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11 posts • Page 1 of 1
A good friend of mine was struggling financially until meeting this real estate type guy, which helped him be introduced into a much wealthier lifestyle and opportunities, which he used to propel himself financially
Shortly thereafter my friend came into over 100k plus, this new friend who had built much trust with him, asked for a loan of 50K, then a further 20k. Long story short, its 9 months later and 3 months overdue from being paid back. It also cost him an additional 22K in frozen funds from other complications from helping this friend.
My friend has found his so called 'friend' is much shiftier and untrustworthy than he seemed, and he is worried he wont be paid back. He has a contract with a caveat option to put against the guys property, but he is worried there is too much debt on the property and the equity is less than the owings.
What are your thoughts on collecting?
At least he had a contract. His only choice is either wait to see if the guy will pay or try to go against the property. And if the other guy is smart he has taken steps to prevent that.
Last edited by dreamofarakis on August 1st, 2016, 7:49 am, edited 1 time in total.
Does the other guy have other asset or bank account? He may have to talk to a collection lawyer to see what he can do. Sometimes a collection lawyer fees is part of the asset that is collected.
You don't say!!
1)Too much of one thing defeats the purpose.
2)Everybody is full of it. What's your hypocrisy?
I wouldn't lend out money to anyone. Any person that lends out money should do so at their own risk and expect they will not be paid back. If a person can't get a loan from a bank then there's probably a reason for it, and an individual has less options to get the money back than a bank does. Your friend is most likely never going to get back that $70,000.
Only two ways to ever lend money to a "friend".
1. Get adequate collateral and agreement that you WILL sell such collateral if not paid by a specific date. Just a straight up business deal, no ifs ands or buts or hard feelings.
2. Consider it a gift and assume you will never get it back. But realize that if they can't pay it back you will lose them as a "friend".
That's the only 2 ways I know, anything else you can usually expect problems.
Everybody has a plan til they get punched in the mouth
I guess since the two of you are apparently in real estate together, you couldn't deny that you have so much money to lend. It doesn't mean that he had to be made aware that the money was available to be lent out.
So the net pay out so far for the lender is only $8,000? Maybe he can reinvest that. Must be awesome that a person can make so much money so easily in the third world.
If the deadbeat friend is the one responsible for him having the money to lend in the first place, maybe he should just see it as a favor returned. Maybe that is partly why the rich are rich. They do each other favors without expecting a direct return and cut each other slack.
I agree with this. If you loan money to a friend, you should do it without acting like a bank. If you can't spare the money, then don't make the loan.
Amazing. Dude had over 100 grand in his bank account and he gave 70% of it away to a "friend". He must not think much of his financial security.
I only have 2 points to add. The first one is this:
1. When you give a loan out to a friend or family, you must ONLY give out a 1 time loan. If this loan is not paid back, they cannot ask for a 2nd loan. Until they make due with the first one, no free extra hand-outs. Along with that, the size of the loan is completely up to you, but I feel uncomfortable giving over 200$. If its higher than that, they will likely not pay.
2. I heard a saying that once said, "Never loan out money to your friends, just give it to them instead". Take that advice as you will if you think its a nugget of wisdom.