Would U Loan Out $20,000.00
 

Premise:
You get a request for $20,000.00 short term loan. They want to buy a car wash, $100,000.00, and need the 20% down payment.

They claim they could pull it off their credit card, but then take a hit on their credit score. Which raises their interest rate before closing. So doing it this way, would allow them to pick up the property without doing it.

Once the property gets to closing, they could pull your $20,000.00 off their card(s), + 7%, and pay you back. So you could leave it with them, collecting 7% instead of what the bank interest rate is. Or you can cash out, take your money back, plus 7% fee.

:Oh crap

no

345678

no way. i lent my two friends a pretty big chunk of change for them to buy a lambo last year with the promise it would be paid back in 3 months plus 10% fee on top. its been 9 months, cars gone, they are broke and im out a ton of cash :mad:

i personally wouldnt do it unless he/she can back it in equity

Why would you loan out money to buy a lambo? That doesnt sound very wise to me..

Lawyer up. :upsidedow

I would personally do it only if I had the extra money and I didn't expect to be paid back. I haver been down ad out too many times and needed the help. I also know how ledig money can ruin a friendship or cause family problems.

I think if you can do it that is a wonderful and caring trait but don't expect to be paid back and only do it if it won't put your family in a hardship.

Some people :1orglaugh

Agreed on many points posted.

I should probably include some back story for a more realistic, fair, assessment.


1. Person asking is minority business partner in porn company.
2. He owns half million dollar house.
3. Has a 44 foot yacht.
4. Owns something like 20-30 rental properties.
5. Has a half a dozen car washes.

So it's not like it's some, broke as a joke, family member or friend. He is asset rich, just no liquid cash on hand that he can easily get to. He wants to pick up this new car wash as he is moving from real estate to car washes for his main investments.

I had helped him previously with a $4,000.00 loan, and he paid it back in 10 days time. But I am having a hard time choking down $20,000.00.

After hearing the background story, I'd say HELL NO!

Seems like he wants to gamble with your money.

:2 cents:

I wouldn't do it. I don't trust anyone. Unless I was a millionaire myself and a 20k loss wouldn't hurt me.

if he's a minority partner with those assets and you have a hard time with $20K then you are doing something wrong ;))

So if you were a webmaster on GFY.... (pause for laughter)

and rolling in a lambo, living in a mansion on the hill, partying with Heff, getting your balls sucked, and asshole eaten out by all the beautiful platnium blonds in your town, and wiping your ass wit fitties.....


then you'd do it?

:winkwink:

tell him to sell his yacht to you for 20k, you will sell it back for 25k when he has the cash

He shouldn't have any problems choking up $20.000 if he owns all of those 5 above. Or get something from a bank.

I think you mean he is. :winkwink:

My main issues with this is, I have liquid assets. He is more capital investment, obviously. So while he is not broke... I am getting the feeling I am First National Bank of Barefootsies.

Which I do not really care, or want, to be.

Frankly, I am not a gambler. Most friends would barely have the balls to ask for a few hundred dollars. Maybe a grand. But when you start asking for 4-20k consistently....

I'm not saying I wouldn't consider it, but I have to say that one red flag that would go up for me would be why someone who owns all that can't come up with a lousy $20k? I mean really, My house is barely worth half of his yet I can get a "prime+1" low interest line of credit attached to my mortgage for $50k in the blink of an eye from my bank whenever I want it.

Something just doesn't feel right with this picture.

I would want everything put in lawyerspeak, definitely, including me being able to garnishee his rental income if he defaults on the deal, or something like it.


Btw, why does he "take a hit" on his credit score just for pulling the $20k from his card? I don't get it. As long as you pay the card back there should be no "hit" at all, should there? Also, if he is a homeowner, why doesn't he have a low-interest credit card? Mine is at 8% interest, regular interest rate on Visa here is over 19%.

Well, he could refi, or borrow from his $50k credit cards or whatever. But then he's going to take a hit on the credit score, is his premise. So instead of getting 9% with his a+ credit score, he gets 12%

(for the record, I haven't a clue what interest rates on commercial is other than it's higher than resi, just giving example).

