Investment opportunity.

Lending an extremely close reliable friend $10,000. He will pay me $120 a month until February when he refunds the full $10,000. So I will be making $720 on money that is otherwise going to be sitting in my savings account accruing little interest.

Please update us with the thread title: "How do I get my former friend to pay back the $10,000 he owes me?"

There is a money making opportunity here. The problem is that it is the person running book on the OP getting paid back.

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Yes, this.


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Lending money to close friends/relatives = NO NO NO NO NO NO, and NO NO NO. NO you will NOT get your money back, NOOOOO

Lending money to anyone = Less no, but still NO.

Never lend a friend or family money you don't mind not getting back....

Yep, yep & yep.

Get back to us in February and tell us how it went.

This loan is secured by what.................?

Never, ever, ever, ever lend friends or family money...ever. Rarely does it turn out the way you think it will. If they need money, show them to the nearest financial institution.


Seriously.

No way in hell would I do that, but just out of curiosity, what does your friend plan on doing with the $10,000?

So...

...your buddy is going to borrow money off you, and pay you vigorish every month until he can pay you the full principal in one lump some at a distant date?



There is a name for that type of practice, and I don't think it's wise to post about this on a public forum


Speed

Mu uncle borrowed $10k from my parents with a payment plan almost identical to yours. They got their money back after 11 years when he refinanced his house and his current wife forced him to repay his loans. By the way, he made his first payment only.

+1

Did he use it to buy Facebook stock?

Fuck that! Buy a mutual fund instead!

OP, just promise us that you'll use this same thread after it becomes obvious that you're never seeing your money again; I want to be able to tag it now and not miss out in February.

You could limit your risk by trying to sell 10 shares of the investment in the EE.

If it was a good idea your friend would be getting a loan from a real financial institution.

You have to pay the vig until you return the nut.

Will he still be your friend when the loan becomes a gift?

Exactly. While you MIGHT get it back, you should not "loan" money to family or friends if you cannot afford to let it end up a gift.



I have two or three very close friends that I would absolutely loan money to if they asked - but BECAUSE they are very close friends, they would never ask.

Polonius:


Neither a borrower nor a lender be,
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.

What collateral will he be leaving with you for when all of a sudden "unexpected issues" crop up, and he "just needs a little more time".

Are you prepared to lose $10,000 and a friend?

Did your friend try to take out a personal loan or other loan through the bank?

Why would you loan him money if a professional wouldn't?

Let me put it this way. You are risking $10,000 for the chance to make $720. Here is a better investment, buy 10k worth of stuff online or in a tax free state. Guaranteed 7%. If you live in a 7% tax state

as long as you remember it is a gift you will be fine.

No such thing as a guaranteed investment.

When lending money to friends don't expect to get it back....but be thankful if you do.

This, plus - if your friend was as good and reliable with money as he thinks he is, he wouldn't need to borrow from you in the first place!

demand collateral that will be held by you equal to the value you can sell it for.

have him sign over the car titles, liens and other forms of collateral.

guns, bullets, gold

you tell him to choose.

You would have a much higher chance of making money if you spent the money on lottery tickets, it would be less risky.

Lol....

Were you guys high when you came up with this plan? Hope you're holding his stash as collateral.

I have some likely uncollectable judgments sitting in the files of several clients who did something just like the OP.

Seems many others are aware of the folly of loaning money to "friends."

You just lost your "extremely close reliable" friend forever. Oh, and your $10K.

Ask me how I know.

sigh

If the 10k loss won't hurt you very bad AND you have decided to keep him as a friend - or not. I say go for it. IF you will need the 10k - or you have not decided which way you will lean when you don't get it back I say bail.

I have an ex-buddy (15 years) who is a Deputy Sheriff in a nearby county. He is an otherwise good guy - but he has a gambling problem. He has borrowed money before and paid back before. I know of his problem, but who among us is perfect? He is not married and has no children - he makes 50k a year. He also has about 1500.00 of my money.

I have not spoken to him in 2 years. I have no intention of ever speaking to him again. The 1500 is not killing me - I would not loan an amount I could not live without. I do not hate him, nor am I upset with myself. I knew the risk and I miss him as a friend - but the United Way I am not.

If the same thing came up again - I would again help a friend if I could. Although I could not afford 300.00 right now, let alone 1500.00.

YMMV

...this will not end well.

This

He has his friends word.

10k worth of risk for a maximum of 720$.

Wow.

Are we to understand that you have already done this, or that you are contemplating doing it?

I just want to see where this goes. I am sure everything will work out fine of course, but on the slight off chance that it doesn't I am in to see the train wreck.

This will end in tears and anger OP. if you're hell-bent on loaning this money have him put up collateral equal to or more than the 10K. Unless you have more money than sense, and I suspect this may be the case, this is a very bad idea.

The OP is why Nigerian scammers keep trying. Billions of people = millions of suckers.

This is either a troll thread or one of the stupidest things I've ever heard. I really need to know what this "sure thing" your buddy is investing in is. Or at least which racetrack the horse is running at.

Facebook IPO!

You'll be out $10,000 if you do this.

Look at the bright side OP. My education in finance cost me a lot more than the $10k it's going to cost you.

Can pay back ~$11,000 in less than a year, yet needs $10,000 now..huh. "Opportunity"

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