Poll

Keep $30k into VTSAX or provide some hard money lending for a rental opportunity w/ a guaranteed return of 20% within a year?

VTSAX
13 (92.9%)
Rental
1 (7.1%)

Total Members Voted: 14

Author Topic: VTSAX vs. Rental Op  (Read 268 times)

chiefsuave

  • 5 O'Clock Shadow
  • *
  • Posts: 30
  • Age: 25
  • Location: US/NNY
VTSAX vs. Rental Op
« on: June 12, 2019, 07:38:21 PM »
Also: not short on cash or savings. Just curious.

Another Reader

  • Magnum Stache
  • ******
  • Posts: 4949
Re: VTSAX vs. Rental Op
« Reply #1 on: June 12, 2019, 07:48:20 PM »
No returns are guaranteed.  If you have no experience in hard money lending, I would skip this deal.  If the deal were any good, they would be borrowing money cheaper from someone else.

Freedomin5

  • Handlebar Stache
  • *****
  • Posts: 1834
  • Location: China
Re: VTSAX vs. Rental Op
« Reply #2 on: June 12, 2019, 08:05:38 PM »
If it sounds too good to be true, it probably is. If they have to borrow from you at 20% interest, it’s because the banks and nobody else in the business will lend to them. That means that there likely is a huge risk attached to the opportunity, which means that their “guaranteed” return is a lie.

jamesbond007

  • Bristles
  • ***
  • Posts: 454
  • Location: USA
  • One penny at a time.
    • I'm raising $3500 for the Arthritis Foundation.
Re: VTSAX vs. Rental Op
« Reply #3 on: June 13, 2019, 11:41:22 AM »
"...guaranteed..." That's the problem right there.