Bond Proposal
<br />Many of you may of thought of this, and perhaps businesses like this are already in place. I would like to start an investment corporation that would issue high-interest bonds (say 8-10%) to the common investor. The bonds would be backed by 70% LTV of the real estate held by the corporation. The monies would be invested in properties that get a ROI of 20% or higher or the corporation would flip the property. Do you think there would be a market for such bonds? Would the common investor be willing to invest at these rates to a company that is relatively unknown? Ideas on how to get such a company up and running? (I have plenty of ideas, but would like to hear yours)
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<br />Are there regulatory and licensing concerns to consider?
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<br />[ Edited by groverm on Date 08/27/2005 ]
SEC, State Departments of Financial Institutions, etc... are just a couple of regulatory entities that would have a hand in it...
Thank you for your replies!