I am too lazy to do a thread search, but some time ago I had posed the question to the board in regards to how, or if, you do loans to friends.
For example, I will get people who want to 'invest' or 'buy in' to my business from time to time. I am not interested in that, but depending on what I have going on. I have done a short term investment. They flip $5-10k, for a 6 or 12 month term and I pay them back 20%.
I have just used the money to do a shit load of shoots, or launch a new project, etc. So it's just quick influx of cash for me to do something with, and they make their return.
I think in my original thread, business partner was asking for $20,000 and offering 7%. Most of GFY said to ask for collateral and so forth to make sure he would pay it back. I opted to NOT loan him the money.
A few weeks later a different friend left his wife of 10 years. He had asked for $2000.00 so he could find his own place, and get situated whatever. I did what I always do on loans, especially since most friends can't take out, and pay back, a loan of this size back in a decent, reasonable time frame. Asked about his debt, and time lines etc. I have known this particular friend for 20+ years, and he had helped me out with different things over the past, so I chalked it up to calling in a favor.
Anyways, the 2 weeks pass. No payment, A month, no payment. 2 months, no payment. Not only no payment, but no excuses, begging for an extension or anything. So at the two month mark, I contact him and I am like WTF?!?!? He tells me he's working on it.
A week, maybe week and a half later, he shoots me an e-mail and asks for another $1000.00 because he was served with papers, needed to hire lawyer, and so forth. I laughed, and said I do not think so. Try making a payment. So he goes to one of our other friends, and borrows from him.
It's been a month, and neither have been paid. I told him that I am going to have to get some answers, a payment, or the deed to his board or something. I called him once more to ask on this loan, and his latest idea was to sell off his 500 lures on ebay. One catch. The lures are at his old house, with the wife he is divorcing, who changed the locks.
Long story short. For once, GFY advise spot on with the loan. I probably should have known better since most people can't borrow more than a few hundred bucks and pay it back timely. But because of the history, and favors, I took a chance.
