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I am pondering on whether I should pursue this investment. I have a guy who wants me to invest only $1,000 dollars with a contract that I'm guaranteed 600% ($6,000) the same year, no questions asked.

I figured that it's not much money, and the contract certifies repayment. So what could go wrong?

The guy I'd be investing the money in/giving the money to would be considered a loan with guaranteed repayment. He says that the money is put in to businesses and further lent to others and multiplied easily. He says that nothing can go wrong because it's a written legal contract that he has to pay.

Would there be any loss in doing this? If he doesn't pay, suing is a very easy and remedial solution.

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    Expect to lose your money. Nobody is going to randomly offer you that kind of return. This screams scam. A written contract is no good if he skips town after signing it with a false name. – keshlam Feb 6 '17 at 22:38
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    When you sue someone and win, the court gives you a piece of paper that says, (I'm paraphrasing) "Yep, that guy owes you money." That's all. – quid Feb 6 '17 at 22:39
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    If this really worked... like ever... everyone including me would be giving him our life's savings and retiring next year. Definitely a scam. – maplemale Feb 6 '17 at 22:40
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    @PeteB. This is basically a question asking if an investment is a scam. That is a legitimate question, even if OP happens to be a little naive about it – Nosrac Feb 7 '17 at 12:38
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    Here, eat this poison which will kill you. But don't worry, I have magic powers and I'll sign a contract promising to bring you back to life. – TTT Feb 7 '17 at 19:18
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Lawsuits are only effective if the entity you are suing still has the money after the suit makes it through the courts. In the US, this dollar amount would place you in small claims; even if you get a judgment, collecting is another thing entirely. You can attempt to garnish wages, levy a bank account, or put a lien on property, but those processes also take time to complete (assuming you know enough about the debtor to proceed).

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    Yes they all take time and also money, so one would be throwing good money after bad money. Definitely a lose-lose situation for the OP - in his own words "So what could go wrong?" - well you would lose your $1000 and possibly more. – Victor Feb 6 '17 at 22:57

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