A Loan To Buy Land

[ltdknowledge]

I thai friend of mine has asked if i could loan him some money to buy some land, with the view of him paying me back in installment or offering me a 50% partnership, this would obviously be a gentlemans agreement.

I have loaned him money in the past to buy a second hand car which he paid me back with no trouble. Although the land itself is not to expensive, if i were to loan him some money, is there any form of protection via a solicitor should our relationship go t*ts up. I'm not realy that interested in a partnership but i would like some security should i loan him the money. I'm here in Thailand on and off and return to the UK frequently. I stay with my GF and run my small business in the UK.

Thanks

[eljeque]

Easy.

A lot of this is none of my business, but I am gonig to ask it anyway, as I am also providing information to keep you from losing your money, and need to know the answers to provide accurate information.

You can do what is called "Ky Fawk" which means that you are receiving the property as gaurantee on a loan. You register this at the land office, in fact the land officve does the work and papers. It will cost HIM a few percent of the loan value. Also have your attorney write a power of attorney, or get one from the stationery section at Carrefour. Have your girlfriend find it for you.

You can also make a mortgage for him, but that is more difficult for you to take the land from him. Take the one above instead, as it gives you more power. KY FAWK

If for any reason, he hessitates signing any documents, then walk away and have nothing to do with him.

Did you plan on asking for interest? If so, how much? It is not your responsibility to help him buy land. If he borrowed from the bank, he would have to pay some interest. Why isn't he doing that now? That is what banks do? You can chanrge as much interest as you would like. If 10% is enough for you, then tell him. That is cheap enough. How many years does he want the loan?

Is he interested in building a house, or growing food, or? How will he be able to pay you back if he has not been able to save much for the property. Does he have 20% of the price as a down payment? Do you know what the land actually costs? Have you looked around in the area and found other land and found prices?

Does he know your girlfriend? Is so, is it through you or elsewhere?