Is 6% a good rate for being a silent partner?

Is 6% a good rate for being a silent partner?

Point Roberts, WA · Member since 2015 · 102 posts · 18 votes

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!

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Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
11y

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 

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