Is this a loan or an investment?

[Jacob Yates]

I have a private lender or investor, I am not sure what to call him, who has agreed to put 10% down for a 20% ROI paid out in 1yr intervals. I have two questions in regards to this:

1.) What type of lawyer should I get to draw out the contract and what is the estimated cost of hiring the said lawyer (I know it varies just a rough estimate would be nice.)

2.) How should this be classified is it a loan, an investment? Or even a partnership I highly doubt it would qualify as a partnership as all the lender is doing is lending the money. 

My issue with calling it a loan is it isn't calculating out interest, as it is a one time calculated 20% paid back on top of the original invested amount.

Thank you in advance for any input.

[Jon Holdman]

Yes, that's a loan.  The loan amount is $16,000.  Payment is $3840, paid annually.  It amounts to an annual percentage rate of 2.86281%.   Great deal for you!!!

pmt #	payment	interest	principal	balance
-	-	2.86281%	-	$16,000
1	3480	$458	$3,022	$12,978
2	3480	$372	$3,108	$9,870
3	3480	$283	$3,197	$6,672
4	3480	$191	$3,289	$3,383
5	3480	$97	$3,383	$0