Updated almost 10 years ago on . Most recent reply
Is 6% a good rate for being a silent partner?
A developer I vetted has invited me to invest in his projects as a silent partner paying 6% interest with monthly payments.
His projects are socially responsible, which is important to me.
Is 6% a good rate? Someone in another thread mentioned they were getting 9% so that made me wonder.
Thanks for your tips!
Most Popular Reply
absolutely not. 6% should come with relatively low risk.
Development deals are very high risk. Why do you think sophisticated lenders like HMLs take 12 to 14% plus 3 to 5 points for that kind of deal? The only thing green about this is the developers profit while he puts the risk on you. Just say no