Go or No Go? RAL Seed Money Lending

[Paula Willis]

A fellow investor approached me about loaning him money for his RAL (Residential Assisted Living) startup.  My question:  Is this a good deal or a not-so-good deal?  Terms offered are below. Thanks to all for your input!

Loan Amount:  $45,000

Annual Interest Rate: 15%

Term: 5 year amortization schedule

1st year only one payout, interest prepayment for that year, paid at the time of initiation of the note ($6,750).

1st year investment $45,000-$6,750 = $38,250.

Monthly payments commence at the beginning of the second year, continuing from month 13 to month 600, in equal installments of $1,252, until the loan is paid off at the end of month 60.

No Collateral.

What do you think? Go or no go?  

What info do I need to answer?