How will this investment make money? (Dividends? Interest? Capital gains?)
Specifically, what must happen for this investment to increase in value?
(For example, increase in interest rates, real estate values, or market share?)
What are the total fees to purchase, maintain, and sell this investment?
Are there ways that I can reduce or avoid some of the fees that I’ll pay, such as purchasing the investment directly?
After all the fees are paid, how much does this investment have to increase in value before I break even?
How liquid is this investment?
How easy would it be to sell if I needed my money right away?
What are the specific risks associated with this investment?
What is the maximum I could lose? (For example, what will be the effect of changing interest rates, economic recession, high competition, or stock market ups and downs?)
How long has the operation been in business?
Is its management experienced?
Has management been successful in the past?
Have they ever made money for investors before?
Is the venture making money?
How are they doing compared to their competitors?
Where can I get more information about this investment?
Can I get the latest reports filed by the company with the SEC: a prospectus or offering circular, or the latest annual report and financial statements?
See this as a loan. You give me X and I return you X + 0.02X after one month.
Thanks.
