Is Harbor City Capital Legitimate
Is harbor city capital legitimate

Is Harbor City Capital Legitimate


A lot of people have asked ‘Is Harbor City Capital Legitimate?’ Our CEO Jp Maroney did an interview with a current investor who has invested into 3 rounds of our bond offer and talks about ‘is Harbor City Capital legitimate’. David is an accredited investor and has a broad portfolio of many types of investments and explains the why he feels Harbor City Capital is legitimate.
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JP: 

So tell me a little bit about who you are and what you do.

 

David: 

So, uh, I’m originally from New York, Westchester, New York. Um, I went to school at Northeastern, studied education that’s in Boston, Massachusetts. And then I went on to earn my master’s at Manhattanville college in purchasing New York. Uh, my master was in business, so I used to be a teacher for the first part of my career and I’ve moved over to business investment advising, employee benefits, property casualty insurance, uh, finance business investing. Um, that is what I do full time now and I’ve done that for roughly 10 years. Okay. Actually that is passionate about, I have my own portfolio and obviously I’m looking for investments. Um, I’m a high yield, uh, income investor.

 

JP: 

So that brings me kind of to the next question. Um, can you mind talking to a little bit about the types of things that you invest in?

 

David: 

Right now? I have my own portfolio. I manage it broker managers that I invest in closed end funds. Closed end funds typically can borrow money and they use leverage to generate higher yields. Um, there can be a technology closed end fund with Microsoft, Apple, Qualcomm, what have you. And if you were to buy those stocks separately, the average yield might be two, three or 4%. But in a closed end fund they can use options, calls and puts and other derivatives to generate eight, nine or 10%, um, returns. Uh, so I invest in closed end funds, also higher yielding rates. Um, reets are real estate investment trusts. And to qualify as a re they have to pay out 90% of their income to investors. So those are the main stocks that I invest in. I also have a couple personal rental properties that are yielding, um, high teens.

 

David: 

And then tax write offs are great for that as well. So those are the two main high yield investments for me. And then when I saw your bond at 18%, um, that is would qualify as a high yield and a very secure investment. I like how it’s secured by the industry that you’re in very low overhead, so that’s less liability for you. Um, I believe you rely on the technology more to do the work, um, to generate income and, and lead for you. So that’s less overhead as far as paying, let’s say a company with 5,000 employees, you’re not probably not going to be able to generate high yields because you have so much overhead.

 

JP: 

Gotcha. So how did you first learn about Harbor city’s bond or the investment?

 

David: 

So with uhm, and other accredited investors can attest to this. You kind of have your own okay. People you talk to at leads and other people that are advertising for you, other friends and word of mouth. Um, so I first learned about Harbor city through another investment. Um, I met with people out in white, New York. It was for a parking lot investment in Charleston, South Carolina. They learned that I was into higher yield. That’s not quite as high as the bond. Cause again, talking about overhead and liabilities, running a parking structure has a lot of fees and employees need insurance and what have you. So that’s 12%. And they suggested that I look into the Harbor city bond. I did my due diligence online. Um, I spoke to you, I think we first spoke in November, December last year. So it’s almost been a year and every, all the boxes were checked and I had enough experience and confidence to go into the investment. So that’s kind of how I heard about it through my warm market and word of mouth.

 

JP: 

Excellent. You know, it’s funny because you talk about being a high yield investor and obviously you’re a younger guy, so you can, in theory, if somebody just looks at practicality of investing, you could afford, if you had a reset or something, you could still make up for lost time. Not that you want to, but you kind of have a chance to take a bigger risk. But we, when we talked to people about this, we have folks that are as young as you saw, many even younger, and then folks that all the way up into new years of retirement that look at this and invest in this. And the high yield is one of the things that attracts them. But it’s also one of the things that scares people because they often believe that if something, you know, sounds too good to be true, it probably is. And so the high yield is a double edge sword. It attracts people at the same time. It causes them a bit of a pause of is this real? How did you sort of, um, or what would you say to that person?

 

David: 

That right there is a trust thing. Um, and I think trust comes over time and experience. So I don’t know, what would I say to them? I don’t know how to build that trust or that experience in a sentence or two. Um, the 18% yield is very good, no doubt about it. On my rental properties, I am going into the twenties. Um, there are some closed end funds that have 11, 12% yield. So, and I’m hard money lending. I believe we spoke about this when I first invested. It can go, I’ve seen hard money lending 12, 13, 14, maybe not right now, but a couple of years ago. So 18% is extremely good, but it’s not unheard of. Um, it’s high, but in my experience, I have come across these investments before and then learning your industry, um, how it’s targeted ad campaigns and you can use algorithms and lower costs. I see that you can generate these high yields, um, through other investors, through your campaigns and you don’t have a lot of overhead. So just knowing experience. Um, so basically to answer your question, what I would say to them is they need more experience if they’re questioning it, research, read and look at other high yield investments and then look at Harbor and see how they’re generating the returns. And it makes sense.

