Sharks Horrified at Entrepreneurâs SHADY Property Development Startup | Shark Tank AUS
VloĆŸit
- Äas pĆidĂĄn 19. 12. 2019
- David Lovato, founder of 'Crowd Property Capital' entered the Tank only to infuriate the sharks with his get rich quick scheme - his business plan unveils red flags throughout! đŠđš
Company Website: crowdpropertycapital.com.au
An international sensation, Shark Tank AUS features entrepreneurs pitching for investment in the Tank from our Sharks, five venture capitalists willing to invest their own money in exchange for equity.
As Seen On Shark Tank Australia Products: amzn.to/2ZJBbyf
Shark Tank US Products Collection: amzn.to/3bMNjmI
#SharkTank #CrowdPropertyCapital #Thief - ZĂĄbava
Apologies, it has recently come to our attention we've been including the incorrect website link for this business in our description. The link has now been updated with the business's correct website.
I got here be accident. Was watching dragons den and ended up here. Pretty much the same. Will have to watch some more
I.
Why would you give a link to the company website when the sharks were disgusted and appalled by him? You are just helping people to get ripped off.
Yeah, you don't have to be an asshole or have low control over your emotions when getting your point across.
No one in their right mind would be involved with him!!
"I don't really understand what's going on, and for that reason, I'm out"
-Me
Facts idk wtf they are even talking about lol
simply put, he is talking about individuals coming together, putting their savings in, and loaning to property developers to develop properties. The problem with this is that he is convincing the ordinary man on the street, people like you and me, to "invest" with him(aka come together to loan to others) because we will earn minimum 4% interest (e.g if i put $1000 in, I would expect to get back $40 yearly until the loan is repaid) as compared to if I am putting my money in a bank, and earning much less. However, the ordinary man on the street does not understand financial instruments, they do not understand that for these type of loans, the level of risk involved would require a 17% to 25% return (for example, some credit card companies charge 22% interest on credit card loans simply because there is a higher risk that the person does not pay the money back). A simpler analogy is that he is offering a few candies in front of kids to swim across a river, when experienced people know that a whole truckload of candies is required to swim across these waters.
Sly good explanation
Hahahahahah
Sly, wow thank you
Janine: 4 % on a mezzanine type loan! That's terrible !
Me, who has no idea what any of those words mean: that is TERRIBLE !!
A mezzanine loan is one that pays back (usually) a high interest rate based on the much higher risk associated with that type of loan. To me, it is sort of like gambling and, gambling with money you will need in the future is not a smart move.
@@OverlandOne from someone who has had terrible mistakes with loans in the past. Am blessed i read your comment. Those words will stick with me what you said about gambling money you will need in the future. Thanks mate appreciate your wise words
@@clairejohnston2122 Thank you Claire. We all have made mistakes with money in our past. The important thing is to learn from them and not repeat them. These types of loans are designed to take advantage of the ignorant. (meaning, not stupid, just not knowing better due to lack of knowledge) I would rather be poor my entire life than make money from taking advantage of other people's lack of knowledge. An educated consumer is their worst fear.
@@OverlandOne brilliant advice again, thanks. Yeah i made mistakes when i was younger, my first house, the deal on that, loans to cover loans like it was crazy. Nearly all sorted now, been 10years of hell. Live and learn for sure. I just really appreciated what you said. Not often on the comments people spread the correct information and helpful too. Your a very kind soul. Hope nothing but the best for you
SAAAAAME. Iâm obsessed with these videos and donât understand shit from applesauce of what theyâre saying.
Lol he starts talking about cutting out the middle man but his whole business is him being the middle man.
Neither a borrower nor a lender be, be a broker!
Don't you see what is going on? They get 20% of his profit for the money... He ISN'T making a PROFIT... So he gets FREE đ° money by scamming them into giving him money. That's why they are mad.
