A friend of mine has asked me to loan them $20k (nearly my entire current savings) to help them purchase a house to fix up and sell. They were able to get the bulk of the money they need through their own savings and a loan but they are short $20k.
They are willing to pay me 5% interest for 6 months on the loan.
I know they will pay me back if they can fix up the house and sell it, but my concern is that they might not be able to sell it. The house is worth a lot more than they are paying for it according to zillow. They state that the house just needs cosmetic fixes, but the asking price is a lot lower than zillow shows, and zillow shows that the house was last sold in 2016 for 60k less than the current asking price, while they are going to offer $25k under the asking price.
The friend took a class last year on how to buy homes, fix them up using contractors, and sell them, but they haven't managed to find a house before this. So it's their first time. I'm confidant they will be able to fix any problems, either themselves or with contractors.
Should I invest the $20k on this?
Submitted May 08, 2019 at 10:10AM by nosoupforyou http://bit.ly/2VmuB0r