 

JP: 

So in other words, when someone looks under the hood and understands the business model, then it does make sense.

 

David: 

Yeah. So I would have to say, look under the hood, read the documents, do your due diligence with anything. I’m sure people have heard this a thousand times, whether you’re sure or not, but also get some experience in investing, whether it’s through real estate, different type of high yield funds. Um, I have some investments in wine oversees that do some great returns. So it’s important to diversify. And not just invest in your 401k or IRA and see 8% as amazing. It is a good return, but there are other investment vehicles that can, um, perform better than six, seven, eight, 9%. And they are out there and they work.

 

JP: 

Walk me through your investment due diligence process. How do you evaluate an opportunity like Harbor city or any other investment

 

David: 

as a credit investor? There’s certain type of documents and regulations that the investment on the other side has to meet when they’re advertising. So I look at that, I more look at their current investment that I’m going in. Are they legally compliant? Are they up to date with their due diligence? Um, if they’re sloppy on that side of their business, um, that’s a red flag for me because they’re not taking it seriously. They haven’t, they haven’t built the infrastructure of their investment correctly and it’s just really important to have, uh, legality, paperwork and all that straight. Um, it also means that they haven’t done their, uh, research as far as what it takes to run a successful investment. You might see Harbor city 18% and that’s all there is. But there’s a lot of work that goes into having a investment, um, only offered to accredited investors.

 

David: 

So that’s my first and then I look at how are they able to generate such returns? What is their business model? And, uh, we could talk for an hour about business models, but there are many different business models out there and Harbor city makes sense. You’re leveraging technology for the returns in my eyes. That is what I see. So that was kind of my due diligence. Um, when choosing Harbor city and my investment due diligence when it comes to stocks or real estate, um, investment properties, there’s a lot of moving parts. So quickly I look at is the a real estate investment? Is the home or condo or multifamily already tenanted? Is there property management in place? And how many, um, repairs have to be done? And then towards the end I might negotiate with the price. If repairs have to be done by ’em, buy it at a lower cost. And then when it comes to funds or stocks, I look at the manager, look at the company, how much debt they have. A dividend paying stock should not be paying more than 80% of their cashflow out to investors. Otherwise it’s, they might be under water

 

JP: 

and it’s tough to meet that in a recession. So there are certain metrics that I look at that I’ve learned over time. Um, my family is invested, so I, I am in my early thirties, but I’ve been around it for sentence. I’ve been conscious, so 25 years or so, uh, 20 years. So there are certain key phrases and metrics that I look at and I just named a few for you. That’s excellent. Um, now you have written some really nice things back to me in emails before you’ve volunteered to get on the phone with, I don’t even know. I’ve lost count. How many people, uh, you know, you’ve talked to that are interested in investing in you very graciously given your time. I talked to one guy, he said you were on the phone, 15, 20 minutes. I don’t know, maybe you’ve been on the phone longer with some people, but I’m, I’m a bit taken back. You’re taking your time out here. You’ve said I’ll get on a conference call or get on speaker phone with people. Why would you do that? Why would you take, I mean, we don’t pay you anything. Why would you, other than you’re invested in the, in the bond, but why would you take the time to do something like that?

 

David: 

Um, there’s a couple answers to that. The first one is not all investments work. So if an investment is performing and works, I’d like to support it in any way I can. Um, so that would be why I’m on the call today and why I’ll email back and forth or communicate because this investment’s working. I want to see at work. I hope there’s a fourth, fifth, sixth bond, maybe some other investment. Um, so it’s my way to support something that’s supporting me. Um, so what I do with the investments each time it comes in, um, if there’s something that I have to fix on my rental property or there’s a good dividend stock that’s at a dip because of, let’s say the China trade Wars, maybe a semiconductor stock overseas dipped or, or qual com went down because of that, then I have this liquid cash from this investment and I can buy it opportune times.

