Here's the thing about this kind of loan. Its like the junk bond market for corporate debt. When things are good, as they have been from 2009 until today, the

Here's the thing about this kind of loan. Its like the junk bond market for corporate debt. When things are good, as they have been from 2009 until today, then you can roll debt over and these high risk, high return loans look like a goo investment. When things go bad, people stop having access to capital to roll their loans and it isn't one loan that goes bad, its the entire sector that goes bad. The problem with this lender is that they can't show data for a period like 2008, when there were defaults all over the place. That's not their fault as they weren't around then but its something to keep in mind. if you are getting above average return for loaning money then you are by definition taking above average risk. Ask banks in 2008 how having their loans secured by the property worked. When someone defaults on their loan it isn't always because they can't pay, its often because the property is worth less than the loan value on it.