Is there enough interest in real world lending for 15%- 20% ?

[bixcoin]

Hi,

I am a German guy living in the south of Brazil for 8 years now, my main business is in real estate. I have recently bought a piece of land, divided it in lots, built a house and sold the house and some lots. Also I have build another house which is for sale now.
I am currently looking for a bigger stretch of land for reinvesting. The highest returns on the market would be by building a condo, but I do not have the funds to do so. I guess it also would be to big to start with a hughe project like this for Bitcoin funding.
So I am thinking about a test project on GLBSE. From time to time I get offers of small lots below market value. Right now, I have an offer of a small lot in the city of Florianopolis for about 40.000USD. I evaluated it with at least 60.000USD. What I would like to do is to seek investors on GLBSE until a certain date. On the day, I make up for the missing investment and buy the land. I then pull the marketing strings and hopefully sell it within a year for 60.000USD. Considering transaction fees, burocracy, agent fee, marketing costs and my (small) cut, the return will be around 20%. I think it wouldn't even take a year to sell it, but we could combine a maximum timerange after which the price will be set down to 55.000USD or even a guarantee that I will buy it after, lets say 18 months, if we cant sell it otherwise (of course that guarantee would lower the return).

I can provide all prove of identity that GLBSE asks for, but I actually think thats not enough for serious investors.
So on top of that, I can personally provide my notarized ID, documents of the real estate I own (in case I give a guaranty), proof of adress and other proofs suggested in the "how to request a loan" thread. To avoid identity theft, we would have to involve a third party (notary?) for checking sensible documents.
 I can not provide OTC Rating (which IMO is not worth a thing -> pirate) and not proof many transactions. The only thing I can think about to proove my online reputation is my ebay account, which is about 12 years old and  has no negative feedback.
Anyway, since we are talking about real world investment, I think its more important that I have all the real world documents and I can provide those in any way.

So why don't I just start but tell you all this instead?
To do that kind of business, I would create an official company with all the brazilian burocracy involved. That is necessary and also another security for investors. I would also have to check with an experienced lawyer if I could get any problems with the officials because of money laundering laws. This means huge financial and timely effort, which is not even worth it for a small project like this, but I would do it looking forward to bigger projects after the test goes well.

So if any of you would be interested in this kind of investment, please tell me your thoughts about that.
I would also like to know if potential investors would be interested in a 100% guarantee resulting in lower returns (I stand in with my own property to guarantee the minimum return) or prefer a low to mid risk in exchange for highest returns (or anything in between).


Thanks in advance for helping me. I hope this kind of business can get the BC economy to some more serious level.

[1714877369]

1714877369

[1714877369]

1714877369

[ElectricMucus]

cool story bro




















NO

[bixcoin]

cool story bro
NO

Considering your ironic statement and your avatar text, you probably think this is a scam.
This is rather sad because it implies that even suggesting to handle out all possible proof and gurantees you think there is no interest in this kind of lending. I guess there is no interest in lending at all then or can you tell me what exactly is wrong with this model?
Or do you think there is no and should not be a BC economy?

[chrisrico]

cool story bro
NO

Considering your ironic statement and your avatar text, you probably think this is a scam.
This is rather sad because it implies that even suggesting to handle out all possible proof and gurantees you think there is no interest in this kind of lending. I guess there is no interest in lending at all then or can you tell me what exactly is wrong with this model?
Or do you think there is no and should not be a BC economy?

Don't pay too much attention to him.

I think that if you were to provide solid evidence of your identity and ability to fulfill your contractual obligations, you will find investors in this community who will be interested whether or not you are an officially licensed government certified business.

[P4man]

what are you going to do if BTC value doubles or triples?

[ElectricMucus]

provide solid evidence of your identity and ability to fulfill your contractual obligations

don't do it

[bixcoin]

what are you going to do if BTC value doubles or triples?

