Confessions of an Amateur

Discussion in 'Classifieds' started by WASGroup, Feb 23, 2009.

  1. WASGroup


    Good morning! I am not a trader, nor am I even remotely educated in stocks, trading or anything of the like. I'm not even certain if this is the proper forum to be posting but I figured I would give it a shot.

    I have been reading some of the forums for the past couple hours and have come to the realization that I certainly am well over my head. I have been in real estate for some time now and have obviously been forced to diversify and attempt alternative revenue streams.

    With that being said, I have a few questions that I would be eternally greatful to have answered. I understand the replies I get will not all be pleasant and I do appreciate any candor.

    A little background: I have a few investors that are steering away from real estate projects and looking into Medium Term Notes, T-Strips and Private Placement Platforms.

    1. T-Strips. How can they be sold for less than face value? Who takes the loss? I have folks telling me they can sell me gagillion dollars worth of T-Strips for 29 cents on the dollar. My BS meter goes through the roof. Could someone please enlighten me?
    2. Medium Term Notes. Ok, so a bank is selling a performing note pool. I can grasp that much. I have a trader in Chicago I speak with on occassion that tells me these things are very real and my investors can buy them around the mid 60s. He then tells me I can sell those notes again to pension funds in the 80s. He's talking about 50 billion (yes billion as in Bill Gates billion) dollar contracts. My simple math says the profit is 10B. He only needs 500M to start trading them. Again, my BS meter is going off.
    3. Lastly PPP. I'm being told if my investor just puts 100M with this trader that the trader can give me a 65% return WEEKLY for 40 weeks. If that's true, why isn't everyone on earth a multi billionaire by now?

    I'm sure you can sense my frustration by now. I have investors with real money that trust me implicitly, but I can't for the life of me feel comfortable placing them with these type of investments. I have a client that just activated his credit line and is expecting me to drop him into a private placement platform with his 100M. I'm physically sick to my stomach wondering if I am doing the right thing. Someone please share your thoughts and tell me point blank if I should pull the plug.
  2. how did someone as wishy-washy as you ever get investors to trust them??? Based on your self description, I would not let my money get anywhere near you...
  3. If you wish to keep your credibility then stay away from anything and everything beyond your expertise.

    Understanding the math and the mechanics of a concept is one thing but real world execution and actual profit potential is something completely different.

    Every single one of the three questions you have posted are pie-in-the-sky amateur dreams and are not possible in reality: the blind leading the blind.

    Realized returns for any investment are only possible if/when circumstances are favorable for that particular type of venture. When times are not favorable, staying in cash is the only winning strategy.
  4. WASGroup


    Thank you kindly for your replies.

    As far as my investors trusting me, I can only say that we have made money in the past together and our families vacation together. I was simply trying to be humble entering your domain and not try to put on a facade that I somehow knew more than I did.

    Again, I appreciate your feedback and will look for some other investing ideas. Our normal real estate ventures are far and few and I kept hearing about these fabulous returns. I guess the old saying goes, "if it sounds too good, it probably is."

    Best wishes.
  5. soseki


    Hi WASGroup,

    your BS meter is right. None of the posted scenarios are possible in reality. Don't trust anyone who claims he can make you such high returns in a short time.

    Furthermore, good people to invest with don't advertise themselves too hard, and usually YOU have to actively look for them. Meaning it's necessary to do further research in the area you want to invest into.