Lending The Family Money.

[JimsKnight]

You can lend it but don't expect the worst (ie not getting any money back, partly back etc).

Or you could play the 'No money available, its all tied up in investments line.' Quite how you'd translate that across to you Thai Gf is another matter though

[Cuban]

why dont you just buy 100,000 baht worth of the land and it put it in your gf's name? then let them save up 100k and buy it back from you her(you). you are more likely getting something back if she is the one controlling it, then if they are controlling it.

The Thai "solution" to that option would be to mortgage that land, maybe get 70-80% of the value, then allow the mortgage to default. You have paid 20% interest for their loan. Bouncing money through land or gold is not efficent.

You are being approached for money as you are a cheaper lender than a bank (lower % or they are banking on you not getting the loan repaid). Of they have already been turned down by the bank - maybe defaulted on a previous loan.

As others have said 100k is a nice round number, how much does the building work really cost, if you were to fund this project I would suggest that you fund it in stages and only release money as evidence of work completed is provided. You will find people ask for more than they really need on the assumption that the lender will only offer 50-75% of the requested amount, do not assume that they know how much the house will cost. If they spend the full 100k on the house and still have not installed windows or a door for example will you feel pressured to offer another 50k to finish the project? Do not assume 100k in their pocket would be spent only on the house.

A family loan - the gift that keeps on giving ?

what is their income, how are they going to pay you back?

Get some figures on what level of repayments and for what duration they would expect to pay to other sources of money, see where you sit within that range.

Personally I would not give money easily, it marks you as an easy hit, harder to refuse a second time. I have been approached twice for "loans" and turned both down, the first because it was a terribly bad deal - I was later to hear that this increased my standing within the family as it was clear I was not stupid with my money. The second was for an agent's fee for an overseas work contract, looking at the details it was illegal and although if the BIL had made it through the host country's immigration he would have had the money to repay the loan, he was not willing to pay interest or consider the situation if he was caught working illegally and deported.

Consider the effect on your relationship if you turn down the loan, if GF snubs you for more than a few days you exist only for your money.

[Morden]

You might want to wind your neck in a little before you go pontificating about me scoffing my burger and drinking my beer. Don't think for one second that I just came in out of the rain.

Sorry, I didn't mean to cause you offence. Although I was responding to your previous post, my image of burgers and beer was metaphoric and not aimed at you personally. Perhaps I should have said 'one' or 'we' instead of 'you'.

[Wekhin]

Can I take the land temporarily and sell it within a certain period of time?

Can I sell on the debt?

Or are there any other options available with regards to the land itself.

As an aside, if I lend say 50,000 against the papers for a car would the same apply in that instance if they fail to pay the debt for 3 month per the written agreement?

Thanks

No, you cannot take the land temporarily. You have to sue and foreclose the collateral, then have it auctioned. Foreclosure and auction will be done by Legal Execution Dept.

No, you cannot sell it because you are not the owner (title deed holder) However, if the owner agrees to sell and ready to sign, you can save a lot of legal difficulties.

[rainman]

And they have stopped building until getting the money together to continue with the next stage. Point is they need the new house finishing.

Well if they could keep on building without money they wouldn't have stopped. So it's a bit obvious that they have stopped because they don't have the money, is it?

If you can live with the fact that you may not see the money ever repaid, lend it. If not, don't. It's as simple as that.

[ballbreaker]

Do not lend money to family. If you want to give money to GF so she can manage that is fine but let it be know its one time only. If other family need cash she will have to do it with her 100K if she ever gets it back.

The crap about being looked down on by the family is crap because I said no twice for loans of several hundred thousand baht each time. One of the loans would have saved some of the family property that a sister had borrowed money on with the parents not realizing what she had done. I am still liked and respected by the family and they tend to take my side over the wife which pisses her to no end.

The one thing I did do was build the mother a new house because the old one was falling apart but it was my desire not a request from anyone.

Edited August 16, 2007 by ballbreaker

[blizzard]

holy batman! she is gf not wife. anyone tell you you are nuts for even considering it............lol.

[duratanium]

Ok, I have read all the posts - and would like to thank everyone for their replies. It has made interesting reading.

I have come to a decision, rightly or wrongly, to lend the money in 25k blocks. I will not take the land papers as security but I will take the papers for the car (even though I know that makes little difference, but maybe gives them incentive to pay back).

My reasoning is this :-

I know the house they have at the moment is in a very bad state and they have been building the new house for a long time. Also for the next 2-3 months work (on the employment front) is a bit slow for the husband and he can get on with the work on the new houe IF he has money to do it with.

25K is not a lot to lose in the event of forfieture.

I have rough ideas of the price of materials and can also look to see what work is being done as I am next door

If I see no work is being done then I can stop future payments. That may not make them happy, but life is life.

Also this way I can try and gauge better their and the g/f reaction to the offer.

I'll post later and let you know the outcome

[blizzard]

ever thought about comedy!

this cupple hit the farang lottery. you not even a relative and they getting access to your money.

just give em the money and be done with it. too small to worry about.

my jesus, you people are entertaining.

Edited August 17, 2007 by blizzard

[llothar]

2) THEY asked me to lend the money on those terms and those term are a ###### sight less than the banks have offered - so go do some research.

