My uncle asked me to loan him 2grand...
 

He says that business has been slow the past month and that he needs it and will pay me back, no interest, wheneve business picks up...

I am very close with my uncle, however something in my gut tells me that I do not want to get in this situation...

He recently got married, bought a house and started his own business, and today he called me for some money, and I told him I would get back to him.

He is 28 years old.

What would you do?

If I had 2k I'd do the same thing I always do when this situation comes up.

1) Make sure I won't miss the 2k.
2) Loan him the 2k but with terms of X payments of XXX and when.

If he pays you back you will know that you can trust him. If he doesn't it's well worth $2000 to find that out. I'd make sure to be very clear that I do expect my money back and set a no b/s deadline.

I would let him borrow the 2K. He is family. If its cool and it works out he will pay you back and always be willing to help you out in the future. If it doesnt and he does not pay you back. Well he will still owe you a favor and you never let him borrow money again.

bought a house and then started a business
gotto love that combination
why do people that are 28 years old and got no money need to buy a house?
nothing against your uncle
seems to be like a general trend lol
some people seem to love liabilities

Tell him you dont have spare money.

Make him prepare a formal presentation as if he were applying for a business loan from a bank. Treat it as entirely business. And what chadgini said.
(That's probably not what I'd do but it's the RIGHT thing to do).

I'd loan him the money or he might egg your car again:)

You do realize that mortgages are cheaper than rent in some areas right? Everywhere isn't Big Ass City, California where a $1000 rental = $2500 mortgage. I am buying and it is cheaper than renting for way more home.

I would not lend it too him. He will not pay you back - your relationship will goto the the shit. Give it to him if you want. You will never see your money again.

If you do loan him the money, make him sign a note and charge him interest. WTF, why would he ask you for an interest free loan - that speaks a lot about him. I would charge him 10% interest. If he does not like it - tell him to go to a bank and ask them for an interest free loan.

Advice??

Dont do it.

Ive loaned money out to people, I thought, would surely to god, pay me back.
Family means nothing when it comes to money.

Then again, when family asks for it, its hard to say no. Your damned if you, and damned if you dont really. If you dont lend them the money, they get pissed.

I just let them all get pissed now, becuase once they pissed at me for not lending them the money, I dont feel so bad for not doing so.

thats only half true
you are not thinking till the end

look at the bottom line
he got no money and is sitting on a big liability
congratulations

never a lender nor a borrower be . . . especially with friends or family

Nothing wrong with going for it. Balls to the wall, feet first, sink or swim. I always work better under pressure and have made a few commitments I had to bust my ass to pay for later. Besides, if you are going to pay $750 rent you can pay $500 for a home. If the guy was renting it's not like he's going to move back in with momma if his biz doesn't work out, he'll get a job and take care of it.

Yes I own my own home and yes I "bought" it when I was just getting started. It drove me. :upsidedow

Put a lien (sp?) on his house if he doesn't pay you back. :Graucho

Family and money are typically like oil and water. I would at least get something in writing. Enforcing it upon defualt however wont be fun.... and i do forsee default on that loan :Oh crap

Edit. I noticed that your uncle is only 28.... how did that happen?

You see when a man and a woman love each other.....

if you think rent is the only factor to compare those two types of housing you got some serious analytical problems

It's one of the toughest positions you could ever be in. Having a family member who you care about ask for money. There is never a good scenario that comes from this. It has lose-lose written all over it.

If you don't loan him the money, he will be mad. Whether you have great reasons or not, he'll probably be pissed.

If you do loan it to him, it can cause more trouble. I've realized that loaning money to family is like giving it to them. It seems that a statement like "I'll pay you back when business picks up" means probably never. People are much more lax with paying back family.

My suggestion is to only loan it if you have the money and won't need it. There is a good chance you'll never get it back.

It's easy to have an aunt or uncle whose age is way off your parents... think siblings born several years apart. Your aunt/uncle could even be younger than you.

