7Ci says the ‘25 per cent guaranteed return’ sees investors providing private financing to a development company in return for guaranteed returns of 25 per cent in the first year, payable as 6.25 per cent of the investment sum per quarter.
The ‘financial partnership’ guarantees returns of between 40 and 70 per cent on a two-year investment and the ‘100 per cent return’ option guarantees the initial investment sum will be paid back in full after 36 months.
7Ci says investors’ money is secured against land or property, free of debts and confirmed by an independent valuer to be worth 100 per cent of the sums held, and put in the hands of UK overseas property solicitors, ILP, to hold the security in escrow.
7Ci fund and private finance director Mike Powell says: “Our returns are absolutely guaranteed, deliverable at fixed points in time, providing certainty and confidence in the investment.”
Torquil Clark investments director Philippa Gee says the words ’25 per cent guaranteed’ and ‘risk free’ don’t tend to go hand-in-hand.
She adds that while she doesn’t know the finer details of the products, there are a few warning bells that ring immediately.
She says: “You’ve got to be incredibly cautious about these kinds of schemes and the actual risks involved. Advisers need to rip the products to shreds, understand them inside and out, find out how they’re able to guarantee it and why and on what basis. You can’t just accept what’s presented to you. You have to be able to dig deep and make the product stand up in your own opinion.”