I have been invited by a friend to attend a seminar on investment in German Heritage Building offering mouth watering 12% return in 12 months guaranteed by the developer.
One thing good about the advance in technology is that one can simply google search and get all the information about almost anything under the sun. Of course, some are hidden under the shade.
The developer, Dolphin Capital GmbH with its partners has more than 20 years experience, completing more then 12,000 units successfully, but employed only 40 employees and tie up with over 500 sales agencies. They have recently set up Dolphin Capital Asia to launch German property investments in Asia.
It's a short term investment tenure of 12 months with Principal and Profits Assured in a "Buy-Back" clause by the developer. It's just providing funding for their acquired listed buildings for redevelopment, the property is not owned by investors but by Dolphin. It's more like Ah Long San legally lending money to them.
Why don't they borrow from the bank at a much cheaper interest rate?
Why they don't issue bonds?
What's the risk?
Is this another Ponzi scheme?
The return is high, so is the risk.