Promissory Note gave for cash loan

[Kevita L.]

Hi all,

I'm not sure if this is the forum to ask this question but I'll proceed.

I was contacted by a friend of mine who wanted to include me on a 20% return on a cash quick loan done thru a promissory note. So this is what I was told.

The investor is a real estate investor who does flips in New York and acquire 80-90 % hard money from a lender and funds the rest of their projects thru short quick loans in cash from a group of people. The money will be returned in 15 business days and will be 20% in interest if all of the required funds were given.

Ex. Need $176,000 in 2 days, if group acquire all of the funds they will receive 20% in interest of the money loaned.

Payout scenarios

Payout is given once they take ownership of the property and money is then taken from the renovation to pay back to them.

The property can be sold to a wholesaler.

I see a lot of red flags and I declined but want to hear what BP though. I've never heard of the investor and nothing comes up thru my search. Looking for to your response.

They will pull equity from the property thru refinance from the bank.