How to Avoid Getting Ripped Off as a Private Money Investor?

[Max McCann]

I am new to REI, so please forgive me if I am not using the right terms.

A friend of a friend does fix and flips in NJ and offers private money investors a 12% return with a $25K minimum investment. Does anyone have tips on how to determine if this is a sound investment? Does the interest rate strike anyone as suspiciously high or low?

For what it's worth, he is a close friend of someone who I consider a close friend, and my friend has invested with him and received consistent returns for two years.

Thanks BP community; you are truly wonderful!