@@patriciaokelley187
It's basically the model of the "no credit/bad credit" car loans or payday loans
It's not a Payday loan model. He is not agreeing to repay the loan with 20% interest per year. He IS AGREEING to give them 20% of the PROFIT (and ownership) from his business income permanently... The problem arises from him never making profit as he refuses to charge enough interest on the loans plus he probably has had loans go bad. He is only asking for $80,000 also which is not much loan money. I bet he is trying to scam them to get out of debt. But he doesn't have to pay it back as they are 20% owners in the business and are only entitled to the profits as they don't hold a controlling interest of 51% in the business.
@@patriciaokelley187 which means banks are scam. wake up people. lol.
Pitchman: "They will be getting 4-5%."
Me: "4-5% on a loan doesn't sound half ba.."
Shark: "On a mezzanine? That's terrible!"
Me; "Disgusting."
Hahahhaha
Lol
đ€Łđ€Łđ€Ł right?
WTF is a mezzanine ?
It is terrible, it's not simple real estate, it's nothing that's built. Essentially they build something with money from a ton of investors and sell it through an agency to turn a profit. When there's a problem, any problem, higher expected labor costs, permit problem, environmental issue, fraud, bad material, fire, building collapse, anything at all the bank will get most if not all of their money back and the investors will get what's left if any. Therefor if nothing goes poorly you get around the same return rate as just renting out a building that you own whilst if shit hits the fan you're fucked.
That's like me saying here come play cards, pay me 1000 bucks and when you draw a card you get 1040 bucks back unless it's an ace of hearths in which case you lose all your money. not good.
i'm hearing ominous music and for that reason , I'm out.
*chuckles in I'm out*
đ€Ł
đ€Łđ€Łđ€Łđ€
And just imagine in person there is no music. Awk silences galore
This guyâs parole officer is waiting for him in the next room.
đđđđ
Lol
Let's hope so.
For real!!
@Himalayan Health Hut,
*May you please explain your comment đ©?*
"I'm looking for an investor to add legitimacy and trust to my my business"
So... that means you don't already have that đ©
Not necessarily... The thing about good bullshitters is enough of what they say is reasonable that you can't just take what they say as the opposite of the truth.
To be fair most startups donât have that anyway. How many people would view a business with only two sales as legitimate? How do you trust a business that has never proved its legitimate? Thatâs the main problem new businesses have, always.
@@Hannah-zw9ow Exactly. There is always a starting point. This guy sees that the little guy is being screwed and is trying to do something about it. He is doing some things wrong, buy having holes poked in the perfect plan is a step to getting it right.
Considering he doesn't have direct experience nor the proper qualifications, yeah that's a double red flag.
@Mr Sandiep True but when going into the field the last thing you want to do is jump head first into the most risky ventures when there are safer alternatives. for a beginner.
We had a company like that in Poland, the owner was recently sentenced to 15 years
Uuu...Mniemam, ĆŒe koleĆ przedstawia model biznesowy ala Amber Gold?
What was the crime?
@@danielgilman6110 uhhh Scam???
ahsan raza Obviously scam, but what charge?
@@danielgilman6110 Handling a convoluted financial pyramid operated based on investments in gold which, as it turned out, were in fact worth ~100 times less than assumed. The company made so much dirty money it co-funded an airline. People were attracted by claimed returns reaching twice of what you could normally get in a bank. Of course the guy didn't have any professional credibility as an investor or even accountant.
The fella was winging it, looking for a respected investor to legitimise a dodgy business he didn't even have a licence to run legally. What a tool.
It's not a pyramid scheme, it's a reverse funnel investment system :)
@@oz_jones I really don't know what's that?
@@honor9lite1337 it a ponzi scheme
@@durian111 Not entirely, its more so gambling then a ponzi scheme.
@@happywombat Whenever they say, "...it depends on..." You know it's a gamble.
When Steve takes off his glasses u know he caught onto something
he takes his glasses off a lot
đ€ đ
ye its like that dramatic moment in a movie when the music starts to swell up....
Hes got nothing on Toukers "adjust my glasses" move though.
