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  1. #1
    Senior Member Reputation points: 20458 Fundyman's Avatar
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    $1 Million Investor Needed w/ Admin-Locked Funds in Bank To Be Used As POF?

    I have a request for $1 million in capital, mainly for the purpose of proof of funds:

    Money is to stay in the joint account (investor + borrower account) with an admin lock on it, placed by you (the investor) for up to about 10 months, while the borrower uses the bank statements as proof of funds to obtain contracts for jobs, valued at over $5 million total.

    Borrower won't have access to the funds, as they are obviously locked! (I may be missing a huge factor, but I have no clue; just throwing it out there). To me, it's no different than folks using POF letters to acquire real estate, except this guy is using it for his gold mines to obtain digging contracts or what not...

    What happens is that basically, every week upon obtaining the 1st contract, the borrower will pay you a set payment ($10-15,000) until they have achieved the desired amount of contracts, or until those 10 months are up, after which you take back you total initial capital placed in the account (By common sense, you can literally make 100% ROI with this type of transaction @ $25,000/wk; however, I have never been able to verify whether this method is legit, what FTC regulations may be in play, etc..)

    Technically, you can make an easy 50-100% return on your money over the course of those 10 months. You can structure it even as a cash advance w/ weekly payments on a 1.59 or whatever, & that be the agreement. The collateral is obvious, as it's your own money, and none of it goes anywhere. If the borrower stops paying or pays late too many times? Hell... You take your money out! lol

    What do you think? Am I missing something? Is this common to some of you? I have a borrower requesting this type of financing: POF financing. lol

  2. #2
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    Quote Originally Posted by Fundyman View Post
    I have a request for $1 million in capital, mainly for the purpose of proof of funds:

    Money is to stay in the joint account (investor + borrower account) with an admin lock on it, placed by you (the investor) for up to about 10 months, while the borrower uses the bank statements as proof of funds to obtain contracts for jobs, valued at over $5 million total.

    Borrower won't have access to the funds, as they are obviously locked! (I may be missing a huge factor, but I have no clue; just throwing it out there). To me, it's no different than folks using POF letters to acquire real estate, except this guy is using it for his gold mines to obtain digging contracts or what not...

    What happens is that basically, every week upon obtaining the 1st contract, the borrower will pay you a set payment ($10-15,000) until they have achieved the desired amount of contracts, or until those 10 months are up, after which you take back you total initial capital placed in the account (By common sense, you can literally make 100% ROI with this type of transaction @ $25,000/wk; however, I have never been able to verify whether this method is legit, what FTC regulations may be in play, etc..)

    Technically, you can make an easy 50-100% return on your money over the course of those 10 months. You can structure it even as a cash advance w/ weekly payments on a 1.59 or whatever, & that be the agreement. The collateral is obvious, as it's your own money, and none of it goes anywhere. If the borrower stops paying or pays late too many times? Hell... You take your money out! lol

    What do you think? Am I missing something? Is this common to some of you? I have a borrower requesting this type of financing: POF financing. lol
    Sounds like bank fraud and contract fraud all in the same deal.
    Hedley Lamarr......That's Hedley

  3. #3
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    Sounds like a deal for Mantis

  4. #4
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    Quote Originally Posted by Mynameisbob View Post
    Sounds like a deal for Mantis
    Lol mantis all day on this one

  5. #5
    Senior Member Reputation points: 20458 Fundyman's Avatar
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    Quote Originally Posted by Kevin Henry-Seacoast View Post
    Sounds like bank fraud and contract fraud all in the same deal.
    I mean, it seems a bit far fetched to call it all fraud. I wonder if someone were to put up the money, whether there is a way they could ever lose it. I would have to check with a corporate attorney on that one...

    I just feel as though if some authorities were to get a hold of what happened and the method by which the borrower was able to get the contracts, perhaps they would be subject to a fine. However, the contracts obtained would be for work, which would ACTUALLY be performed, and for which the borrower would get paid in order to then make the payments back to the investor.

    I guess it's all just too complicated.. lol

  6. #6
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    Quote Originally Posted by Fundyman View Post
    I mean, it seems a bit far fetched to call it all fraud. I wonder if someone were to put up the money, whether there is a way they could ever lose it. I would have to check with a corporate attorney on that one...

    I just feel as though if some authorities were to get a hold of what happened and the method by which the borrower was able to get the contracts, perhaps they would be subject to a fine. However, the contracts obtained would be for work, which would ACTUALLY be performed, and for which the borrower would get paid in order to then make the payments back to the investor.

    I guess it's all just too complicated.. lol
    It's not complicated at all. It could and would be considered contract fraud and bank fraud. It's alarming that you don't see the issues....
    Hedley Lamarr......That's Hedley

  7. #7
    Senior Member Reputation points: 43599 brokerCompany's Avatar
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    kevin is a banker with limited mind set. I have seen guys do POF. but never have done one myself

  8. #8
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    Quote Originally Posted by brokerCompany View Post
    kevin is a banker with limited mind set. I have seen guys do POF. but never have done one myself
    Limited mindset???? And I am NOT a banker... How about YOU understand bank and contract fraud.......
    Hedley Lamarr......That's Hedley

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