3) How clever they are has nothing to do with it. And they have stopped building until getting the money together to continue with the next stage. Point is they need the new house finishing.

2) I doesn't matter who said what, it is a fact that 24% interest rate is highly unethical. So if you accept this you are not only breaking law you are also a bad guy. And why should anybody give money back to a bad guy.

3) So they stop building for a little bit longer and make the money first, instead of spending something they not have and end up with a credit that they can never pay back or will be hit much too hard for the little benefits.

This all looks like the stupid thing going on in your home country (guess you are from the states).

[duratanium]

2) THEY asked me to lend the money on those terms and those term are a ###### sight less than the banks have offered - so go do some research.

3) How clever they are has nothing to do with it. And they have stopped building until getting the money together to continue with the next stage. Point is they need the new house finishing.

2) I doesn't matter who said what, it is a fact that 24% interest rate is highly unethical. So if you accept this you are not only breaking law you are also a bad guy. And why should anybody give money back to a bad guy.

3) So they stop building for a little bit longer and make the money first, instead of spending something they not have and end up with a credit that they can never pay back or will be hit much too hard for the little benefits.

This all looks like the stupid thing going on in your home country (guess you are from the states).

FYI... the bank asked for 6%. Strange then how the banks can ask such huge sums of interest if it is illegal to do so in Thailand. That means the Thais can borrow vast sums and then refuse to pay it back because the % rate is illegal

So, it makes me a bad guy... in your eyes, but a good one in their eyes. And <deleted> has it to do with what happens in Germany?

Anyway, as I posted previously, I have already come to a decision on what to do.

[DurianChips]

2) THEY asked me to lend the money on those terms and those term are a ###### sight less than the banks have offered - so go do some research.

3) How clever they are has nothing to do with it. And they have stopped building until getting the money together to continue with the next stage. Point is they need the new house finishing.

2) I doesn't matter who said what, it is a fact that 24% interest rate is highly unethical. So if you accept this you are not only breaking law you are also a bad guy. And why should anybody give money back to a bad guy.

3) So they stop building for a little bit longer and make the money first, instead of spending something they not have and end up with a credit that they can never pay back or will be hit much too hard for the little benefits.

This all looks like the stupid thing going on in your home country (guess you are from the states).

FYI... the bank asked for 6%. Strange then how the banks can ask such huge sums of interest if it is illegal to do so in Thailand. That means the Thais can borrow vast sums and then refuse to pay it back because the % rate is illegal

So, it makes me a bad guy... in your eyes, but a good one in their eyes. And <deleted> has it to do with what happens in Germany?

Anyway, as I posted previously, I have already come to a decision on what to do.

6 % per month, compounding monthly, is 101.2 % APR. There is absolutely no way this is true! None, no way, no possibility.

You are either being lied to, or you misunderstood, and the 6 % from the bank is APR, not MPR.

(1.06^12=2.012)

[batami]

the OP was me 8 years ago; same scenario, but Filipino girlfriend who became my wife (marry in haste, repent at leisure) she is now exwife. She asked to often and for too much, if I had writtne the requests down and pinned them on the wall it would have become as decorated as a Lama's prayer wheel

the term "thin end of wedge" comes to mind and i am surprised how little it has figured in this thread....

No matter how good the cause, how sick the buffalo, how poor the roof, how ill the sixteenth cousin is, once you open the door there is a VERY great danger this will bring a flood of requests.

When i was in the UK and my girlfriend was at home, she asked me for sums which did not seem a lot when i was in the UK and paying over GBPs - but later, when I got to know the local cost of things, I was sending a small fortune for all kinds of necessary repairs to her parents house, her brothers, house, her sisters house, etc --- whoops now off topic.

this is your girlfriend, you are a farang, you are a source of cash, blah blah. Spend a few hours on Thia Visa and Stickman, and the decide if you really want to do it.... but (sorry) you have already decided to lend in 25k chunks - a wise move... i wish you well

But now go and cut your self a piece of timber, fashion it into a wedge and then use it as a paper weight on your desk. Mark the first request on the wedge and see how they grow.....

If they don't you have a great paper weight; if the do, you ca n see where it is going - right before your eyes

good luck

[duratanium]

6 % per month, compounding monthly, is 101.2 % APR. There is absolutely no way this is true! None, no way, no possibility.

You are either being lied to, or you misunderstood, and the 6 % from the bank is APR, not MPR.

(1.06^12=2.012)

Yes, that thought HAS occurred to me and that is why I opted for the 25k line.

Maybe it is previous bad financial repayments / risks or whatever but the local 'Union' here is charging a minimum 3% per month on loans and I have seen the paperwork.

So, time will tell what happens.

Some say give her / them the money, but to me that is a stupid thing to do. I earned that money and do not see why I should give it away - though lending in 25k chunks might seem to be doing the same. Yet 25k is not a lot. I am waiting to see what reaction I get now from her and the family at that suggestion LOL.

I realise it is a lot easier to say NO, but the family in question have done a lot for me. Maybe that is a softening up process, I do not know for certain but, I am hoping this idea of 25k chunks might show something up

[blizzard]

i agree with batami.

a gf who asks money from bf for family is a sign of bad things to cum in the future. all the warnings are there yet these dudes just dont wanna listen.