Investing with OPM

[cyjeff]

My apologies If I have upset you, I don't think we are on the same page and possibly jumping to conclusions.
I still fail to see how my parents lending me money for a 1 year period constitutes a pyramid scheme? I have put aside 25% of the loan amount as collateral. I really cannot make the pyramid scheme connection here? I am just accepting the downside risk on behalf off the lenders with my own collateral.

25% of the loan amount.... out of YOUR funds or theirs? I am thinking, THEIRS.

So, if something happens, you are going to pay some of the investors their money back using the funds of the OTHER investors.

You see, if you are reserving some of the funds to pay back the shortfall from others, then we are on the slippery slope to Ponzi.

This is illegal and, if you actually had a broker's license in NY, you would know this.

 

[dcmdinel]

No you have misunderstood.
I have taken an amount worth 25% of the lenders amount from my current portfolio and moved it to capital guaranteed liquid investments. This will be used to cover losses.
Perhaps now things will make better sense?
I am on this forum because I have an honest intent to be on the right side of the law.

 

[dcmdinel]

lol yes my canadian brokers license also taught me about ponzi

But your statements about my brokers license not being valid in NYC is correct and brings up interesting questions. I have a basic lenders contract which does not specify what the borrower will be using the money for. So my understanding is that there is no need for my license to be valid. It is the equivalent of borrowing money at the bank with the purpose of investing in the stock market. No licenses required as you are trading capital that is technically your own correct.
Thanks a lot for taking the time to help me btw

 

[cyjeff]

No you have misunderstood.
I have taken an amount worth 25% of the lenders amount from my current portfolio and moved it to capital guaranteed liquid investments. This will be used to cover losses.
Perhaps now things will make better sense?
I am on this forum because I have an honest intent to be on the right side of the law.

great.

Then get a broker's license and a proper business license.

Do not guarantee any sort of results and, instead, remind people in writing and verbally that giving you money may mean they will never see any portion of it again.

have the contract created by an attorney. A NY attorney familiar with this process.

Then get your license as a financial advisor.

 

[cyjeff]

lol yes my canadian brokers license also taught me about ponzi

But your statements about my brokers license not being valid in NYC is correct and brings up interesting questions. I have a basic lenders contract which does not specify what the borrower will be using the money for. So my understanding is that there is no need for my license to be valid. It is the equivalent of borrowing money at the bank with the purpose of investing in the stock market. No licenses required as you are trading capital that is technically your own correct.
Thanks a lot for taking the time to help me btw

Your contract with your investors will make that assumption invalid. Because the borrowers are making an investment.

That requires legal circumstances to be met.

 

[dcmdinel]

Am I doing anything against the law if i guarantee a certain return. And if we do not generate this amount from trading revenues, it will be taken from the reserve capital (mine).

 

[cyjeff]

Am I doing anything against the law if i guarantee a certain return. And if we do not generate this amount from trading revenues, it will be taken from the reserve capital (mine).

You cannot, by law, guarantee a return.

See, this is the stuff you learn when you get your license.

 

[dcmdinel]

Ok excellent information. So does that mean there is no way to borrow privately (if my intent is to invest) without meeting the requirements of licensing and so on.

 

[cyjeff]

Ok excellent information. So does that mean there is no way to borrow privately (if my intent is to invest) without meeting the requirements of licensing and so on.

After a page and a half, you want to ask me the same question you asked in the first post again?

You are on your own.

 

[dcmdinel]

No i was asking if there were any other workarounds. I will take that as a no. Thanks a lot for your help.

 

[anteater]

I don't get it.

The OP is going to get a personal loan (or loans) from one or more persons. The loans will have an interest rate of 5% annually and, presumably, have a term of some sort.

The OP intends to day trade. The personal loans have no connection to the success or failure of this little day trading enterprise. Repayment is not contingent upon earning a positive return day trading. If the OP tires of day trading, the OP can head to the racetrack and use the money to wager on the ponies.

All the rest is just a bunch of mental accounting.

While this has a high probability of ending with strained family relationships and lost friends, seems to me that is the OP's problem.