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Updated 2 months ago on . Most recent reply

User Stats

53
Posts
25
Votes
Jim Stanley
  • Denver, CO
25
Votes |
53
Posts

Anyone invest with a hard money lender (lend to them to get interest)?

Jim Stanley
  • Denver, CO
Posted

I have twice invested $50k with my hard money lender's investment fund. 

I gave them $50k and they lent it out to flippers to make a profit and paid me interest on it.  It worked out fine, though each time I got a little less than advertised interest rate (about 9% vs 10%) and I had to send a reminder email to to get my money back, but I did get it back.

I ask about others' experience, because I'm still not 100% sure it's not a ponzi.  Sure they paid me both times, but that's exactly what a ponzi would do.

Thanks

  • Jim Stanley
  • Most Popular Reply

    User Stats

    1,608
    Posts
    1,070
    Votes
    Jay Hurst
    • Lender
    • Dallas, TX
    1,070
    Votes |
    1,608
    Posts
    Jay Hurst
    • Lender
    • Dallas, TX
    Replied
    Quote from @Jim Stanley:

    I have twice invested $50k with my hard money lender's investment fund. 

    I gave them $50k and they lent it out to flippers to make a profit and paid me interest on it.  It worked out fine, though each time I got a little less than advertised interest rate (about 9% vs 10%) and I had to send a reminder email to to get my money back, but I did get it back.

    I ask about others' experience, because I'm still not 100% sure it's not a ponzi.  Sure they paid me both times, but that's exactly what a ponzi would do.

    Thanks


     I would be mortified if any of my investors even had a thought in the back of their head that I was running a Ponzi scheme. You should never had to chase your money and should get an explanation if the return is less then promised. It happens but you deserve to know why so you can make an informed decision if you want to invest again.

    • Jay Hurst
    business profile image
    Hurst Real Estate, INC
    4.9 stars
    75 Reviews

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