[BarryRX]

The business model is legitimate. They lend money to people that flip houses (people that buy homes in foreclosure and spend money to fix them up and then sell them at a profit). Often, these people need money to finance their endeavors for a short time, and this is called a bridge loan. Of course, there is risk in such a loan. If property values drop again, the home may become worth less and they may not be able to repay the loan. One of the keys to such an investment is a rigorous service platform. Someone has to be calling the people up monthly and making sure they pay their loan. So I would ask them how they service these loans and if they do it themselves or they subcontract it out. I would also ask them what their default rate is and the,source of their own funding. Is it just from investors or have they borrowed a lot of money to then loan out to builders. But, one rule that is etched in stone is that the higher the yield, the more risk is involved.