The Money Mustache Community

Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: chiefsuave on June 12, 2019, 07:38:21 PM

Title: VTSAX vs. Rental Op
Post by: chiefsuave on June 12, 2019, 07:38:21 PM

Also: not short on cash or savings. Just curious.

Title: Re: VTSAX vs. Rental Op
Post by: Another Reader 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.

Title: Re: VTSAX vs. Rental Op
Post by: Freedomin5 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.

Title: Re: VTSAX vs. Rental Op
Post by: jamesbond007 on June 13, 2019, 11:41:22 AM

"...guaranteed..." That's the problem right there.