I have recently had some success making private loans to individuals with lots of equity in a real estate property that, for one reason or another, cannot qualify for conventional financing. This is not a new idea by any stretch of the imagination but the returns can be very healthy. Here is the anatomy of my last deal: The borrower inherited his father's house and needed money for his business. The house was free & clear and appraised at $400k. He needed $132k, which I lent to him from my savings at 10% plus a fee of $1,320. The borrower was required to purchase title insurance (which protects me from any liens that weren't apparent at funding but had a claim superior to my loan), homeowner's insurance where I was made a loss payee (house burns down, I get money), and a compliance company was contracted to take care of the regulations and loan paperwork. The borrower refinanced the loan with conventional financing as he showed more income in 2011. The loan was outstanding for about a year and, with the origination fee, my annualized return was in the neighborhood of 12%. Despite the volatility in the housing market, I feel the substantial equity protected this yield quite well. My question is, if there was a platform that allowed you to contribute a portion of the loan amount and secure a proportional percentage interest in the proceeds, would this be attractive. If anyone is familiar with prosper.com, this would be similar to that except secured by real estate where you would have recourse to foreclose in the event of nonpayment. I'd like to hear what reservations you would have with this type of arrangement as I am currently consulting for a company that is looking to make an online platform for this. These types of investments are generally reserved for the wealthy, and I would like to be a part in the effort to open it up to everyone. Thanks for your time and my apologies for the lengthy post.