Over the years of running a small business, Lan had acquired sizable savings. She wanted to get the best return on this money and discussed this with her lawyer, Harvey. He advised her that this was an excellent time to get into real estate; he had many clients who required financing. Lan could provide either first or second mortgages, depending on her desired level of risk and return. Harvey said he had some clients involved in a large townhouse development. Lan trusted him implicitly, as he had been her lawyer since she had first started her business. Thus, she lent the bulk of her savings—$200 000—as a second mortgage, which would earn interest at 19 percent per annum over five years.