Transactional Funding? Risks And Rewards?

[John Thedford]

I have been doing some HML with my SOLO 401K. So far, the returns have been great. My most recent loan is supposedly paying off early next week. If that materializes, the APR will be huge. I did the loan a little over 30 days ago. The terms were 12% plus 4 points. If he does payoff next week, the APR should be well over 40% per anum. No complaints there! I am now considering transactional funding. I see they often charge 1%-2% for one day. As good as that sounds, I am concerned with the potential risks? Any input from people with experience? Thanks!