How To Secure A Loan To A Friend?

[Pilchard]

How to secure a loan to a friend ?

Got a mate who has overstretched himself financially, bought one too many properties just at the wrong time and now struggling with cash flow.

So he wants to borrow some cash , we go back a long way as friends, but I’m still looking for some solid security on the loan as it will be over 12 months.

Any suggestions on a way of doing this?

Would me holding the title deeds to one of his properties mean anything, or could they just be reported as lost and re issued ?

Is it possible to list a private loan or mortgage on the back of a Chanote deed?

Any suggestions appreciated

Thanks

[libya 115]

If he has title deeds to his properties then why does he not go to the bank and use (them) as surety for a cash loan. Why sponge cash off you?

"Neither a borrower, nor a lender be" {Hamlet}.

[Pilchard]

Thats why he needs the loan to sort out the financing. One is already morgaged through a company, other two are paid for.

[tijnebijn]

Not give a loan at all,unless how he can proove to you how to pay you back.If he has got so much property,why not sell some of it.People who overspend try to keep their dreams alive and their livestiles.

So better think about it twice,cause maybe he will not be your friend anymore after the borough........

Unless you like to learn things in the hard way,this story stinkssssssssss

[dude007]

It all depends on how much money your friend wants and how much money you are ready to give him. You may loose your money AND your friend at the same time and usually it ends like this. If the money is substantial, go for it the official way and make sure there are guarantees that you can recover your "lost" money if he cannot pay you back. Be ready for the worse!

I have a personal experience in this and would never lend money to a friend anymore. For sure you loose your friend if the return is not as you expected, even slightly different from what you were promised. I can assure you that you will never look at your friend the same way you did before!

There are no friends in finances...

[tijnebijn]

It all depends on how much money your friend wants and how much money you are ready to give him. You may loose your money AND your friend at the same time and usually it ends like this. If the money is substantial, go for it the official way and make sure there are guarantees that you can recover your "lost" money if he cannot pay you back. Be ready for the worse!

I have a personal experience in this and would never lend money to a friend anymore. For sure you loose your friend if the return is not as you expected, even slightly different from what you were promised. I can assure you that you will never look at your friend the same way you did before!

There are no friends in finances...

Slightly different,but exactly what I meant with different words,especially the last sentence.

[maccaroni man]

how to ruin a friendship: barrow or loan money and this friend looks like a high risk so you would want to charge a high rate of interest and the ill will begins............

[guardian]

Person1 : Are you my friend?

Person2 : I don't have money.

Person1 : I don't want money.

Person2 : Ok, I'm your friend.

[RAZZELL]

If the bank won't lend him money...why should you?

Take a step back and think about it..."This could be the end of a beautiful friendship"...

RAZZ

Edited February 12, 2007 by RAZZELL

[britmaveric]

I make it a rule never lend dosh out. Might find this a good test of your friendship.

[tgeezer]

how to ruin a friendship: barrow or loan money and this friend looks like a high risk so you would want to charge a high rate of interest and the ill will begins............

Would a high rate of interest be relevent, such rates are designed to cover non-performing loans are they not? If you are lending to only one person what is the point? If he needs 50 and borrows 100 he can pay back at 25% and it will be two years before you realise where the interest is coming from! Lending is a gamble you must treat it as a gift, be prepared to accept that the money will not be returned, then all will be well.

[dr_Pat_Pong]

Take a registered mortgage over his unhocked property.

[coldcrush]

Person1 : Are you my friend?

Person2 : I don't have money.

Person1 : I don't want money.

Person2 : Ok, I'm your friend.

Life is simplistic... you hit the "nail" (loan) on the head.... yeah give the fecker the money he will be alright!

p.s... monthly payments= 50thb a month

[Pilchard]

Take a registered mortgage over his unhocked property.

This is what i was getting at . Is it possible for a private person( a farang ) to be registered as the mortgage lender and therefore hold the security.

Guess it's time to talk to sunbelt

[dr_Pat_Pong]

Take a registered mortgage over his unhocked property.

This is what i was getting at . Is it possible for a private person( a farang ) to be registered as the mortgage lender and therefore hold the security.

Guess it's time to talk to sunbelt

You can do it but you need help ( at the borrowers expense ) Talking to Greg at Sunbelt is a good idea.

[backflip]

Your friendship is too valuable to lose it over a loan. Do not ever loan money to a friend or a relative. This thread will soon be filled with heart-warming stories how their friends and relatives paid back the loans on time. There are thousands of stories where it ended badly. Are you ready to foreclose and kick your friend and family out of their home? Of course not. In the end, you'll lose a friend, and the money. If the person is a real friend, he'd understand why you won't lend him the money. If he gets snotty about it, he wasn't a friend. As another asute poster noted, why would you lend this guy money, if a bank wouldn't?