116K Loan: $8400+ Interest In 109 Days--Recent HML Payoff

[John Thedford]

The numbers aren't huge, but when you get enough loans out making these kinds of returns they can really help build your wealth. This may pale compared to a flip but these are two different strategies with different risks. In this loan, the borrower put down about 30% of their own money, rehabbed, and sold. It could have happened quicker or much later. On an annualized basis the return is strong. As I have mentioned in other posts about becoming a HML, often the borrowers will come back and use you again and again. Not only did this pay off yesterday, but the borrower called today asking for the money back next week. I said SURE! So, if you are considering an investing avenue, if you have not considered doing HML, maybe you should.