Would you lend your best friend $25.000

Wayne's World said:
To buy a boat. What would you do to protect yourself IF you did ??. He wants a 2yr loan from me. I just don't want to lose a friend over a boat if something goes wrong !! ............ :smt100
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You don't lend friends money. What happens if he can not pay or does not pay do you repo the boat? No matter what you lose a friend. MY quess is if this person wants to borrow $20,000 to buy a boat he is not really your friend. You may be his but he is not yours.
 
I have carried paper from time to time as an investment. I have learned that these transactions have to be looked at as regular business deals that require normal documentation for the loan and for the security. Always retain a security interest in the item, file copies with the approporiate agency that records such leins and never, ever list yourself as a joint owner since all that does is cloud the title and make you liable for any 3rd party liabilities that he may incur.

One other thing to consider is that whomever you loan money to must be able to pass credit scrutiny and have adequate income to support his debt service and repayment schedule to you as well as have a record of paying his debts in a timely manner.

My feeling is that if someone must ask a friend, family member or associate for a loan, then he probably cannot get the loan any other way. This may sound hard, but I really don't care how tough the banks are........if the borrower cannot get a conventional loan, there is a reason he can't. Relying on friendship or family relationships and good will to get a loan that a bank won't make is not good business for the guy making the loan. I'll only make a private loan if the terms and interest rate adequately compensate me for the risk I'm taking and if the collateral for the loan is worth significantly more than the outstanding debt.

All this makes the transaction look a lot like a regular bank or credit union loan, but it does protect you. That is the way I look at it because it is just business to me, and I am the last guy in the world you want to try to screw.

I value my family and friends too much to loan them money or to sell them anything.
 
IF I had an extra 25K, I don't think I would lend it to my best friend for a "toy". I agree with the idea that if he can't afford the boat, he won't be able to maintain it, either. I would be afraid that putting your name on the title along with his would also increase your liability exposure. Since your pockets are obviously deeper, guess who the lawyers will chase harder....Hopefully it is a boat you wouldn't mind owning - because you just might. You're a trusting soul, and I hope it all works out well for you. And I hope it's all in writing with a payback schedule.
 
Wayne's World said:
I just got off the phone with Rick. I told him yes.
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WW,
I just saw this thread and I'm surprised and at the same time not to the responses you're getting. It's sad how the time has changed the way people think and do things now days. Your question was in regards to your BEST friend. If you have the money and would say "no" what kind of "best" friend it would make you. Yes, I totally agree with other's point on making the situation a bit complicated by introducing money, but we're talking about best friend here. If this is a guy you know for many years and he earned your trust, chances are he can be your best friend for many years to come. I guess, everyone have different opinion on what best friend is. I would say yes 100%, but for some sort of security would discuss the plan of action on how the loan would be paid off providing he has a steady job, just b/c in this case the money is going for pleasure toy.

I'm sorry for every "best friend" who received a "NO" answer.

Don't ever forget that real friendship is tested not by drinking a bottle of whisky together, but when one helps another in tough situations. You think this was a tough call to test your friendship? This is a "joke" compare to what some people go through during their friendships. The fact that you’ll lend him money for a boat will only bring your friendship even closer since due to your action your friend will be able to join you and your family on water. This will add just a lot of joy to both of you and he will be very thankful for what you did. Imagine slightly different case when a friend has lost a job and bank doesn’t lend him money, that’s when this question becomes much more difficult. But, yet again, if one would say “NO” to his best friend in this situation, you’re no were close to be true best friend.

Good luck to you and your friend.
 
Hm. I'd loan 25k to a friend.... a really good friend, but only if they had to have it. My really good friends would only ask, if it was truly necessary.... and my really good friends would have full intention of paying it back.
 
Nope-only bail money...and that's a little dicey. Even if you have great friends, a loan like that makes your friendship a business arrangement, that makes the repo that much harder. Just invite him to you boat, and tell him to bring the beer (or adult beverage of your choice)
 
Thus far I think Mike makes the most sense, not that you the reader cares, but in my opinion it is absolutely the best answer possible. It simply spells out risk.