 

David: 

Um, I work in sales and, and with my job, you don’t get paid, um, you know, the 15th, the 17th of the month, every day. So now I know at that day I’ll have $1,000 coming in from your bonds and I can, I reallocate that into something that might be a little bit more permanent. So basically, I’m here today and I communicate to support the investment. Um, and also this might be a little selfish, but I like talking to other accredited investors because they have other investments that I don’t know about. So not only am I telling them about Harbor city, I’m building my own network. Um, so just full disclosure, I don’t mind helping Harbor city. I like talking to other investors, but I’ll share my other investments and they’ve shared their other investments and then I can do my own due diligence and research and look into that as well. I’m an accredited investor. They don’t grow on trees. So it’s nice to be able to talk to them once a month, once every two, three months. Um, whenever I have free time just to share, uh, and turning their questions and share thoughts and ideas. So that would be, I think I answered the question. Um, yeah, that, that would be the two reasons why

 

JP: 

when, when people come to you, and we’ve tried to be, um, very careful with you yourself and a few other of our investors have agreed to take a call or check an email or respond to an email or something. Um, we’ve tried to make sure that only people that are right there at the finish line and maybe on the fence about making that final step and making an investment. So you’ve got a history of talking to people at that level. Um, if someone were watching this video and they’re right there on the edge, trying to make that final decision, what would you say to them at this point? I know you mentioned trust. What else would you say to someone at this point to, to get themselves comfortable, um, or decide not to, but to what process would you suggest that they take themselves through, um, to get over the edge?

 

David: 

Well, if they’re hesitant or nervous or not comfortable, um, you want to mitigate that. So I would say go in for the minimum, um, up the investment, try it out. This is the third bond. So if you like it, um, again, at first I didn’t invest all of my money. Um, but um, here on the second one and here on the third one, cause I’m seeing at work. So my first advice would be come in for the minimum on the third bond or your first bond. Um, and then as you see the regular payments, I would say that you can allocate more funds. Um, also if you’re on the fence, I would say, look at the legal documents. Um, as a investor, they’re your ally. Uh, and there’s a lot to learn from them. And I’m sure that, uh, many people that are accredited investors have had their small business or maybe, um, inheritance from family or they’ve made money in certain ways and in their influence they have a legal team and lawyers. So you are protected that way. Um, so I would say have confidence in that. And then if you’re hesitant, obviously don’t overextend yourself and you can do that by coming in for the minimum for the first round. That’s what I do.

 

JP: 

That’s awesome. Um, what about the, just so that it’s out there and everyone knows you mentioned 15, 17, et cetera, cause you know, we issue those checks every month. This coming month we’re going to convert to ACH. I think everyone’s excited about that.

 

David: 

Don’t I like your lighter. Um, so that was exciting to see that.

 

JP: 

Yeah. Yeah. Yeah. So we’re excited. But, um, just as a confirmation you’ve, you’ve been in, you were in on the very first bond offering, which we’d been taking an outside investments for five and a half years by the time we offered the bond, but you’ve been on the bond one, bond two and now bond three. You’ve just made the commitment for that. So, um, you’ve been getting paid.

 

David: 

Yes, yes. The checks. Um, yeah, they, they come in regularly, uh, ups certified mail, um, package very nicely dressed nicely. A J P Morgan, Wells Fargo official checks. So when you deposit at the bank, if it’s not real, it’s not going to go through. Um, so everything is working out and that’s why I’m here and spending my time and that’s why I’m investing in the third one.

 

JP: 

How important is it do you think or what an advantage? Someone at one of my members of my team had said they get a lot of questions about investment fees and they’re always surprised that this investment doesn’t have any kind of load on it. Um, is that surprising to you or a an advantage that you see?

 

David: 

And I’m glad you brought this up because thinking about this, um, interview, this is something I wanted to touch on. And um, fees and costs to investments on the closed end funds, some will have two or 3% fees. Um, real estate. Now your rental property, it might have a 22% return, but a couple things have to go well for that to work, it has to be tenanted every month. There has to be no repairs. Um, no legal costs, no accidents, weather related costs. I remember on one of my properties, the shelves I had to fix last month and that was $80. So that cuts into the yield, not too much. But if you have two or three repairs throughout a year, that 22% yield might go down to 15 or 16% yield. If you’re real estate is, um, not rented for full 12 months, yes, it’s a tax deduction.

 

David: 

But again, you’re not, there’s a lot of variables that go into that true yield. So this bond, this 18% is a true yield. There’s no management 2% management fee that now brings it down to a 16% there’s no tenants or repairs for the bond that bring the 18% down to 12% one year and the next year you get 15%. So it is a true 18% yield and it is truly passive. And I am a passive investor. I think that’s, um, you can tell that by me trying to set up the high yield through other investments, um, and have them come in every month. So that’s, that’s the idea. Excellent.

