Should I or not?

[dufis101]

So someone who found out I have some money has come to me with a proposition. And that is:

I take my money out of a CD currently making 7%. Give it to him, with him putting his house as collateral and he invests in Steer calves. He owns a ranch of 300 acres in Mexico and want to stalk it with about 500 head of calves. He is saying that with 90k cash(USA) he would be able to purchase 200 head and after 7 months of growth he is promising me a 14% gain on my initial investment.

I guess where I am getting a little quizy about it is that I am in Texas and so is he, but my invested cattle will be in Mexico. Now, whats keeping him here? And not just running with my money and retiring in Mexico?

From what I have read, May is NOT the time to purchase cattle. And to actually do it during the early fall months and then sell to turn in Spring. Am I right? I need some advice because I am a little bit of a loss and don't know what to do. I guess I am trying to be a smart investor... Thanks guys/girls!

 

[dufis101]

Jeez, I am an idiot. I am sorry for posting this in the wrong section, maybe?

 

[milkmaid]

I'd suggest posting this on the Everything Else part of the forum...

...and my only comment is, that if it sounds too good to be true it probably is.

 

[1982vett]

So someone who found out I have some money has come to me with a proposition. And that is:

I take my money out of a CD currently making 7%. Give it to him, with him putting his house as collateral and he invests in Steer calves. He owns a ranch of 300 acres in Mexico and want to stalk it with about 500 head of calves. He is saying that with 90k cash(USA) he would be able to purchase 200 head and after 7 months of growth he is promising me a 14% gain on my initial investment.

I guess where I am getting a little quizy about it is that I am in Texas and so is he, but my invested cattle will be in Mexico. Now, whats keeping him here? And not just running with my money and retiring in Mexico?

From what I have read, May is NOT the time to purchase cattle. And to actually do it during the early fall months and then sell to turn in Spring. Am I right? I need some advice because I am a little bit of a loss and don't know what to do. I guess I am trying to be a smart investor... Thanks guys/girls!

ABSOLUTLY NOT!

Chills just coarsed through my body. Sounds like a scam to me. Please, Please read these articles.

http://209.189.226.235/region/localregi ... lescam.php

http://209.189.226.235/stories/121705/l ... 217004.php

http://209.189.226.235/region/localregi ... scheme.php

http://209.189.226.235/region/localregi ... cattle.php

http://209.189.226.235/region/localregi ... cattle.php


I wish I could get a CD that paid 7%.

 

[angie1]

No, you should not.

 

[pdfangus]

Well for a solid investment I have some ocean front property in West Virginia........

 

[chippie]

I agree it's a scam.

Look at it this way -- it he is for real, why wouldn't he go to a bank or Ag Credit for the loan?

Because his ranch in Mexico probably doesn't exist.

 

[TexasBred]

Dufis....just the word "Mexico" should make you run from this like a scalded dog.

 

[bigbull338]

personally i would not do it.keep the money in the bank safe an sound drawing interest.financing cattle is a risky deal.1 bad step an you could lose all your money.stay away from the deal.

 

[dyates]

Sounds like a scam to me, but what's the house in Texas worth? If the equity in (not the value of) the house is significantly higher than the amount he wants to borrow, and you do your promissory note correctly, how could you lose?

 

[highvoltagecattleco]

Why does he need you? Why wouldn't he just finance his house for this project? If the whole thing sounds stupid, it is. He is going to stock (not stalk) 300 acres with 500 steers. Thats almost two to the acre. That sounds stupid. 14% gain on your money. Pencil it out. Cost of animal + land + feed + death & sickness = total costs. Then gross sales. He is selling them into the fall, which is typically the lowest market price. Just the stocking rate tells me your being scammed or this guy has no idea what he is doing. :???:

 

[Beefmaker]

dang Dufis this has got to be a joke---right???