That's just editing, makes for a better TV to lampshade what's about to happen with these gestures. I doubt that the real person have that much of a tell.
Mark Cuban would have cussed him out with his eyes and declared he was out before the pitch was over.
Then he would say he sold bin bags door to door when he was a kid
@El-ahrairah - Where did that come from? You Iranian or something?
Less than 5% of fixed rates defaulted, 50% on variable. If you spend $100kâs and arenât bothered to even do 30mins research then you deserve what you get... Why go variable to save short term if you canât afford the risk?
Also it was global, you can really blame Boomers as they all made 20x their investment on their house with similar policies that made the rest suffer.
Ignorant millennial/ gen Z wanker !
Glenn Beauchamp, LOLOL. Mr. Wonderful is intimidating but likeable at the same time.
The Bastard Gift Mr. Wonderful would have said it was pee pee poo poo
Itâs amazing how much more polite Australians Sharks are than Americans or Dragons
It seems like the UK Dragon's Den has a lot more quality control, or at least people are less likely to bring outright scams onto the program like this guy
Very True!!
the american sharks would have called him a scumbag.
@@louiscyfer6944 "you're dead to me!!!" :D australians are cool in general. may be because there are so few of them and they feel like a family. or the school system, media etc is better
Word, I started watching Dragons den and i was surprised how the entrepenuer gets a chance to hear everyones offers unlike Shark tank U.S where they often get insulted if you hear another offer or give you seconds to decide
Jenny: I'm watching the wrong show for that reason I'm out
Barbara: You have an answer for every question, so I'm out â
Touker: COME TAKE MY OFFICES IN LONDON
Deborah, shouting at the TV: âDo you have paperwork?â
Peter Jones, by phone: âWhy couldnât I justâŠâ
I can build your website for you
XDDD
The moment he said he wanted them to lend legitimacy to the business, I knew it was a scam.
the fact that he said it twice in made it quite obvious he only wanted them for PR for a horrible idea.
They did too. I was wondering why it got really awkward after he said that
Everytime I watch Australian sharks, I admire their politeness and feel that they are sincerely loving, caring and nice people. This pitch proves it 100%
Nah bud....we'd rather pick our battles. So we choose to tread carefully because if a line is crossed we know it'll go from 0-100 real quick.
Dancing With Fools Honestly, I find that even more respectable than the former.
Funny, i only watched a few clips but i got the opposite impression. Guys being dicks and girls being bitches. Except for one moment of honesty from Steve.
that's just on the surface mate
I'm wondering if the lady in red has only one dress ! I have watched a lot of these videos and she always has the same dress on ! Maybe could pass the hat and buy her a blue one !
Considering his intent these sharks were rather polite to him. Had he pulled that pitch in the US Shark Tank he would left the tank with teeth marks.
Teeth marks? Cuban & O'Leary would've eaten him for dinner.
The USA version is the fakest one though
@@BobbyTMF that's why it's great, it's extremely dumb
I'd love to see him try it in front of O'Leary. Never make it out alive.
Richard S, you're right!
This entire clip has been freaking Greek to me.... I don't know what they are even talking about. I'm just going by facial expressions and the intense background music.
Hahahahahaha I understand that. đ
They are giving people 4% (same as a savings account) for a super risky investment and keep 72% of the profits
@@username8644 at least they said how little you will actually be earning. I knew a guy who's entire family put money on a scam fund that give they high returns (on paper) so they never withdrew until the guy who ran the fund disapeared with the money.
@@username8644 I thought that soon to expire options always had a delta close to 0 or 1. How can you make money off them?
@emz koe: I am greek and I didnât understand much either...
As soon as I heard "peer to peer lending" the word ponzi just flashed in front of my eyes. I should watch the rest of teh video to see what happens next....
You have good instinct
Pretty bad when you've only taken a business 101 course and heard ponzi scheme from that moment on.
peer to peer lending is actually super common on every respected cryptocurrency trading website.
