Is this a Ponzi scheme

[Mack Bailey]

I was listening to a podcast and a scenario came up where a private lender promised a return after 5 years when the house was refinanced. The re-fi didnt go through and he didnt want to sell. Could he take on another investor to pay off the first?

[Simon W.]

Yes, he can take on another investor. But I do not see how someone would get another investor if the house can't be refi. Typically when a refi doesn't go through it is because the value of the house is not good high enough. I would assume the private lender has the house as collateral and can foreclose on it.