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July 11, 2007 at 9:50 PM #9493July 11, 2007 at 10:02 PM #65344SD RealtorParticipant
I don’t think I would touch it with a 10 foot pole. Once people start saying “according to them” the property is worth this much money, or the property is not that far upside down, then that is when I start to get skeptical. No matter what position you will be in, it will not be the first position no matter what you write into the note.
Anyways, my advice is to run your numbers very very carefully.
SD Realtor
July 11, 2007 at 10:02 PM #65407SD RealtorParticipantI don’t think I would touch it with a 10 foot pole. Once people start saying “according to them” the property is worth this much money, or the property is not that far upside down, then that is when I start to get skeptical. No matter what position you will be in, it will not be the first position no matter what you write into the note.
Anyways, my advice is to run your numbers very very carefully.
SD Realtor
July 11, 2007 at 10:03 PM #65347lnilesParticipantWow. A friend of a friend bought property she couldn’t afford with loans she can’t upkeep and now wants to borrow money from you.
This is a no-brainer: give her what she wants! In fact, I’d take this opportunity to increase your karma by giving her double whatever she asks for.
But be careful, don’t offend her by demanding any written contract. After all, she’s a friend of a friend and you don’t want to damage that type of relationship over something petty like money. If you have it just give it to her, that’s what friends of friends are for.
Now that we’re all friendly, can I have your name and phone number? I have some other opportunities I’d like to discuss with you.
July 11, 2007 at 10:03 PM #65409lnilesParticipantWow. A friend of a friend bought property she couldn’t afford with loans she can’t upkeep and now wants to borrow money from you.
This is a no-brainer: give her what she wants! In fact, I’d take this opportunity to increase your karma by giving her double whatever she asks for.
But be careful, don’t offend her by demanding any written contract. After all, she’s a friend of a friend and you don’t want to damage that type of relationship over something petty like money. If you have it just give it to her, that’s what friends of friends are for.
Now that we’re all friendly, can I have your name and phone number? I have some other opportunities I’d like to discuss with you.
July 11, 2007 at 10:07 PM #65351CoronitaParticipantUm… even if this was you immediate friend, I wouldn’t suggest helping. Funny things happen to friends when it comes to money. After all, this is business, it’s not personal.
We’re not talking about a couple of bucks because someone forgot to bring their lunch money.If you’re concerned about upseting your middle friend, just say “sorry, we like to help, but we’re cash strapped ourselves.” Works everytime for us.
July 11, 2007 at 10:07 PM #65413CoronitaParticipantUm… even if this was you immediate friend, I wouldn’t suggest helping. Funny things happen to friends when it comes to money. After all, this is business, it’s not personal.
We’re not talking about a couple of bucks because someone forgot to bring their lunch money.If you’re concerned about upseting your middle friend, just say “sorry, we like to help, but we’re cash strapped ourselves.” Works everytime for us.
July 11, 2007 at 10:08 PM #65415stop_the_bubble_hypeParticipantSD, have you or any of your clients been involved in these types of situations? I’m inclined to say no as well, but I’m interested in knowing what terms others have used.
I appreciate your feedback. We are torn on this one because we know the woman has been having some difficulties with a bitter child custody battle as well.
July 11, 2007 at 10:08 PM #65353stop_the_bubble_hypeParticipantSD, have you or any of your clients been involved in these types of situations? I’m inclined to say no as well, but I’m interested in knowing what terms others have used.
I appreciate your feedback. We are torn on this one because we know the woman has been having some difficulties with a bitter child custody battle as well.
July 11, 2007 at 10:09 PM #65349GoUSCParticipantI don’t even think this thread deserves to continue. She is in a jam and coming to you asking for handout. Money and friends (or friends of friends) never mix. Humbly say no and move on. You will get burned.
Perfect example I know someone who loaned his (now ex) wife’s father $50,000 for his business. In exchange he was to be paid 12% interest and got a deed to the house. Now they are divorced, the guy stopped paying interest, and my friend is in line behind the first and second trust deed’s who’s balance owed is more than the house is worth. He isn’t going to see a penny.
Run don’t walk away from this.