@@marshmallowmann20 thats because its useful, but it doesn't mean that it doesn't have huge potential for fraud
There's plenty of peer to peer lending companies... LendingClub, Upstart, SoFi, etc.
So, I basically want to become a Loan Shark and I need your money first and I work has a janitor for a property...in Sydney.
Sorry, he said he worked AS A JANITOR??
ACTUAL đđđđ
I'll be honest, a lot of this terminology is going over my head...
try standing up
On a property, you can have a mortgage from a bank, that's the first loan. Then you can have "mezzanine" lending, which is a second or third mortgage. If things go badly though, the bank gets paid back first, then the mezz lender second (or third). There often isn't enough money to pay back the mezz lender.
This guy is saying he wants unsophisticated investors to be mezz lenders, because he'll pay 4% interest, which is better than the 2% interest you get with leaving your money with the bank. The difference is that mezz lending is massively more riskier than just sticking your money in a savings account. More risk = more reward, so mezz lendingers typically get 17-25% interest, not 4%. He's trying to fool people who don't know any better.
@@particle409 Thanks a lot for that. Frankly it seems like the dictionary definition of a Ponzi scheme to me, promising unaccredited investors (i.e. "little people") high interest returns in return for a small part in a large investment. Even forgetting that the returns are much lower than advertised, as you point out, schemes like these almost always collapse. They'll never outcompete the banks for investors, liquidity will run dry and the operators often run off with the rest of the money leaving everyone else with nothing. I just wish they said it in those exact terms at some point in the show so people would understand it. A very similar pitch was made in the US version and they shut it down almost immediately. If they at least said the word "Ponzi scheme" explicitly, most people would be turned off, even if they don't know exactly what a Ponzi scheme is.
@@Zzyzzyzzs TECHNICALLY not a ponzi scheme...
As, in a ponzi scheme, he's not actually investing at all. In a ponzi scheme, what he does is take the new person's money, use that to pay off all the old people, and repeat ad-naseum...
This is, however, the kind of business that COULD become a Ponzi scheme quite easily...and likely would.
Use a dictionary if you don't know. You should be concerned about not understanding simple economics. He isn't making a profit from the loans. He is trying to get money for his business and in return selling 20% of his business and profit permanently for the money. So he doesn't have to pay it back... They will be co owners. They get 20% of the profits hoping to eventually get it back and make a profit. But 0 profit is zero income and they will lose the $80,000. It's the guy trying to scam FREE money probably to just pay off bad debt without having to pay it back. That's why they are mad as hornets.
This is the guy who ends up in prison for taking life savings from small investors and taking the profits while letting them take a loss on unsavory investments. He's too sketchy. I wouldn't trust him with a dime.
of course u won't when u don't even have 100 dollars in your account
@@tammyt7424 u didn't have to say that
@@tammyt7424 I have 10,000 times more than 100 dollars and I still wonât give a dime
@@gothicherie6691 Sure ya do Internet warrior
@@gothicherie6691 bru you can hardly pay your rent. Stfu.
The sort of bloke to end up ripping families off and being chased by Tracy grimshaw
show was cancelled... but Tracy may make an exception
I would not run from Tracy
The fact that he said "trust" twice in his pitch is a huge red flag. Worst pitch ever.
I really like how they dissect the business model. They ask very intelligent questions. This is what I like to see.
"Thats what governments are for, to protect the little guy."
Stark reminder that this isnt the american version
Sure they are.....
