I connected with someone that I don't know personally who was looking for an investment partner.  He is a broker but can't get qualify to cover the purchase of a property he wants to fix and flip.  First we thought we'd be 50/50 partners, but then it seemed too complicated and we don't have the same risk tolerance (he doesn't want to get it inspected).   So... he wants to borrow 100k for a 10% return.  I'd get 10% no matter how long the turn is up to a year.  Yes, we'd draw up legal documents and the house would be used as collateral.  Here are my questions.  How much do I get charged in taxes?  Is it the same as ordinary income?  Has anyone done similar?  Is this a good use of my money?  I've been trying to find a better real estate investment but can't find any deals anyway.  Any guidance would be appreciated