however open to ideas. 1) Ring their landline and ensure people answer the phone. 2) Ask them a bunch of questions including previous audit and copy of report, track record, failures, etc... 3) Request a PDS 4) Check they are registered with ASIC Anything else once should be asking / checking ? Thanks so much !
What rate of interest are they paying? Is it secured by 2nd mortgages on resi real estate? Is it mezzanine finance for developers?
I guess it is a risk - reward equation. If I was lending at 15% I would probably not be surprised to be waving good-bye to my investment capital. (sounds too high when 'good' borrowers can get 4-5% from traditional sources). But if you're only risking 10% of your own nett worth and like a side play.......go for it. Personally, I'll be keeping my wallet shut
I am trying to understand more about questions to ask the company in regards to how they conduct their business / where they hold their money/ who is the trustee, etc..... I am fine with risk/reward situation.
