Pace explains why he turned down a $20,000 loan request from Angela. She needed the money to fix her properties before refinancing, but the deal only offered a $3,000 return, which he calculated wasn't worth the risk and effort involved.
Okay, so here's what's really interesting about this transaction is I've got a girl. Her name is Angela. And Angela knows that I do these types of weird, off the wall types of loans. She says, pace, I need $20,000 because I've got three houses that I want to refinance. And I went to my lender, and the lender says, no problem, we'll do a refinance for you. You're all approved, everything's good. They go back, they do an appraisal on the properties. The appraisal says, well, there's a couple of problems here. And we don't suggest you do a refinance until this lady Angela fixes these 10 things. Angela says, Dang it, I don't have $20,000 sitting around to do this, but I know I'll get a big chunk of money in my refinance. So she reaches out to me, she says, I need $20,000. Her suggestion was, Pace, if you give me $20,000, I will give you a return for $3,000. This return is actually really good. 121% on my money. What's funny, as I said, that return's not good enough for me.