America pays out far more in social welfare, medicine, etc than any country in the world. And as for itâs foreign aid... No one even comes close to coming close. America also pays something like 100 times itâs fair share in NATO and lots of UN programs. So yeah. Youâre talking out your ass. That said... Now if you said no government really looks out for the âlittle guy,â they way they should, I wouldnât argue. To single out America... Youâre full of it. I mean pick any realm of influence. Immigration... For example. Americaâs has some of the most lax and kindest to the âlittle guyâ laws in the world. Most countries donât even allow people who were born in that country to immigrant parents automatic citizenship status. The US does. It doesnât matter if your parents crossed the border 5 minutes before you were born. Youâre a citizen. Anchor babies arenât issues in places like France or Italy because that baby would have the same citizenship status, or lack there of, of their parents. By law, there is no anchor. And do you think a Guatemalan immigrant is worried about being stopped at the US border? They arenât. Worst case scenario they try again. They are worried about crossing the Mexican border where armed Federal death squads routinely execute illegal immigrants. But America is so bad. Kids in cages. Blah, blah... Right, America is just the worst. Thatâs why every single western democracy copy pasted our constitution.
@@benhaney9629 everything, LITERALLY EVERYTHING you just said can be easily debunked with a myriad of reputable sources.
Like what did you just think if you say sh*t that sounds true then that's enough to win the argument?
This isnt kindergarten. Show your work.
@@stratecaster547 or you could show your work in debunking him
.
"Wow, how much more arrogant and greedy could he get?"
- Me, understanding about 4% of what's being said (that's terrible)
The "entrepreneur" only wants you to understand 4% cause that's how much you getting
They do explain it. They say it's a high risk investment because there's no security. Normally there's a high return, which is why you'd take the risk. One of the sharks mentioned he has gotten 14% on such an investment that year. Meanwhile this guy is babbling about shafting the average small time investor with only 4% for such a high risk and pocketing the difference.
"So this is a dream?"
"Well, yeah"
"Or a nightmare."
Jabaited.
you got jebaited. you got- you got jebaited
I love how moraly and ethically they stand up for the little guy
While also making sure that the little guy has no legal avenues for investing his money
This is Shark Tank, not âmake a wishâ.
this was offered in Shark tank america, Cuban called bullshit on first sentence
Something Tycoon I believe? Lol. Mark looooved the name alone.
It's people like him that the public need to be protected from.
I literally have no clue about any of this stuff and I would not be alone in this.
My mind doesn't work that way and I've never been interested in that particular subject however, this guy is really dangerous.
lmao the dramatic music while they're having a conversation about finances.
As an Australian this is normal on TV shows like this
Thats whats playing in my head as I'm paying my bills too so it makes sense LMAO
@@CieraMychele ha ha ha same.
No lie, I want walls with fake sharks swimming about in my house
Chloe W I always thought they were real đ or u joking about it lol
@@arshvirsidhu1110 They're real
They are fake. itâs the same video that the United States Shark Tank version has.
@@DBR00 maybe they're real and they travel between the two
@@DBR00 theres an episode with a granny whos a Baker she makes a deal with Naomi and the granny goes up to the tank to the see the sharks cause she thought same as you, but they are real
"I'm a shark, but I'm starting to feel like a guppy"-Dr. Glen Richards đđ€Łđđ€Ł
They really need to both tone down, and soften the use of the background music. At this rate, I was anticipating the building to of exploded with the build up of dramatic sound effect
Australian Shark Tank: sharks morally offended and shocked by strategy that is exploitative and high risk to the customer for the sake of profit.
UK Dragons Den: dragons start fighting amongst themselves to get to the new business owner as soon as they sniff a high profit margin even if it means exploiting the owner.
The Dragon usually like to sniff out a larger share of the profit from the entrepreneur, its so cutthroat occasionally the entrepreneur ends up the one declining the offer
This was just another bizarre startup where the "entrepreneur" thinks that they're a capitalist and anyone can do it. I've seen them on the US version as well and they got laughed off the stage.
Richard Wielgosz isnât his pitch the exact description of a Ponzi scheme? Lol
@@robertvillaume51 pretty much yea
I gotta say the Australian sharks are very polite even when they find the pitch distasteful.
@@MQT129 the Australian show is the only one worth watching.
Steve: "where are you from mate?"
"Sydney, excellent!"
Blodgidonka lol . Heâs racist af
@@incognitos4342 I don't get it, how can an Aussie be "racist" about where some other Aussie came from?
