Investing in a new note
Hi guys, I'm a new investor.
A guy I met at a REI here in Minnesota is creating a note and looking for $7000. That money is going to be placed in a Trust. He's given me an excel spreadsheet for a payment plan. I'm the first to be payed. I will get my first payment on June 1st of $1100. I should be paid in full within 6-7 months. I'm not sure if it's a pool or not. I didn't know what questions to really ask him, but what happens if the person doesn't make their payment? Am I sure to get my money back? The ROI is around 20%. I don't remember what the interest rate is, but if I get paid first, I will receive the payments with the highest interest. I just want to make sure I'm not getting screwed. I'm def in over my head. He said that I could do $2000 as well with a ROI of around 39% if I wasn't comfortable investing $7000.
Any feedback would be much appreciated!