Investment units?

[newguy]

Was just in Calgary.Visited with a person that said they were aproached by someone selling crop units in the irigated Defienbaker area.The person selling was saying a 35% return.Sounded real sketchy to me.Someone preying on oil guys looking for other investments?

[tstep]

Holy fk. A 35% return????

[iceman]

The sellers first name rhyme with Dark?

[LEP]

Actually heard heard they were growing marijuana in anticipation of the changes under the liberals.

[biglentil]

Irrigated crops of like?

[bucket]

The old pig barn is growing pot.

That started under harper.

[newguy]

It was crop units.They were putting on meetings etc.Was mentioned peas and beans.I told the guy there is so many variables when growing and selling a crop it sounds very high risk at the best.

[Klause]

Investor gives you 100 per acre. You give him $35 back at the end of the year, and then he has the option to leave the 100 with you for another year, and you pay him 35 more, or he pulls his capital out again.


It's pretty simple... 2 groups here doing it too.

[farmaholic]

Who the **** here likes paying 35% interest on a loan that can be called yearly? No one is dumb enough to do this, is there? This is kinda like loan sharking..... what kind of security do I get for the $100.00/acre deposit? I may be interested in this deal.

I call absolute BULLSHIT!!!!

[tstep]

Having a difficult understanding that deal Krause

[sumdumguy]

If it sounds too good to be true then it likely is. I like 2%. Lol

[Oliver88]

Sounds like a Input Capital type of agreement.

If I understand it it is an operating line of credit at a ridiculous rate. 35%. ??

[iceman]

35% ??? A green bill, purple bill and a blue bill? For the renting of a brown bill?

I what a piece of that action.

[riders2010]

It's based on the model of the input companies pretty much except when you spell it out like this
We all say holy crap that's loan sharkiing.
Just a few years ago no interest until
Fall but if your late you hit the 26% and in farming
It happens but those rates of interest where loan sharing and are now even more at the current bank rate.

[Klause]

Here, I'll explain the way they pitch it.

300 per acre expenses, investor buys 1 unit = 100 or 33% of the expense.

(this is for canola).

Now, at 40bu/acre * 10 bucks a bu = 400.

Investor had a right on 33% of the profit, (based on covering a 3rd of the expense)

400 - 300 = 100 *.33 = 33 bucks/acre return on investment.