@@incognitos4342 You must be from Adelaide to be this thick.
;)
@@oz_jones lol
Can someone explain this to me an non australian
bro this same idea was pitched in US shark tank and they kicked that guy's butt so bad.
What was the name of the product?
@@meme7886bebe i dont remember it had the word Tycoon in it
btw it was not exactly the same product but the basic idea was crowdfunded real estate.
just google tycoon shark tank and mark cuban is out in 2 seconds. Super funny. Worth watching.
@@meme7886bebe czcams.com/video/LS0GCTpjKCI/video.html
Yes, but it was slightly different, I think Customers were going to be actual investors in the property, rather than just lenders. It was still a dreadful idea, as pitched.
Barbara: I'm not in this show, and for that reason, i'm out.
This made me snort laugh đ
DIS-CUS-TANG
GUS*
This made me think of Gordon Ramsay đ
Sharks: *âThatâs called fraud!*
Entrepreneur: *Shhh đ€«!*
I have family that fallen in this sort of trap and lost his entire pension when the assets and funds were frozen by our government revenue service. This is sickening.
I am so sorry that your family has fallen victim to this sort of scheme. Thatâs heartbreaking to hear. đą
So how is everything now? Recovered?
I saw him came out and when he started explaining I was like what an absolute mess. Heâs asking for money so they can give more money with not even a guarantee of any kind of return.
addy bishop Ponzi scheme?
Young_ Zombling_ not exactly. Generally that has products to sell and an emphasis on recruitment. Definitely a scam but I think itâs considered loan fraud.
addy bishop i thought what you just explained was a pyramid scheme. Didnt Bernie Madoffâs ponzi scheme not sell products?
Young_ Zombling_ I guess youâre right. Technically the product is a loan
Itâs interesting. Heâs not one of those people that doesnât have answers. He seems to know exactly what heâs talking about. Itâs just that what heâs talking about is shit...
well that has wrecked his name, and reputation,
Ian Lister well it was a stupid ass idea anyway.
Ian Lister đ
@@nath-wp7xp it does sound it (and thank you to the Sharks for explaining why its bad), but damm this guy is now on You Tube, and no one is gonna trust him. Video title aside, it all seemed odd, when he was talking about using their reputations for his business.
@B B I fear lots of people will, unfortunately. There are many who don't understand what's at stake, how the law works or even the concept of investing, and will be suckered into his rhetoric of being a part of something big. He'll probably lay low for a while then rebrand and start really low-level, like canvassing in shopping malls, while gambling on people not having watched this show or not remembering who he is. And even if they did, he'll try and convince them that the Sharks just didn't get it, that it's safe and legal and lots of people are doing it. He'll probably grab a lot of grannies' savings that way, plus young folk who don't know their legal rights wanting to have their first property investment. This despite the fact that Ponzi-type schemes like this have been around literally a century and are blatantly illegal.
This guy was going to cost a lot of people a lot of money. His business idea was to offer high risk loans to people who doesn't qualify for it, from where he'd take 70% of the profits for himself, without risking any of his own money.
P-P loans in China have lead to huge losses. Last year you would hear of people losing everything on a weekly basis as the loan managers went bust.
But u get an extra $20 on ur $1000 and buy lunch!
I'm pretty sure this is just a shitty costume for a ponzi scheme.
p2p loans are absolute standard in online trading. they get bad rep because people use them like idiots.
"I work for a large property developer ....I wash his car and walk his dog"
Nice....I was thinking the same lol
Hahađđ
Credit to the guy he took on board what they said and completely changed the business model to focus solely on sophisticated investors and give them the protection of being stage 1 investors.
Glad to hear it! I liked him.
Even the 17 percent quoted here strikes me as being incredibly low for mezzanine or risk finance.
Jenny is on the plane on her way to Aus to save this deal.