I’ve lent heavily to friends in the past, but then, I don’t use the term friend loosely, and never have…

Good luck Wayne,

C-

TurtleTone said:
If you have it and it won't hurt to lose it, lend away. Just go into it knowing you may never see part of it again.
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I would loan as much as I could afford to lose without hating the guy after BUT not for a boat he obviously can't afford. If it is to help with a badly needed loan to help a friend keep his house, pay medical expenses or whatnot....absolutely! I agree with others that say if someone needs to borrow that amount they may not be in a position to purchase a boat.

My opinion only
 
My ex girlfriend asked me to lend her money last month to pay her mortgage. I said no, She cried, it felt good. bitch.
 
Hey, anyone want to loan me $25K? I thought all of us on CSR are best friends. Trust me, I'll pay you back :thumbsup:

Personally, I think your nuts. But, hey, I'm not you and can't judge your financial situation.

If you have a good income and a good credit score, you CAN get a loan. To say banks aren't lending is BS. They lend based on the probablity of getting paid back - HINT :smt021

You voted for Obama didn't you?
 
Do you really want the liability of owning a boat leased to someone else? I can think of so many ways that one can go south.......blown motor, run over a kid in a kayak, swamp a grandfather and his 2 grandkids out fishing with a wake........etc. etc.
 
TurtleTone said:
My ex girlfriend asked me to lend her money last month to pay her mortgage. I said no, She cried, it felt good. bitch.
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Thanks, TT. I needed that this morning. Really did make me laugh out loud.
 
TurtleTone said:
My ex girlfriend asked me to lend her money last month to pay her mortgage. I said no, She cried, it felt good. bitch.
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Mike you could have said yes.. sent her a check then stopped payment on the check for only a few $$
 
Alex F said:
WW,
I just saw this thread and I'm surprised and at the same time not to the responses you're getting. It's sad how the time has changed the way people think and do things now days. Your question was in regards to your BEST friend. If you have the money and would say "no" what kind of "best" friend it would make you. Yes, I totally agree with other's point on making the situation a bit complicated by introducing money, but we're talking about best friend here. If this is a guy you know for many years and he earned your trust, chances are he can be your best friend for many years to come. I guess, everyone have different opinion on what best friend is. I would say yes 100%, but for some sort of security would discuss the plan of action on how the loan would be paid off providing he has a steady job, just b/c in this case the money is going for pleasure toy.

I'm sorry for every "best friend" who received a "NO" answer.

Don't ever forget that real friendship is tested not by drinking a bottle of whisky together, but when one helps another in tough situations. You think this was a tough call to test your friendship? This is a "joke" compare to what some people go through during their friendships. The fact that you’ll lend him money for a boat will only bring your friendship even closer since due to your action your friend will be able to join you and your family on water. This will add just a lot of joy to both of you and he will be very thankful for what you did. Imagine slightly different case when a friend has lost a job and bank doesn’t lend him money, that’s when this question becomes much more difficult. But, yet again, if one would say “NO” to his best friend in this situation, you’re no were close to be true best friend.

Good luck to you and your friend.
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Making a loan to a friend so he and his family can eat is one thing…but loaning him money so he can park his boat next to me, put his feet up and suck a beer is another. Personally, every weekend when I would look at him relaxing on the boat I helped buy I’d be thinking he should be working OT or a second job instead. Maybe he could afford to purchase it on his own next year. This would not be good for the friendship. What’s with this gotta have it now, some one help me, some one give to me, Obama BS.

As for the OP I have to question him posting this in the first place. He posts the question a 7:17pm and by his 2nd post at 8:16pm he informs us that he has already talked to his buddy and made a commitment to him. What was the point? I hate it when people ask for advice but won’t take time to listen or consider the answer.
 
Short answer = no
Long answer = No way.
Stuff always happens - It will be said its no one's fault - but you are out the money! IE "well we hit a rock and I can't pay you back this month" or the insurance went up this month - wait until next month. etc. I have a best friend too but loaning him money would not be how I would show my friendship. I would surly work on the boat with him day and night if he needed me too. I am not buying the boat nor the parts.

Just my 2c
 
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