Is Promissory Note for rehab a feasible investment vehicle?

[Yan Kang]

Hi there, this is Yan. I am wondering if a Promissory Note between individuals (one lends to another via a Promissory Note) a reasonably safe way to invest. How to ganrranttee the fund is paid back? Will a Promissory Note secured by a collateral like Mortgage be safe enough? Please advise. Any inputs are appreciated. Thanks. Yan

[Zak Parks]

Yan Kang promissory notes are usually unsecured, basically meaning you guys just go to court if the note isn't paid. However, you can ask for a secured promissory note that pledges a hard asset as collateral(doesn't have to be property).