Posted by Sean on April 21, 1999 at 17:37:59:
I was browsing through an auction site recently where some guy posted that he needed $2,500 today and offered to pay $7,500 in three years. He needed the money for a car and was in school to become a neurosurgeon. Since the guy basically admitted his credit was poor and he couldn’t get normal financing I wasn’t tempted to give him an unsecured loan.
It got me to thinking, though about legal aspects of the situation. Was he selling a security by doing that or would it be considered me giving him a loan. I was thinking how cool that could be if you could just post on an auction that you needed $1000 or so and agreed to provide notarized copies of various things and a credit report with a good FICO score. As an amusement I posted an auction offering $1000 in a year for cash today and started the bidding at $800.00 and I’ll see how it goes, but just wanted your take on any legal issues. Thanks.
Also, you’re a hard money lender, right? Do you have any books out on that subject?