How she afford the airfare? She's broke. Lol
"Since there was no seat on the plane, I'm out"
I love how Jenny made it to Shark Tank AU comments đ€Łđ€Ł
Not gonna lie, was confused at the first half. Second half made a little more sense and it sounds dodgy as heck
I come here for the intrusive soundtrack music and over editing.
WHAT?!
@@Candlewick14
Is there a certain word I used that is confusing? Or the entire sentence?
Iâm glad someone agrees. The music is way too loud. I could barely hear the pitch.
The music is so loud and for that reason, I unsubscribed. Iâm out.
The Music is like MIB (Men In Black) music.
If the lady who bought 25% of a guy for the rest of his life says :"that ain't right", even Satan would say, "mate I'm out".
Did she take his arm or his leg?
3:40 Con-man: âFour to five percent"
5:30 Also Con-man: âI didn't say 4%"
I love it when people go on this show and think that these investors dont understand how the investment industry works.
4% return? That's hilariously bad, Most HISA are 2-3% lmao what kind of idiot would use this to invest
I'm Aussie but don't watch any TV but I love how we're like halfway between the US and the Brits. It's not quite as hyperactive and over the top as American shows, but not quite as subdued and slow as British shows can be. I do worry that it's getting more and more Americanised though
I was just thinking the same thing
Steve's "minefield" analogy was making a lot of sense, until he said "I just stood on a pressure plate. I wanna keep my foot, I'm out." Once you've stepped on the plate, leaving is the worst thing you can try to do! Sometimes I feel like the Sharks are just spending the entire negotiation time trying to find a creative way to say they're out đ
He basically confessed to the scheme. He deserves some credit for that.
I was shocked when he admitted he needed a financial services license and he didn't have one.
He's dodgy, but find me a peer to peer lender who isn't.
First time I've seen them not say something along the lines of "I wish you the best of luck" before saying "but I'm out".
Damn, I had to research mezzanine financing to understand what was going on... Yeah I am dumb
It's almost 2020, and the P2P market in China had already imploded.
i think peer-to-peer lending/crowd sourced lending was a good idea (risky loans diversified, pooled small investors, better access), but enough competent people in multiple markets have tried it with multiple models (secured, unsecured, small business loans, real estate), and at the end of the day the numbers never make it worth it. simply too many defaults, not a high enough return to justify the risk, cost of management. the banking and financial sector is just too competitive.
[edit: i meant, like a good idea to try out, made sense on paper, but it just doesnt work when applied]
It would be better without the over dramatic music.
Makes it really cringe. The British version is perfect. They're trying to make it feel like an action movie
MURRRICAA
wait a sec..
@@knox312 'STRAYA!
I actually like the thrilling music. Not a fan of the Dragons den.
@@knox312 lol
Damn son if I get 1 dollar đ” for every time he blink I'm gonna start up my own company
Steve should be a census taker
"That's what governments are for, to protect the little guy." Clearly Australia and and the American governments are quite different.
Just because a person says it, doesn't make it true đ
Never expected to hear Stephanie McMahon say "Mate I'm out"
I know what they meant but âfinancial entrepreneurâ sounds kind of like a âmoney bankerâ
Well, entrepreneur implies first and foremost entrepreneurship, starting a business especially based on a novel idea. "Financial" implies the finance industry, so it's not at all like money banker.
My favourite thing about this pitch was the complete absence of any mention of how he plans to make money, how much, how fast, or from whom.
âThatâs what governments are for: to protect the little guy.â
LMAO Governments are never for the little guy
Kim jong un, Putin and xi would like to disagree đ€Ł
@@Pilsnor you are proving the wrong point...and you don't know anything about either russia, china nor north Korea
@@centurion2396 wow, you must be fun at parties. I am not âprovingâ anything, its a joke đ€Ł and i know plenty about what corrupt shit and abuse of power is happening in those places đ
@@Pilsnor aight i admit i didn't get u were sarcastic i will take that L gladely and apologiseđ
@@centurion2396 I think we can all agree that google or apple or microsoft need to devise some sort of sarcasm font ASAP. I swear we would be living in a different world today if people understood what sarcasm looks like on the net. Without voice inflection, it's very hard.
