It’s Your Money > Investment Vehicles

Lending money investment

<< < (2/7) > >>

Steve & Myrlita:

--- Quote from: fred on April 27, 2011, 09:35:55 AM ---Im pretty sure that the issuer of a bouncing check here can be in serious trouble if duly reported or a case filed..

--- End quote ---
I won\'t matter. Nothing will happen to her. A foreigner will never get a conviction on a Filipino. The court would never allow them to lose face to a foreigner. God Bless...


--- Quote from: rdjlazo on April 26, 2011, 05:59:09 PM ---When it comes to lending as a part or full time business
you have to feel what is going on in that investment.
What I am seeing now is wide area of investing such as
1. Lending on vacant  land as mortgage. Most people tell me
they charge 4% and up per month. You should know about land title ins and outs
and real ones and not. Ca be done with little research.

--- End quote ---
Don\'t RP have any law against usury?

Here in Sweden for loans with estate as security 4 % is more suiting PER YEAR...
Some higher interest than that is fair in RP because of
/RP has higher inflation.
/if it\'s only for shorter periods, making it more handling work.
And lack of investment money make it fair to have SOME extra prophit,
BUT 12 x 4 = 48 % interest per year, when there are SECURITY, in my eyes is usury...   >:(

Tempting to go into such business (with a lower interest to be much more fair)
BUT wouldn\'t established loan sharks become dangerously violent, if they get such competition putting them out of business for the secured loans? ...   :)
I was thinking as you are when I got there last August 2011. I am feeling guilty then as now
but talking to people they are telling me 3 to 4 % per month is more common than not.
And lenders are sometime hard to find. Having security like real estate doesn\'t mean
you are secured. There is always a risk but the more you know about risk and how
to prevent and avoid it the better for your business. If I will start a business lending
in real estate nothing more that 200,000 per loan and nothing longer than 6 months
and get a good lawyer to lower your risk. He will explain things to you and you will learn fast.
If 4 % is too usurious for you you can charge 2 or 3 % per month but remember risk. 3 or 4 %
is not all profit because of risk and legal cost sometime.
Look at this way. When you send money by LBC or Western Union they charge close to 2 to 3 %
by just facilitating the transfer of money and no risk what so ever on their part and same day
service not one month. Philippine banks
charge 36% plus annual membership on credit cards. Banks charge merchants 2 to 3 % for merchants for
using credit cards on purchases by card holders. 
Try to learn as much as you can as fast as you can and talk to people specially good
lawyers to feel the market. Best regards,
Is there a usury law? Yes there is but hardly talk about and I don\'t see anybody
being prosecuted on it>

Loan sharks can be violent to eliminate competition?

You can do it in low profile by letting lawyer, relatives or agents handle the negotiation.
You only sign when everything is ready to go. Borrowers or borrowers representative
don\'t have to be there when you sign. Agents commission and lawyers fee can be paid by the
borrowers. Lawyers can verify, check and investigate title and ownership before you see
any document. Good lawyers have good connections in the community to assist in time of needs.
Best regards,

Thank you. I hadn\'t thought of having such business, but if it isn\'t to risky - concerning loan sharks actions - then it perhaps can be a good combination of investment/work income for myself, and assisting people around to get some lower cost capital to improve THEIR businesses.
E g such as
a farmer can afford to keep seeds for planting, instead of first selling when the price is lowest and have to buy seeds expensive when they need them for planting
a \"industry\" producer can buy better equipment so he can produce much faster...

But what\'s good with having only short time loans on estates??
I mean except it\'s normal with higher interests then  :)
Switching borrowers often is much more work checking things, instead of have long time loans and they pay a bit back and interest regular/follow when they get income.

Oh the Spell Check say I didn\'t made any spelling errors !   Sad there are no Grammer Check function too   ;D


[0] Message Index

[#] Next page

[*] Previous page

Go to full version