Ask Paul: Can we loan out $3.5 million through Facebook?
Q. Is there anything stopping us (legally) from advertising via social media the offer of short-term bridging loans secured by a first mortgage?
It could be through our company or as individuals.
This is to invest an inheritance of around $3.5 million. - Cathy
A. Now this is interesting. I can say with confidence I have not been asked this in many decades of answering questions.
I suspect you would need some sort of broking licence.
I could find out quickly but I don't plan to as I reckon this is a really, really bad idea.
To me it looks like a great way to turn a large fortune into a small one.
Cathy, given your question I assume you know nothing about this area. And it is full of more traps and alligators than a swamp.
I reckon you will have every crook and rogue in town contact you with false documents and dodgy valuations. Your money will be gone in a flash.
If you want to put a small part of your money in peer-to-peer loans, talk to the leading companies in this area.
They can manage the risks and loans. Yes, they will take a clip but that is better than losing your $3.5 million, which I believe you will.
With the rest, please protect your good fortune and make sensible decisions. This could be shares, property and particularly super.
Sorry to sound so negative but I hate seeing people go into unregulated areas they know nothing about and lose the lot.