Private Money Loan

[Chris Daliani]

Hello All,

I have a best friend who buys and flips homes. He usually uses hard money loans for the projects.

He currently want to purchase a complete gut home and we were talking about me possibly lending him the cash for the project for a return. 

As of now it looks like I would lend 200k for 10% return in 1 year or less. 

This is my first time at this. What should I be concerned about or do before agreeing?

Thanks!

[Bob B.]

You might get a good return on your money but you have a good chance of loosing your "best friend"

I would never borrow or loan money to my best friend.  I can always make a little more money but it's a lot harder replacing a friends. I would not do it.