What do you call this type of Transaction?

**Southern_Lenders** · 03-13-2010 02:24 PM

The banking dept declined my loan license application, and so I'm looking so other ways to give financing without needing to go through the banking dept... here is my idea. Is this a type of loan?

Example:

*John Doe needs a new roof on this house, and its going to cost him 12,000.

* I let John know that I can Finance the project 100%, for a very low APR, over the next 3 years

* I pay ABC Roofing Company the 12,000 it will cost them to do the job on Johns house, and in return John pays me a monthly payment.

I would use a promissory note, and use Johns house as collateral if he stops paying.

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So from this example I didnt loan anyone any money, I simply paid for the project to get done, and John agress to pay me back the amt + a little extra over the next few years...

**GlobalWealth** · 03-13-2010 03:51 PM

A collateralized hard money loan.

**noob** · 03-13-2010 05:36 PM

Idea has already been done. Check out Prosper.com

**Southern_Lenders** · 03-13-2010 07:09 PM

Prosper is peer-to-peer lending where I lend money to someone, and they make payments to me, and prosper acts as the middle man...its slightly different.