 

JP: 

Is there anything, and whether we put this in the video or not, is there anything that you, over the last coming up on a year, um, have experienced that you would like to see us do differently or, um, any areas of improvement of the relationship or maybe even anything that you like about how the way we interact, et cetera.

 

David: 

I liked the communication. Every month there’s a letter. Um, so that’s, that’s nice. What’s up and coming? What might be down the future even when everything’s going well, it is important to have communication with your investments. I’m obviously, if something’s going well, you don’t need to communicate as much in my opinion. But the communication every month is very nice. Um, Betsy answers my texts or calls within 24 hours, sometimes at at work or, or what have you. Um, and they’ll take longer than a day, but this a passive investment and she gets back to you very quickly. Um, so those are the things I like. Um, I would have said, uh, having to go to the bank, it’s very small but to deposit the checks, but that’s not a worry come here next month. So that would be my one negative. Um, but it’s not a negative anymore, so that’s, that’s a great thing.

 

David: 

If there’s something that could improve it. [inaudible] and that’s why I’m invested in it for the third time. I really can’t think of anything except getting the physical checks. Obviously you have to take time out of your day to put them in the bank, which isn’t a big deal, but that would be the only negative and that no longer will be one. And I, and I think I’m overlooking something. Um, the monthly pay out a lot of investments. Um, I N I am invested in another accredited investor, high yield investments. Other investments pay quarterly or sometimes they pay at the end of the term of the investment. So there could be 15% over two years. Um, you might get a preferred payment when you invest, but then you don’t see a the other 11 or 12% after two years. So now you’re waiting four 23 months. And, um, I don’t like to do that. I like compounding, so the, the monthly payment is great.

 

JP: 

Excellent. I’m glad you brought that up. So, and that was, you know, it was funny because when we sat down and we’re putting together the bond, I literally made a wish list,

 

JP: 

everything that I would want in the ideal investment and what I had heard from others, from some of our longstanding clients, investors, they like the monthly pay out. They like the high yield. They liked the fact that we’ve collateralize it and secured it. Um, they, they like a lot of the factors about it. Um, one of those with the monthly checks, physical checks and AU seeing is believing. And so when we did the bond, I really wanted people to have to personally in interact with that money and realize that it was happening on a monthly basis. But I think that the hassle factor outweighs it. I mean [inaudible] might have to go to the bank and put money in the bank, but I do get that it does take time. And I even talked to one of our investors who was in one and two and just came back for three as well.

 

JP: 

And he’s a, um, that he had like one or two checks that he hadn’t even deposited yet because you just had not to the bank to deposit them. So I’m excited about being able to do the ACH. We’re still going to provide a state work. We’re still gonna mail a letter. We’ll probably even hit people with an email or a text letting them know that the ACH deposits have been fired off. And that way people can know to look for them. But yeah, it’s exciting and I appreciate the feedback that you’ve given. Anything last that you would say? Just anyone’s out there. They’re considering this investment. They see this on YouTube, they see on Facebook, a friend mentions it and they go to the website, they’re coming in cold. Anything that you would say to that person that you haven’t already said or maybe that you could summarize?

 

David: 

They have to do their research. I don’t think anything that I can, one thing that I can say is really going to tip the scales. Um, if you’ll listen to this interview in its entirety, um, do your due diligence on the Harbor city bonds and you have to know about the technology and the industry that Harbor city is in. Um, if it costs $5 to make something, but then you can sell it for $30 and you’re receiving funding, there’s a big spread there that you can hand off to the investors that helped fund your next campaign. Um, and when you invest in mutual funds, there might be something called a spread, uh, two or three points. So that goes to the management committee here. I like to think about it, the spread of cost and what you make goes to the investor. Um, so that would be my one thing of how in practicality, how you’re able to return 18% in this industry. It’s a great arbitrage situation. Um, and I would have to say that if you are skeptical, again, come in for the minimum and if there are any problems, um, I’m sure that people know that, uh, the law is on our side, so there really isn’t too much liability, um, going into this to be honest.

 

JP: 

Excellent. David, thank you so much. Um, and I appreciate you being on here. I’d love to talk to you for a couple of minutes after we finish up, but just on behalf of myself and the team here at Harbor city, I really appreciate your taking the time out of the day and sharing your experience with us and within investors out there who are considering this opportunity.

 

David: 

No problem. I hope it helps.

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Watch the interview answering the question if Harbor City Capital Legitimate on YouTube
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