Alternative investment | General comparisons | Discussion forum

Jon said

I browse the web a few times checking any cool trend in the investment world and find investment in forest, shipping container, hotel room, self-storage unit etc. I want to know hoe you guys feel about these type of things.

As far as I can understand, they seems to be very little regulation, which make fraud possible.They also seems to have little to no liquidity and make be difficult to understand for a person that is an outsiders of the field.

Never hurts to see what you come up with. Likely for a risk taker...maybe not. I know years ago you could buy a box car and rent it to the railway. The railway would charge the owner for maintenance though. I can see some risks here. What if your car caused a derailment? With so many parked on side lines in the USA ...makes one wonder. And today box cars would not be the pick....maybe a grain car or a flat car for containers.

I have known one of the members of the Board of Directors of CSI personally for about 40 years, and trust that person's judgment in this type of enterprise. I realize that people reading this don't really know who I am, but you have my numerous posts to give you an idea of my perspective and priorities.
It's an exciting project. These are bonds, not GICs. The organization has been supported by Alterna Credit Union, which has several branches in Toronto, and they are trying to wean themselves off that by getting private investors. I don't know what they intend to do when the GICs come due, but neither have I asked.
Still, I think this is the sort of investment that you make if you strongly support the cause AND you have enough money that you could afford the loss if it came to that. I don't know enough to know if you would have a claim on the property if they couldn't keep up with the bond obligation. I would consider investing a small amount in it, but I have not really looked into it. I would look at it more like a donation, part of my charitable budget, and if the bond did come through, then I could afford to invest more another time. If I didn't look at it that way, I couldn't do it, as I'm too risk-averse.

There is a group with similar values which is trying to get money to start a project to convert waste from the animals at Metro Zoo into fertilizer. I forget the name but could look it up if someone was interested. I recall that they pay around 7% but am not sure. They had a booth at the Zoomer Show in Toronto this Fall.

These things are all riskier than GICs, not for everyone. I really think it works best for people who really want very much to support the cause and can afford the risk.

Bullfrog Power is another one, in Ontario, that has been around a bit longer and is involved in producing alternative energy. I think it's windmills, not sure. I am not sure if they are looking for money right now.

Despite the risks, I find these projects substantially more worthwhile than the projects that get paraded past us on TV on Dragon's Den, looking for venture capital. Most of them seem to involve the invention of things nobody really needs, and are mostly about making money, no matter the cost to the environment etc. I would prefer to invest in things that can really make a difference and contribute to a sustainable future. We have to start somewhere!