July 11, 2007 at 10:09 PM #65411GoUSCParticipantI don’t even think this thread deserves to continue. She is in a jam and coming to you asking for handout. Money and friends (or friends of friends) never mix. Humbly say no and move on. You will get burned.
Perfect example I know someone who loaned his (now ex) wife’s father $50,000 for his business. In exchange he was to be paid 12% interest and got a deed to the house. Now they are divorced, the guy stopped paying interest, and my friend is in line behind the first and second trust deed’s who’s balance owed is more than the house is worth. He isn’t going to see a penny.
Run don’t walk away from this.
July 11, 2007 at 10:11 PM #65355stop_the_bubble_hypeParticipantThanks for the comments fat and rad, we’ll likely say no but I’m still interested in learning if others have done something similar.
July 11, 2007 at 10:11 PM #65417stop_the_bubble_hypeParticipantThanks for the comments fat and rad, we’ll likely say no but I’m still interested in learning if others have done something similar.
July 11, 2007 at 10:32 PM #65360CoronitaParticipantThanks for the comments fat and rad, we'll likely say no but I'm still interested in learning if others have done something similar.
You mean loaning money? If so, not on real estate. There was a time though when one of my wife's college's friend's friend was admitted one of the top 3 MBA schools. The only problem was that he couldn't afford to go. His friend's friends started to solicit college friends (5 folks, wife included) if they could help "sponsor" him for a student loan. It started out that someone suggested each of us could loan him a couple of ten-thousands, with a "promise" for payback plus market interest. The problem was that this person was from China, with no credit, no assets here, nothing (hence why he couldn't qualify for a student loan). I was sort of leary of this, but my wife was generally sympathetic to students from her college. Being a foreign student herself, she could relate what a great opportunity it was and how it would be terrible if the person couldn't go, so she was considering helping the guy out. And since she was planning to donote to her alta-mater anyway, we thought well why not just cut out the middle man and help an actual person out….We probably would have gone through with it except other folks bailed out, and it somehow ended up that his friend's friends were trying to get him a real student loan, co-signed by the rest of us. At that point, we bailed out. The way we got out without upseting her friends was that I just told her to tell them that "my husband is a cheap american bastard, and won't cosign any loan without collateral…"
In hindsight, I don’t know what we were thinking. While I feel bad that i think the guy didn’t end up going, it’s really not our responsibility to bail everyone out either.
There are the other friends that occasionally ask us if we would like to “invest” in some fund/asset/property/etc. The polite thing to say imho is, “gee, we’d love too, but were broke especially now with a kid”.
July 11, 2007 at 10:32 PM #65423CoronitaParticipantThanks for the comments fat and rad, we'll likely say no but I'm still interested in learning if others have done something similar.
You mean loaning money? If so, not on real estate. There was a time though when one of my wife's college's friend's friend was admitted one of the top 3 MBA schools. The only problem was that he couldn't afford to go. His friend's friends started to solicit college friends (5 folks, wife included) if they could help "sponsor" him for a student loan. It started out that someone suggested each of us could loan him a couple of ten-thousands, with a "promise" for payback plus market interest. The problem was that this person was from China, with no credit, no assets here, nothing (hence why he couldn't qualify for a student loan). I was sort of leary of this, but my wife was generally sympathetic to students from her college. Being a foreign student herself, she could relate what a great opportunity it was and how it would be terrible if the person couldn't go, so she was considering helping the guy out. And since she was planning to donote to her alta-mater anyway, we thought well why not just cut out the middle man and help an actual person out….We probably would have gone through with it except other folks bailed out, and it somehow ended up that his friend's friends were trying to get him a real student loan, co-signed by the rest of us. At that point, we bailed out. The way we got out without upseting her friends was that I just told her to tell them that "my husband is a cheap american bastard, and won't cosign any loan without collateral…"
In hindsight, I don’t know what we were thinking. While I feel bad that i think the guy didn’t end up going, it’s really not our responsibility to bail everyone out either.
There are the other friends that occasionally ask us if we would like to “invest” in some fund/asset/property/etc. The polite thing to say imho is, “gee, we’d love too, but were broke especially now with a kid”.
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