He is just trying to scam them out of money that he doesn't have to pay back if he doesn't make any profits.
Jenny Campbell âI donât appear on this program, I can see great potential, very investable and therefore Iâm outâ
Ha ha ha
Bogdanoff: He bought? Dump it.
Janine once wanted over 30% of a minorâs pastry business. You know if this guy disgusts her, he is bad.
at first it sounded like loan shark method with extra steps but as it went on it just became a scam instead
Here's the interesting part of this. Crowd sourced investing isn't really a mezzanine investment. The issue is the loans aren't secured, and they would be 2nd mortgages. Meaning, the investors would effectively be cut out should the investment fall apart. They hold no actual value in the property.
Watching this video, understanding everything within it, and then reading the comments has really made me feel a lot better about my business and accounting classes I'm enrolled in :) much more confidence in my ability to understand the jargon. Yay! I'm learning đ
Congrats. I read all the eilif explanation comments and I'm still clueless
Please explain it đ
@@MizJazzyj14 I am honestly not confident enough to explain it. đ I'm a new student to business. I understand what is being said but do not fully comprehend it enough to explain it and any way other than text book definitions, sorry mate :(
Also, I forget what most of this video was about đ
So this is a dream
Yes he said
Shark no its a nightmare
đđđ
Heâs figuring out his business model during the presentation LOL
About two weeks before A Current Affair are on his doorstep going "Mr Lovato, why won't you speak with us? Mr Lovato? Mr Lovato??"
Crowd investing already exists. It's called kickstarter. What he was selling was crowd banking.
As a viewer of the _Dragons' Den_ and _Shark Tank_ shows from the UK, Canada, Ireland, the US, and Australia, this is one of the worst businesses I've ever seen pitched on any of them.
I like that they're not being mean just to be mean. They're harsh but that's what being an investor is. Everything they say makes sense, at least to people like me who don't know anything about investing money.
I just saw a man nod his head 10,000 times & blink 47,943 times out of complete and utter nervousness!
Here in Brazil we have a similar model, but it's called FII, works wonderfully because it's made by agencies and banks with a lot of money that can distribute the risk better.
So yeah lots of jokes on Jenny, but on this pitch she gave the most fitting reply out of all the other Australian sharks. Though I really missed Mark Cuban here.
The jokes are actually in reference to Jenny on Dragons Den
oh crap this was done on american shark tank years ago and rejected. Same BS replys by the sharks. This is all staged
The rate of return is inconsequential because people with lower amounts of money can't currently make the loan anyway
The rate of return is absolutely not inconsequential. Where the money comes from, whether it's working class families or a multimillionaire, is inconsequential. The return should reflect the risk profile of the debt. The sharks explained it quite well - mezzanine loans are unsecured, so they gets last dibs on any assets liquidated in the case of default. Much of the time they are left with nothing at all. The rate of return should be compensating investors for taking that much higher risk of being left with nothing, but it doesn't even come close. This is essentially like selling someone a bottle of water for $1,000 expecting them not to know what the bottle is worth. It's a total ripoff.
Can someone lower the volume of the music? it is drowning out the conversation!
omg the background music, the facial reactions. hahaha
Aussie sharks might not invest as much as American ones but they are more polite
Listening to the background music, you'd think you're playing Call of Duty instead of watching a business pitch.
"I'm in the wrong country, and for that reason I'm out." - Barbara
Nice to see the sharks know wtf they are doing. Shark Tank Australia is pretty cool, I like these sharks! Anywhere a Canadian can watch these online?
CZcams
-that's what governments are for to protect the little guy
Meanwhile here in the US during the pandemic... đđ«
Itâs funny during the pitch âŠ. The female shark always smiles and nods her head in agreement , but when it comes to questions she tries to tear them apart and says sheâs out ,
Up until the 7th minute, the lady in red is like "WTF IS GOING ON ? " LOL