F.A.A.R Investment Corporation

This company offers a variety of real estate and investment related services. According to the company's website, they also offer Private Company Investments with a high yield return up to 48% annual. For example, on a $5,000 investment the company claims to pay earnings of $200 per month. The promise of above-market returns, or returns that are higher than those of similar investments should raise questions.

We also reviewed the company’s sample contract form on their website. We are concerned with the number of conditions contained within the agreement and also that it is not securitized by any specific asset. Your risk is that the issuing company will not be able to make principal and interest payments. Since risk and reward are intrinsically related, it pays to remember that there is no such thing as a low-risk, high-reward investment. We believe that offers of this nature would be considered securities investments in California. California law requires companies offering securities investments to register their offer with the State, or file an exemption.

Careful evaluation of all investment offers should be done prior to signing agreements. Rather than make an immediate decision, insist that the caller confirm details of the offer and all verbal promises in writing. Offers claiming to be exempt from registration must meet specific requirements. Generally, if an offer is sold via telephone or offered on a website, it is an indication it would not be qualified for exemption under current law.