what is a Ponzi scheme?
Sep 05, 2009
in
Commercial Mortgage FAQ
I came across a commercial lender offering 4% loans it sounds way to good to be true, so I think this is a scam
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One comment
dave p on September 5, 2009 at 2:44 pm
It isn’t a Ponzi scheme. A Ponzi scheme is where the scammer promises high returns on an investment and pays these returns to the investors by taking the money paid into the investment fund by other investors. It can only work for so long, though, because eventually somebody will want to liquidate the amount of their investment, but the capital has already been used to pay another investor.