<prompt> Human: My friend owns a couple of small businesses. He lives in the same condo building as me and we have been friendsneighbors for almost 8 years. He is always talking about different projects he is working on and I mentioned that I would be interested in going in with him on some projects. He said that he may need capital from time to time and it would probably be like investing some sort of capital short term for a small return. Yesterday he calls me and tells me that he has something for me. He is doing a mortgage refi with his client and he is basically acting as the lender and a little short. I would be lending him 75K and he will pay it back in 3 months with 8 interest. We will draft a promissory note and he is going to secure the promissory note with his lending business as well as his condo the one that he lives in now. He also said we can notarize the promissory note. I have no reason to think he will not repay me but this is a large sum of money and I just want to make sure I am protected should things go south. I have no experience in small business transactions and person to person loans. Here are the terms:75K loan with 8 interest, principal paid back in 3 monthsMonth 1 - Receive 500 in interest 75K8 divide by 12 months 500Month 2 - Receive 500 in interestMonth 3 - Receive 500 interest and 75K principal back1. Does the math sound right? I read about compounding interest but I think this is a simple interest rate calculation, right?2. Is there anything about the promissory note that I am missing? Anything to add? Clarify? I asked him to send me a copy of the promissory note so I can review it with the experts at work lol. I will try to post a draft of it later today when I receive it. 3. If he does default and not able to repay, what are the steps I have to take to reclaim the money? Assume it would be a long and tedious process.I feel good about this but want to make sure I am doing this right. I would appreciate any input I can get, thanks!  <response>: Dont do it, please. There is a reason hes a little short. The bank wont lend him money, and theyre in the business of lending money. I wonder why they wont? 