And if you think paying rent for 5 years simply because you don't know what will happen is the right thing to do then you have problems in general. I know all about expenses that come with a home, I also know that if something breaks I can still make my house payment and keep it even if I can't afford to fix it right then. There is absolutely nothing wrong with deciding you'd rather risk buying a home than THROWING your money away on rent, especially when the difference in price is negligible.

thats not what im talking about
but nevermind
enough time wasted on this thread :)

If you can afford to lose 2k then lend it to him - if you cannot then don't.
Don't lend him any more until he pays back this amount.

You like your Uncle so be prepared to write the money off if he cannot repay and don't hold it against him.
If you see him buying drinks or cubans cigars for others, splashing around money, gambling or making a donation to the Republicans or Democrats then slap him with a haddock and get the money back.
seanchai

Where in Ca can you rent for $1k and find a mortgage for $2500 a month?

I would give him the 2k and forget about it. Sometimes you gotta help out family :thumbsup

lend it to him but consider it a gift.... if he pays it back its a bonus

if it was 20k I wouldn't do it, but 2k seems ok!

We are both armenian and i have been in this situation before i gave the money and forgot about it. You have 3 options

A. Give him some excuse and not give him the money
( Your relationship with him will never be the same)
B. Give him the money and then keep buggin him for money back.
( Too much drama not worth the 2k )
C. Give him the money and forget about it.
( Eventually one day he will get it back to you if not you got off cheap with 2k)

:2 cents:

Nah, don't do it. Yes, he's family.... but what does that mean when he won't pay you back? Could cost you a family relationship and cause tension. I say don't do it.

He can afford 2k it seems, and I am sure his uncle knows this to. Personally I'd give him the 2k, and I wouldn't be too worried if I never saw it again (if it stopped there that is). The problem is though, and I've dealt with this before, is those same people start thinking your a bank that charges no interest and within no time at all, unless you are serious with them about it from the beginning, they'll be back for more money than more, than more. So you have to let them know you are serious from the beginning and never be like 'yeah yeah it's no problem' or else they'll take your word on it, and let them know that you absolutely won't keep handing over cash to them if you don't see this 2k back soon.

Do it, it's family, if you have the money and wont miss it help him out. Make sure you make it clear that you expekt the money back though.

I hate mixing money and family. Sucks everytime. However, its often hard to say no to a relative without causing conflict.. If you do loan the money make sure you both have a good understanding of the "terms" of the loan, when you expect payments, etc.

everyone in his family knows bdjuf is loaded......

it's your uncle man

and if your business goes well 2k is nothing...

give it to him

Well... family IS family. To minimize STRIFE and ILL WILL, if you FEEL like helping (this is very important) and you're almost sure it won't be repaid--just GIVE it to him. Structuring this arrangement as a loan will only generate emotional friction since there's a high likelihood (per your gut feel) that it won't be paid. The situation then becomes GIVING = helping out vs. loan = expecting something back.

That's my personal philosophy with my own family. Just my opinion. I'm sure others' may differ.

A lot of times, loans/business screws up more family ties/friendships than anything else. When it comes to helping out, sometimes it makes more sense to just plain out give than enter into a business/loan situation.

I agree...
it's a good way to find out if he is to be trusted... :winkwink:

Nope never lend money to family members or go into business with them :2 cents: :1orglaugh

Why not do it in a different way, somehow give him the money as a "Business investment" he will get the 2k "plus more if you are serious" and you can both come out good from it.

But it is always a hard thing i know what you mean, money and family is a tough subject.

Good luck with whatever you do.

Rydz.

If hes that close I'd loan him the money, but don't expect it back anytime soon, if ever.

:thumbsup

I've "loaned" by twin brother thousands over the years. He paid me $50 once like 6 years ago. He still "borrows" money.

Loan him 4 and then teach him how to fish..

do it man, hes your uncle!

2k is expensive just to know if you can trust him. Give him 1k and let him find the other 1k someplace else. If he fails to pay you it will only have cost you 1 k to see if you can trust him.

with my uncle it was working the opposite lol

but we have a 30years age difference

do it but only if you can afford to throw it away . family is family.. dont expect it back , if he does give it back consider it a bonus , and something that helps bring you even closer..

think about it twice

that's a lot of hair Gel to buy

Tell him for one night with his wife, you will give him $2k.
http://www.screenselect.co.uk/images...8254-large.jpg

:thumbsup

Give it as a gift and don't expect it back.