Best suggestion, demand collateral.. If the guys gonna pay you back with his credit cards, but doesnt want to put it on his credit cards then what the fuck is the difference? It's still coming off his credit cards.

I'd say without a title in hand for something of value of $20k plus then it's a NO GO..

I've been fucking BURNED too many times in the past, and I don't loan money without legal docs in place and collateral now.

business is business, and this $20k is in fact a business loan..

Also, if he has all this property, and all these assets, he should be able to get a $20k loan from the bank in 15 minutes..

You are always so full of great ideas. :thumbsup

I used to own an auto detailing biz.

The money is better if you own a car wash facility.

IMO go for it :)

You forgot the golden chains and 20" rims, but yes.

I wouldn't do it, if the guy has those kinds of assets he SHOULD be in the 800 credit score ballpark and a simple $20k loan won't hurt him. If he doesn't go through a loan broker and just goes straight to his bank they run his credit ONCE which doesn't really hurt your score more than 5 points max BUT they got his score from before that pull though. Unless he shops around or fucks something up his credit won't be affected. Possibly if he's had an insane number of credit checks the past 2 years it could be an issue but WTF is 1 more if he's already got a ton. I just watched TWELVE credit checks go off my record this summer all from 2 transactions where I allowed people to "shop around for the lowest rate" from back when I was rich enough to not give a shit.

Tell him to sell you the boat, good idea from Smokey :)

Good advice as always Smitty. :thumbsup

To the point, I do not know...

I have known him for something like 10 years. Been doing business with him as a partner for around half that. We are more a less business partners (70/30). I do not hang out with, or talk to him, unless business related.

I do not get into all his dealings, nor share all of mine, outside of the business. So I am not sure what all he does, and doesn't have in regards to equity credit lines, and such other than what he has disclosed.

I DO know he has properties because myself, and models, have lived in them and I know the maintenance dudes. I also know the bank manager (before moving almost all my business to a credit union), and mortgage broker he/I use. So it's not that it can't be verified.

Good points mate.
:thumbsup

yeah, that's a fucking moron. :1orglaugh

And he's a liar :1orglaugh:1orglaugh

I was burned on that SAME bullshit myself. :disgust

If so , any bank would gladly finance him, so why turn to you?
Keep in in your pocket !
Lending money means losing friends later

:1orglaugh:1orglaugh:1orglaugh

is it 7% and get paid back in a month for a quick $1400 profit??
or 7% annual rate paid back in a month for $100 or so profit?

if it's the latter, then fuck that... way too much drama + risk for measly $100 profit...

That was the deal.

He said, you could leave it with him, and keep collecting 7% monthly from him instead of what the bank is giving you (I haven't a clue, but he said 1.5-2%) or you can just cash out, take your $1400.00 after the car wash deal, and call it a day.

Quick money for you, and he gets his car wash.

Yeah, that is what he, and others have said.

Coin laundry was the other thing, but you have some major capital expense with all the machines I guess. Some other hot ideas are storage places, and check cashing.

I really do not know as I have no interest in either or them, but that is just what he, and others have mentioned in the 'all cash business' investment dealings.

If he would loan it from a bank, and would pay back in 1 month he would only have to pay like 1% (if yearly rate is 12%) plus the ''openings/agreement'' fees. In holland it's called ''running credit'' and basicly you can pay what ever you have that month. I dont know a lot about loans but the interests rate is based per year, so 12% would make 1% a month interest.

in that scenario no fucking way I would do that for 7% LOL

15% and I would consider, but probably still turn it down, unless I could have proper paper work done on it so I could sure them later on if something fucks up.

I wonder if polish_aristocrat would.








:winkwink:

That's 84% interest rate lol. Who would pay that much? Smells fishy in my opinion.

Someone who wants $20,000.00 to buy another investment property.

simply said, no
this look to me risky

He has collateral, have him sign over some of his assets if he defaults on the repayment.