Interest and payback itself would not be paid in BTC but converted from USD, EUR or BRL.
BTC would just be used to make transfer and handling easier. Of course, for speculaters its more interesting to invest in raising BTC, but thats it, speculation. BC can also take a rally down to 2$ as it did before. Such a volatile currency is not good for any middle and long term business. 20% profit are nothing compared to the value change BC can take in a year (in any direction).
I have about 3% of my net worth invested in BC. If I would be so sure, BC is going up at least 20% the next year, I would be invested at least 50% and not doing a lot of other things. I am just not.

[chrisrico]

If I would be so sure, BC is going up at least 20% the next year, I would be invested at least 50% and not doing a lot of other things. I am just not.

20% of $11 is only $2.20. I feel pretty confident that Bitcoin will be trading above $13.20 in the next year. Hmm...

Perhaps you could purchase an option to buy as many bitcoin as you would need to pay back your loan. That would cut into your profit margin but it would provide security against currency risk.

[Gerco]

It would depend in what currency the debt would be denominated. If the debt your business incurs is denominated in an inflationary currency, interest would be limited, I should think.

If you denominate the debt in BRL, for example, and if I don't trust BRL I would not be very likely to invest. If the debt would be in USD, I would be more/less likely to invest depending on whether I trust USD, etc.

Further more, an asset on GLBSE is held in BTC and traded in BTC. If the underlying debt is not in BTC, how would that work and how would dividends be calculated?

[bixcoin]

If I would be so sure, BC is going up at least 20% the next year, I would be invested at least 50% and not doing a lot of other things. I am just not.

20% of $11 is only $2.20. I feel pretty confident that Bitcoin will be trading above $13.20 in the next year. Hmm...

Perhaps you could purchase an option to buy as many bitcoin as you would need to pay back your loan. That would cut into your profit margin but it would provide security against currency risk.

Pretty confident is not enough. I also felt pretty confident that I would make a huge profit when I bought my first bitcoins for 9$ to 12$ about 15 months ago just to see my money almost gone shortly after. Its just speculation. And this is different from calculated profit.

[bixcoin]

It would depend in what currency the debt would be denominated. If the debt your business incurs is denominated in an inflationary currency, interest would be limited, I should think.

If you denominate the debt in BRL, for example, and if I don't trust BRL I would not be very likely to invest. If the debt would be in USD, I would be more/less likely to invest depending on whether I trust USD, etc.

Further more, an asset on GLBSE is held in BTC and traded in BTC. If the underlying debt is not in BTC, how would that work and how would dividends be calculated?

You are right. It would make sense to use the currency most investors use to do their daily shopping, probably the USD.
I am not yet totally familiar with how GLBSE works on the project creators side. But I guess you can just calculate net worth in USD against the current BC/USD price. Dividend would only be paid out when finalizing the deal and also has to be calculated back to BC.

I can see that many or most people here see the Bitcoin price just going up in the future and again, 20% profit a year does not combine with such a volatile currency. This investment offer is rather a traditional one, using the Bitcoin just as a tool and not as investment itself.
Profit margin but also risk is much lower. Given that investors can feel safe that this is not a scam a 20% is considered a very profitable return.

[Fjordbit]

I would seriously advise against this as the country you are in is the only country so far to go after Bitcoin entrepreneurs trying to dodge the regulatory system:

http://www.bitcoinmoney.com/post/28048708075/brazil-bitcoin-securities

[bixcoin]

I would seriously advise against this as the country you are in is the only country so far to go after Bitcoin entrepreneurs trying to dodge the regulatory system:

http://www.bitcoinmoney.com/post/28048708075/brazil-bitcoin-securities

Thanks for the heads up. I will have a closer look on that.

[ThiagoCMC]

I would seriously advise against this as the country you are in is the only country so far to go after Bitcoin entrepreneurs trying to dodge the regulatory system:

http://www.bitcoinmoney.com/post/28048708075/brazil-bitcoin-securities

I live in Brazil, Sao Paulo... Lets drink a beer!

Here in Brazil, you just can't announce Investment Groups in Portuguese. But you can run it in English... LOL

[bixcoin]

yes, that's the country!