Urban Village Capital

I cant work out how they could afford to pay me 10% for my money, has any one ever looked at Urban Village Capital?

Comments


  • Justanotherlightly disguisedadvert
  • I understand your cynicism, however I thought this might be the place to get some sort of an opinion and I am not sure how I could have approached it without arousing the type of suspicion you might have. So this is most probably my first and last attempt to seek out an opinion from a blog.
  • We look for red flags on investments, something paying 10% is a big red flag, that would put me off. I also invest in investments that are tradable, ie listed on a stock exchange. Good luck with your investment, anyone who invests with a promsied return of 10%pa will need a lot of luck, to avoid a loss.
  • Have a look at their accounts at Companies House - should tell you everything you need to know.
  • I would suggest the following. The question you might have in the back of your mind is why aren't they borrowing from a bank at 9% rather than retail invstors at 10%.

    For clarity I have done no research.

    Either it's 10% because it's a straight scam. A check at companies house will help with this. If they've been in existence for 10 years that would suggest the likelyhood of them continuing to be in business in 2 years time is much higher than if they've only been in business for say 2 years.

    Another possibility is that none of the banks or challenger banks or other lenders want the business because it's construction/development and they will be exposed in any downturn. So, what has become more popular over the last 2 years is that rather than the bank lending the whole lot at 9%, they instead lend them say 75% at 8% on the condition that the borrower gets the rest elsewhere but the bank has first security of 100% of the assets. So, what we see is a borrower then going to the retail market at 10% but the retail investors don't always appreciate/understand/bother to read the literature that they are subordinated to the bank and if things go wrong they will lose 100% before the bank starts losing anything.

    To further complicate this, up until 6 months ago, borrowers could go crowdfunding at low rates for the top-up but that market has significantly dried up.


    In terms of replies on here, I doubt you will get anything specific back. Most of the investors on here from what I've seen are looking for returns of 3-7% which is somewhere between safe and bit a bit racy. 10% would put up red flags for all of us. That's not to say some investors on here won't punt a few things over 10%, Wasps bond for example, but we all know there is considerable risk involved and things could go wrong.

    Companies House is defintely the best place to start.
  • I'm not sure how it got started but I've had some correspondence and phone calls with Charlie Kent at Stable Rise with regard to Urban Village. There are a myriad companies involved, most of which have zero balance sheet, yet they claim there is a fixed and floating charge over assets in excess of the £10m they are raising. Nowhere in the gloriously illustrated and excessively wordy literature can I see any direct link between the money I am lending (to a company with, literally £100 net equity and no trading) and real assets. I keep asking questions (basically the same one over again "how is my loan secured") and seeing where it will go.

    Smells like a scam to me, but I have not come across this type of investment vehicle before so I may be wrong.
  • well if it looks too good to be true !!!!
  • totally agree with Colin.
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