Private Money Lending
I had lent out some money to a developer at 24% [2% per month] over the year and a half. Every month around the 7th I’d get my 2% like clockwork. Easiest money I never had to work for! The money was secured by a trust deed on the property.
Sadly those days are coming to an end. I was notified that he was either going to refi and pay us off or put us on some other scheme where we get 12% plus 20% when the project is completed.
Since I’m sending my mom some money to buy an apartment, I opted to get my money back. But it was good while it lasted. But in a few months I’ll be selling one of my houses and freeing up some capital and will have to look for more ways to get a good return.
I’ve also given some money to a developer in Arizona. He doesn’t pay any interest but after 18 months starts paying us off at the rate of 80% total ROI. Its been a year already. Hope he doesn’t go BK on me!!!!
Anyone else doing private money lending?
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September 30th, 2006 at 2:14 am
Just remember, the return you get on an investment varies with the risk. More return equals more risk, no exceptions. Good luck
September 30th, 2006 at 8:34 am
If you count the private lending through Prosper.com then yes. I’m not really lending any real money through it yet, but thus far I’ve gotten a very good return. As the previous commenter mentioned, there’s always a risk.