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
14 (93.3%)
Rental
1 (6.7%)

Total Members Voted: 15

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Author Topic: VTSAX vs. Rental Op  (Read 1539 times)

chiefsuave

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VTSAX vs. Rental Op
« on: June 12, 2019, 07:38:21 PM »
Also: not short on cash or savings. Just curious.
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Another Reader

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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.
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Freedomin5

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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.
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jamesbond007

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Re: VTSAX vs. Rental Op
« Reply #3 on: June 13, 2019, 11:41:22 AM »
"...guaranteed..." That's the problem right there.
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