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Private Lending & Conventional Mortgage Advice

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Daniel Yoo
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Smart Investor or Predatory Lending?

Daniel Yoo
Posted Jun 30 2010, 02:10

I was talking with another colleague about a real estate project returning 30% on his money within 6 months. He brought up a point that for him lending his money to the project and getting 30% on his money could be considered predatory lending because of the high rate.

I countered that this he would be an investor, not a lender. His point of view was that because the house is being held as collateral on his money, that he's actually a lender and not an investor. Tomato, Tomatoe, Potato, Potatoe.

Thought this was an interesting point however and wanted to hear your thoughts on this.