A friend offer me a investment opportunity at 15% annually, is it too good to be true ?

He was my coworker. I know him at work for years. It is unlikely he take money and run away.

He ask me a loan to scale up his business, promised to pay 15% annually.

His work is in manufactures industry, maybe B2B. He said he his business don’t depend on number of customer available. I don’t know. I am a salary man. I know nothing about business and investment.

I haven’t ask him into the detail yet. I know nothing about this type of business. He seem confident, but I feel the 15% is so unlikely that will come with (hidden) risk. Maybe my friend is also a victim of another scam, or he just overconfident.

People of Lemmy, I ask you, those who are investor and business owner: is >= 15% annually ROI possible ?

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hahattpro,

i dont know, but if you are scammed, don’t get scam again.

bradorsomething,

Unless this is drugs, with the potential of you going to prison, the return is too high. Don’t do this, drugs or no.

Jackmark,

Hey everyone, am earning comfortable from home with just a little capital message lizzi Walterfx on Inst-ag-ram

hahattpro,

Messaged Check your Telegram inbox

SHITPOSTING_ACCOUNT,

Not too good to be true, but too good to be low risk.

15% ROI is definitely possible. Him screwing up and ending up bankrupt is also possible.

The red flag for me is “I know nothing about business” - you can’t judge the risks. You should absolutely not invest money you can’t afford to lose into risky stuff like this. In particular, taking out a loan just to loan the money to your friend would be a really stupid idea, and if he asked you to do that, he either is stupid, reckless, or doesn’t care if you get hurt.

I’d only consider loaning my own money with which I can afford taking the risk, and only if he could plausibly explain what he’s doing, and I felt like I can understand it and be confident that he can pull it off. I’d consider it a high risk investment on par with cryptocurrencies.

Given that you don’t seem to fully understand and there are other red flags: stay away.

mysoulishome,
@mysoulishome@lemmy.world avatar

If they had convincing evidence that they could produce 15% return with low risk, investors would be beating down their door.

ShroOmeric,

It’s a scam, or he really believes it and it’s even worse.

hahattpro,

I think I should pull him out of this for his own good.

Whoresradish,

It is probably a scam, but maybe not. Ask him to explain the business plan to you and show you the numbers. If he is unwilling it is definitely a scam.

LUHG_HANI,
@LUHG_HANI@lemmy.world avatar

Don’t be a fool OP. He’s either involved in a scam by his own foolishness and doesn’t know it or he’s the scam.

AlmightySnoo, (edited )

When it’s 50% more than the historical yearly average return of the S&P 500, you’re right to be concerned.

I don’t know. I am a salary man. I know nothing about business and investment.

I’ll join the “don’t” crowd then but will also suggest that you should urgently get some financial literacy to avoid “scams” like these. If you really want to invest money into something, your best bet would be an index fund or an ETF tracking an index like the S&P 500 which historically returned on average (very important to highlight the “on average”, because not only does it mean that it can be less but it also means it should be a long-term investment for the law of large numbers to be in your favor, not mentioning that holding for long periods has tax advantages depending on where you live) 10.15% per year since 1957: investopedia.com/…/what-average-annual-return-sp-…

Avoid stock picking, options, cryptos etc… (unless you really, really know what you’re doing) and instead trust when people like Warren Buffett tell you to look at index funds or index ETFs instead and to let compounding do its magic over the years: cnbc.com/…/billionaire-warren-buffett-swears-by-t…

I’d suggest you buy a book like “The Psychology of Money” by Morgan Housel (very good one) and to read it before you make any investment decisions.

hahattpro,

thank bro,

kSPvhmTOlwvMd7Y7E,

I don’t need further details to assert “stay away from that ‘opportunity’”

TootSweet,

Stay away. There is a 0% chance this will end up working out positively. If he brings it up again after you refuse, set hard boundaries that you don’t want to talk about it and you won’t entertain any further financial offers or advice. If that risks damaging your friendship then it’s a “friendship” that needs damaging.

Sorry to hear your friend’s gotten sucked into some investment cult.

retrieval4558,

85% chance it’s an MLM, 14.9% it’s another dumb business idea and you won’t see that money again regardless.

roguetrick,

You're not a bank, the details don't matter. Don't even bother with getting anything in writing from someone who is over leveraged, because you're already never getting that money back in any court regardless since the other creditors come first.

FartsWithAnAccent,
@FartsWithAnAccent@lemmy.world avatar

sus

redballooon, (edited )
  • Ex coworker
  • Seemingly Great roi.

That smells like a pyramid scheme from miles away.

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