In my opinion, it doesn't sound like a bad deal.10% is more than you would get in treasuries and corporate bonds36 months is not a super long period of time.Seems like you are protected with 1st position.I would just do some background on the company - How long have they been in business, financials on how the company performed for the past 2-3 years, along with some background information on the sponsor/founder of the company.Best of luck.

Yes I suggest using an LLC to protect your investments!

Harvest that equity that is doing absolutely nothing for you.

They can guide you on the most cost-effective and efficient path forward to protect your interests and ensure compliance with legal requirements.Feel free to reach out if you have any other questions.

Long story short we do not have much protection in NJ, collecting full security deposit is a must. 

The way we look at it however is this sort of situation would be OK - but its a one time referral fee - any sort of arrangement with a long-term referral fee / borrower protection is reserved for true professional mortgage brokers - who like @Chris Seveney mentioned, would be doing more legwork on the deal vs. a simple and clean referral handoffvia CFPB on referral fees for business-purpose hard money loans:§ 1024.5 Coverage of RESPA.THIS VERSION IS THE CURRENT REGULATIONView all versions of this regulationSearch this regulationRegulation X(a) Applicability.

Why be in the landlord business if the protections are few and the risk is high with low returns?

Hence, greater protection from title theft, which was the original point of what I was responding to.Yes, judges can order disclosure.

To protect yourself, you need a specialist.Just like you wouldn’t go to a cardiologist for a brain injury, you shouldn’t rely on a real estate lawyer for loan docs – unless this is their specialty.

Issue with ALL the new tenant-protection laws being passed is that they put 100% of everything new on the landlords - while not holding tenants accountable for anything new:(So, a tenant can still move out and break a lease whenever they want, with little repercussions.