What would be a good rate of return on a medium risk (central America real estate)18 month loan of US$100k?
Answers:
First, I wouldn't even consider investing in real estate in a foreign country unless I was intimately familiar with the country, the market, the releveant laws governing real estate in that country. Second, I'd make absolutely sure I was dealing with a large, established, reputable institution. Third, make sure you understand how foreign excange (depending on the country) might impact your investment return. I base this on having at one time worked in an organization that did a lot of lending business in Central and South America.
Given the above, my opinion (not based on current knowledge of actual returns) would be annual return in the 30% plus range--certainly no less than a return in the 20's.