Replies to post #20399 on Avvaa World Health Care Products Inc (AVVH)

[Divest]

The same way any bank would make funding funding loans make money, by selling debt to investors. From the PR:

The primary purpose of AVVH/Gold Quest Capital, Inc. will be to act as the funder of choice for highly collateralized real estate first lien notes and real estate investments sourced and originated by the Gold Quest Group, LLC. AVVH/Gold Quest Capital will also take advantage of select real estate redevelopment projects and is evaluating the possibility of creating its own integrated properties, including branded hotels and resorts, in the future.

Gold Quest Group will sell loans to borrowers and Gold Quest Capital will sell the funding packages of those same loans to the their existing network of investors without needing a bank, and since AVVH and its investors are investing in "highly collateralized real estate first lien notes", AVVH and it's investors would be the first to get paid if there was a default, so their risk should be low.