Hey!
I am wondering if any people here have ever considered lending small amounts of money to individuals (family or other) as a side gig?
It seems like there are quite a few opportunities either with family members and there are also many classified adds from people looking for small short or mid term loans from another individual.
I don't know if it's the same everywhere, but where I am from, some small companies will lend to money between 27% and 32%/year, which is already quite high, and on top of that they usually charge some king a management fees. Basically, a 1500$ loan can quickly become close to 2500$ to 3000$ which is crazy.
What if I could lend this person the 1500$ with a lower interest rate? This could be interesting for both parties. Of course, that would include a contract and a meeting with the person to make sure this a trustable person.
Even then, I know there's a risk the person wouldn't pay and I'd have to prosecute the person in order to eventually get the money (which would probably cost more than the gained interest rate). I just think if you can find the right person, in the right situation, why not?
Any people here have ever done this or have comments?
*Obviously, the typically low amount of money asked would result in low interest gains, so someone with a big 'stache, the risk and work associated wouldn't be interesting. I am asking for someone beginning its MMM journey.