Several years ago, you ran into your cousin who owns an insurance agency and is known for giving his clients great investment advice. He tells you about a wonderful investment opportunity:

An enterprise that owns a multimillion-dollar portfolio of real estate in South Florida. He shows you a glossy brochure of office buildings, mixed-use, commercial and residential real estate. The enterprise, which your cousin says has a track record of success, is raising money from new investors to fund the acquisition and development of additional properties throughout South Florida, securing capital by issuing short-term six to 12 months promissory notes, offering rates of return between 12% and 24% depending on the size of the investment/loan.

This opportunity sounds too good to be true! But, your cousin tells you that he has invested over $250,000 in the enterprise and has already received $100,000 in returns, AND several of his clients have also made investments and all of them have received substantial returns.

“You would be crazy to miss out on this opportunity,” says your wise cousin.