Sharks Horrified at Entrepreneur’s SHADY Property Development Startup | Shark Tank AUS 

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!!

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. I’m obsessed with these videos and don’t understand shit from applesauce of what they’re saying.

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

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 💰 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.

Hahahhaha

Lol

🤣🤣🤣 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.

Uuu...Mniemam, że koleś 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.

😂😂😂😂

Lol

Let's hope so.

For real!!

@Himalayan Health Hut, *May you please explain your comment 😩?*

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 don’t 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? That’s 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.

*chuckles in I'm out*

🤣

🤣🤣🤣🤜

And just imagine in person there is no music. Awk silences galore

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.

he takes his glasses off a lot

🤓 👀

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.

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 $100k’s and aren’t bothered to even do 30mins research then you deserve what you get... Why go variable to save short term if you can’t 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

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

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

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 !

@@karenspeidel1901 the red dress is because she owns the website redballon, I believe it’s meant to me some sly form of marketing, also assume red is probably her favourite colour 😂

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!

Barbara: You have an answer for every question, so I'm out ☞

Touker: COME TAKE MY OFFICES IN LONDON

Deborah, shouting at the TV: “Do you have paperwork?” Peter Jones, by phone: “Why couldn’t I just…”

I can build your website for you

XDDD

Sorry, he said he worked AS A JANITOR??

ACTUAL 😂😂😂😂

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.

Hahahahahaha I understand that. 😄

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 didn’t understand much either...

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.

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 won’t give a dime

@@gothicherie6691 Sure ya do Internet warrior

@@gothicherie6691 bru you can hardly pay your rent. Stfu.

show was cancelled... but Tracy may make an exception

I would not run from Tracy

Sure they are.....

America pays out far more in social welfare, medicine, etc than any country in the world. And as for it’s foreign aid... No one even comes close to coming close. America also pays something like 100 times it’s fair share in NATO and lots of UN programs. So yeah. You’re talking out your ass. That said... Now if you said no government really looks out for the “little guy,” they way they should, I wouldn’t argue. To single out America... You’re full of it. I mean pick any realm of influence. Immigration... For example. America’s has some of the most lax and kindest to the “little guy” laws in the world. Most countries don’t even allow people who were born in that country to immigrant parents automatic citizenship status. The US does. It doesn’t matter if your parents crossed the border 5 minutes before you were born. You’re a citizen. Anchor babies aren’t 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 aren’t. 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. That’s 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

.

While also making sure that the little guy has no legal avenues for investing his money

you got jebaited. you got- you got jebaited

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

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.

Chloe W I always thought they were real 😂 or u joking about it lol

@@arshvirsidhu1110 They're real

They are fake. it’s 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

Richard Wielgosz isn’t 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.

I am so sorry that your family has fallen victim to this sort of scheme. That’s heartbreaking to hear. 😢

So how is everything now? Recovered?

Something Tycoon I believe? Lol. Mark looooved the name alone.

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.

This made me snort laugh 😭

Blodgidonka lol . He’s 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. ;)

Dark Shadow the correct term would be regionalist

@@oz_jones lol

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 ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-LS0GCTpjKCI.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.

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 it’s considered loan fraud.

addy bishop i thought what you just explained was a pyramid scheme. Didnt Bernie Madoff’s ponzi scheme not sell products?

Young_ Zombling_ I guess you’re right. Technically the product is a loan

Glad to hear it! I liked him.

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.

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 🤣🤣

Ian Lister well it was a stupid ass idea anyway.

Ian Lister 😂

@@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.

GUS*

This made me think of Gordon Ramsay 😂

WHAT?!

@@Candlewick14 Is there a certain word I used that is confusing? Or the entire sentence?

I’m 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. I’m out.

The Music is like MIB (Men In Black) music.

Did she take his arm or his leg?

Haha😂😂

I was just thinking the same thing

I was shocked when he admitted he needed a financial services license and he didn't have one.

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

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]

Ha ha ha

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.

Just because a person says it, doesn't make it true 🙄

Kim jong un, Putin and xi would like to disagree 🤣

@@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 “proving” anything, its a joke 🤣 and i know plenty about what corrupt shit and abuse of power is happening in those places 😉

@@Pilsnor aight i admit i didn't get u were sarcastic i will take that L gladely and apologise😂

@@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.

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.

RU-vid

Congrats. I read all the eilif explanation comments and I'm still clueless

Please explain it 😂

@@MizJazzyj14 I am honestly not confident enough to explain it. 😕 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 💀

The jokes are actually in reference to Jenny on Dragons Den

Which episode? I'm curious

I wanna watch that 🤣

@@Jennifer-qk1fb I think the company was “Tycoon Realestate”.