Investing in a new note

[Jestin Sorenson]

Hi guys, I'm a new investor.

A guy I met at a REI here in Minnesota is creating a note and looking for $7000. That money is going to be placed in a Trust. He's given me an excel spreadsheet for a payment plan. I'm the first to be payed. I will get my first payment on June 1st of $1100. I should be paid in full within 6-7 months. I'm not sure if it's a pool or not. I didn't know what questions to really ask him, but what happens if the person doesn't make their payment? Am I sure to get my money back? The ROI is around 20%. I don't remember what the interest rate is, but if I get paid first, I will receive the payments with the highest interest. I just want to make sure I'm not getting screwed. I'm def in over my head. He said that I could do $2000 as well with a ROI of around 39% if I wasn't comfortable investing $7000.

Any feedback would be much appreciated!

[Travis Sperr]

don't do this deal. It likely isn't secured and anyone looking to borrow such a small amount is either not savvy or broke. Also no one would pay that type of return unless they were in trouble. You need more experience before you consider lending your money to other investors.