Originally Posted by
Mad Dad
druff just said this person had a good reputation in this community at the time the BAP was being set up. I think many people shared that perspective - not counting person's with what could be called insider knowledge. One might expect the person's partners to perhaps have inside knowledge and any one holding debt from the person selling the BAP.
So, my question in thinking to the future, is how is a potential investor in a BAP, a person that is in the same community, expected to know that the advertised lead investor in the BAP is actually putting no money whatsoever into the BAP and instead rolling debt into it - unless the lead investor and / or the BAP seller discloses this to the community. Also others were doing the same thing - that us rolling debt into it. I know from my perspective, had this BAP been advertised as "A few of this community's debtees along with the person selling the BAP are welcoming fresh money into a BAP so that the debtor can try to earn the debtees money back and also make some money for the new investors" - that this would not have been nearly as attractive sounding as the BAP was presented on this forum. I wonder if it had been presented this way, especially with the lead investor not actually putting any cash in, whether it ever would have gotten off the ground.