Investing in Real estate, question

Hello … I’d like to ask if we have here anyone who could help me in something which I came across yesterday.

I got an offer to invest a minimum 22.500US for 10 years with 5% guaranteed annual return. That 5% can even be up to 12+, but let’s talk about 5 just now.

Your opinion. If I invest now let’s say 100.000US, I can get the first 3 years guaranteed return (3x5000US) paid immediately, and all possible over that as normal yearly payout.

Company is 6 years old, based of Dubai, and operating today in several countries as Russia, Thailand, China and Africa continent. 2009 turnover was around 2,4 billion US and the assets near by 4,5 billion US in May 2010.

The company is so called ‘buy to let’, which means they are buying high quality hotels, resorts etc. and renting them out to their customers world wide.

Please give me a hint if you see that could be something, or if you feel there are no reason to step in.

bw. there is something that I start to think about … walking to the bank and take the loan for 10 years with 3% tied interest rate, you could make 2% annually return putting in no one sent your own money. Am I right?

Please don’t step on my writing as I’m not origin from English speaking country :slight_smile:

I may not be here for long, so please send me an email. Address is in my profile, thank you.

Sounds like a REIT investment. The ROI is shatty in my opinion. You can do much better being a private lender in your local area, lending to rehabbers…plus these are properties you can see and touch.

By the way, do you happen to live in the DC metro area? :biggrin I typically borrow money from private individuals to buy and fix up our houses. In return, I pay these private investors between 9% and 15% interest per year. Your investment is secured by the real estate.

I agree with nsu1997. Being a private money lender is a better value, you can actually look the person in the eyes and if they don’t perform take the house that is securing the loan and sell it.