I have a request for $1 million in capital, mainly for the purpose of proof of funds:

Money is to stay in the joint account (investor + borrower account) with an admin lock on it, placed by you (the investor) for up to about 10 months, while the borrower uses the bank statements as proof of funds to obtain contracts for jobs, valued at over $5 million total.

Borrower won't have access to the funds, as they are obviously locked! (I may be missing a huge factor, but I have no clue; just throwing it out there). To me, it's no different than folks using POF letters to acquire real estate, except this guy is using it for his gold mines to obtain digging contracts or what not...

What happens is that basically, every week upon obtaining the 1st contract, the borrower will pay you a set payment ($10-15,000) until they have achieved the desired amount of contracts, or until those 10 months are up, after which you take back you total initial capital placed in the account (By common sense, you can literally make 100% ROI with this type of transaction @ $25,000/wk; however, I have never been able to verify whether this method is legit, what FTC regulations may be in play, etc..)

Technically, you can make an easy 50-100% return on your money over the course of those 10 months. You can structure it even as a cash advance w/ weekly payments on a 1.59 or whatever, & that be the agreement. The collateral is obvious, as it's your own money, and none of it goes anywhere. If the borrower stops paying or pays late too many times? Hell... You take your money out! lol

What do you think? Am I missing something? Is this common to some of you? I have a borrower requesting this type of financing: POF financing. lol