2 Answers

I bought my house through a private lender. It was a simple contract , 10%interest paid monthly. I paid $20K down on a $55K purchase. I paid $440.00 per month minimum and any extra I could. The first few years were mostly interest payments…just a little on the mortgage each moth. Over the course of years with, a few extra dollars thrown in, the house was finally paid off before our latest national real-estate disaster. The banks would not loan on the house because it was not up to code or I could have gotten 4.5% interest. The person who loaned the money to buy the house owns many homes in the area that are rented out. He is considered a slum-lord but I kept my agreement and paid as I should. Now I pay no rent as the house is paid for. But there are repairs and maintenance, and other expenses. I have no complaints and now own it free and clear. When a person cannot keep up their payments they default and the property is foreclosed on.

12 years ago. Rating: 1
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I'd be very careful heading down that path. If you're familiar with something that you like doing, why not try opening a small business that you know has a good chance of succeeding. Or, if you are really stuck on the idea of lending money, you could always open up a pawn shop. The level or quality of the shop would all depend on how you run it. You could have a nice place that deals in quality items, or one that deals with someone's junk...but, that choice would be up to you, and how you want to present your business to the community it's based in. With computers these days, it would be easy to find the value of things and what you'd want to pay out...and it could be an interesting venture in what you'd run across on a daily basis.

12 years ago. Rating: 0
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