IE represented the B ball player and us. had great reporte' with Wells.. who we cramed down.. we could not have done the deal without her help.fast forward.. we bought it for 1.7mil.. put 1.3 million in it.. and she sold it to a buyer she had in the wings for 5mil the day it hit the market.. . so for her she made 6 points on the 1.7 mil sale to us.. she was instrumental in working with our designer throughout the whole process.. and then we paid her 3 points to sell it to her buyer.. so on that one transaction she made about 550k.. in commissions. it was 12 months start to finish. 

They choose to do that because they felt the bubble had further up to go and they wouldnt be the one left holding the bag when the music stopped.

The problem lies in brokers/intermediaries who try to put these instruments into a borrower's hands often by leasing them.

Evafla,Truly safe investments include bank CD's and US Treasury instruments.

I had flash backs of the 90's... boyz 2 men, color me badd, c&c music factory, etc...WORD UP!

@Mike LandryWhat kind of instrument did she sell it with?  

While this might be true if you're located in Delaware or Illinois, substantial uncertainty exists as to whether the subsidiary LLCs within a series LLC are truly separate judicial entities, or merely financial instruments.

Being nice however is not to say I'm naive, so I'm trying to determine an acceptable interest rate that won't work against my own interests as an equity partner but also allows for an acceptable return on my money.In trying to determine what was reasonable in this circumstance I realized that outside of some accounting and finance classes in college, notes; bonds; and other debt instruments are pretty foreign to me in this context.

The IRS has a minimum, called the "Applicable Federal Rate", which is updated every month for short, medium and long term debt instruments secured by property.

They do with it what any other investor does with any other financial instrument; either keep it for the cash flow it provides, or resell it for a profit on the spread.