Setting Up Sister In Law In Small Business

[semper48]

My sister in law owns a shambles of a house on the main street in our small village. She rents it out for 3000 baht pr month and stays in the family home with her kids. The family is comfortably well off with no problems of debt, gambling or drinking. Sister in law works in the hospital.

Her dream is to restructure the house so that it will have 4 modern rental units that will bring in 2500 baht pr month. Ititial cost of restructuring estimated at 100.000 baht. The math shows this to be a sound investment and good piece of business. My farang thinking is; I will lend her the money and we split the income after expenses 50/50. Sister in law puts up the property and I put up the money. Pretty simple deal and good for both parties. I realize however, that this is too simple and plain and there must be a dozen ways of botching this thing up with misunderstandings and a whole set of Thai ground rules I will be stepping over. Common guys, give us a laugh and tell me your experience with similar situations. I am not the first fool to come to this bridge of that I am certain.

[PCA]

Experience of others will rather dilute the picture than leading you to a decision. If you can proceed with your life standard after blowing 100k baht then just do it. If you will ever see a penny back and any return on your investment is purely an issue of character within your "family".

[Nio]

It's a 100,000 baht not dollars

If you can do anything in Thailand for 100,000 baht and make money consider yourself lucky

It is such a small amount it is really laughable you need help deciding what to do

[nakachalet]

semper48

they all will surely appreciate your ingenuity and sacrifice....

and your sister-in-law in particular.... but what kind of person is your sis-in-law....?

if she is a business type.... and a certified RN working in a hospital.... and have reliable characteristic....

if i were you, i would surely give her the benefit of doubt....

but do video tape your agreement....

at least, if all else fails.... and she refuses to speak and visit your family anymore....

you'll have the lively video for good memory....

seriously.... i wish you would do it.... and that it will turn out well... so other farangs will do the same for their own family members....

personally, i also help a few thais to further their dreams of finishing their education.... and one in particular who aspires to complete

the thai herbal education and accupuncture.... it is very satisfying indeed.... to be able to give a little back ....

JUST DO IT.... semper48....

[rfukata]

things could always happen within a mutual family business/promise etc.

the amount isn't significant that you are investing however, I have made a rule here in Thailand that anything I do with my

money (in hired work/contracts etc) I always draw up a simple agreement and have the party sign it if so that you can

have some proof in the event of a 'Renege'.

[CWMcMurray]

I agree with the others, it is not a huge amount and if you can afford do to it it may work out. As a previous poster advised, whether or not you get paid back will depend upon the charachter of the family member receiving the funds.

I also agree that you should get it in writing. Make a simple contract and you both should ssign it along with 2 witnesses and attach copies of all 4 persons ID/Passports signed. (just in case it goes pearshaped).

[Naam]

and your sister-in-law in particular.... but what kind of person is your sis-in-law....?

has she got big boobs?

even if she doesn't, i think you should invest the 100k because the plan seems to be a sound one.

[Naam]

but do video tape your agreement....

... focus on the broad sides... ahmm... i mean bright sides and send a copy of the tape to me for evaluation and additional recommendations.

[apetley]

but do video tape your agreement....

... focus on the broad sides... ahmm... i mean bright sides and send a copy of the tape to me for evaluation and additional recommendations.

Wanting a Mia Noi, soliciting for dubious videos.......Naam your getting to be a dirty old man.

[Naam]

but do video tape your agreement....

... focus on the broad sides... ahmm... i mean bright sides and send a copy of the tape to me for evaluation and additional recommendations.

Wanting a Mia Noi, soliciting for dubious videos.......Naam your getting to be a dirty old man.

what do you mean by "getting too"? my wife says i am

[semper48]

Thanks for the input guys. I feel more at easy with making a decision. It isnt the losing a 100k that worries me but a family feud over something like this. I think it will be alright.

[neverdie]

and your sister-in-law in particular.... but what kind of person is your sis-in-law....?

has she got big boobs?

even if she doesn't, i think you should invest the 100k because the plan seems to be a sound one.

but do video tape your agreement....

... focus on the broad sides... ahmm... i mean bright sides and send a copy of the tape to me for evaluation and additional recommendations.

Yes, Naam must be slowing up in his old age, normally he would of asked for you to interview the SIL in the nud_e.

OP, Probably the biggest dilema I can see is the cost blowing out from 100k, be prepared for that.

Next thing, in my experience with these kind of matters (I had something similar going here at the farm) the rules of your agreement can change, it doesnt seem to bother the thais when 'they' do that, its all business as usual, this is Thailand.

Anyway, when my agreed rules changed on the Thai side, I immediately amended my side as well, strangely enough that caused a mini stink within the family but they got an idea how I operate now. Also, FYI, I recouped my input, but I wouldnt do it again. The senior members of the family are very pro me, but theres a couple of siblings that still have their noses out of joint, which is a pity for them Good luck.

[chiangmaibruce]

The usual advice regarding the dangers of lending to family and friends holds true in Thailand, and then some. It is fairly common practice here that a 'loan' to a family member = a gift, and not just when a farang is involved. And regardless of the SIL's best intentions, be aware that the level of ability of many Thais in relation to personal finances & budgeting is pretty dire.

I would also agree re: the danger of the initial estimate blowing out, especially when it becomes known who is paying ... but don't handover the (bulk of the) money till the work is done - and then directly to the builder. Are you living in the village and able to keep an eye on things?

So two ways to go with this ... either on a business footing with the serious expectation you will get your money back OR more casually and in the knowledge that you may not get any/all your money back. If you go for the former then get your name on a real asset belonging to the SIL (not just some general contract as has been suggested) ... in other words have her car placed in your name until the money is returned or the transaction noted on the land chanote, etc. But don't take the relaxed approach and then get all angered-up if the money disappears, as this may well lead to family rifts and bad feeling on top of the loss of your funds.

[seank]

"The family is comfortably well off with no problems of debt"

Building a house or creating a business can cause stress, Some people love that type of stress but other cant handle it.

So if everyone is happy now no point in rocking the boat trying to upscale their lifestyle.

[dingding222]

HORRIBLE IDEA SIR.

if it were such a good thing why isnt her own flesh and blood helping her out, you say they well off.

BIG RED FLAGG THERE!

unless you looking for another thai thing,, you know , the sister thing!

[PCA]

HORRIBLE IDEA SIR.

if it were such a good thing why isnt her own flesh and blood helping her out, you say they well off.

BIG RED FLAGG THERE!

unless you looking for another thai thing,, you know , the sister thing!

dingdong22, it's embarassing to read your rants, also in one of the other threads here. For somebody who obviously knows little you are talking a lot.

[dingding222]

i cant help if silly people need help1 its all in fun.

so you think a mom and dad wont lend money to fix up a house so the farang should do it..........good grief.

[PCA]

i cant help if silly people need help1 its all in fun.

so you think a mom and dad wont lend money to fix up a house so the farang should do it..........good grief.

so you think after reading a 5liner you are qualified to analyse and judge this (or any other) situation properly?

[dingding222]

really sir.

how much info you need.

MOM AND POP WONT LEND HER MONEY, would you -PPPPPPPPPPPPPCCCCCCCCCCCCCCCAAAAAAAAAAA- invest with her!

[PCA]

really sir.

how much info you need.

MOM AND POP WONT LEND HER MONEY, would you -PPPPPPPPPPPPPCCCCCCCCCCCCCCCAAAAAAAAAAA- invest with her!

sure I would boy. Now go wash your hands and stay in your room for the rest of the day.

[omarfromyemen]

is it even possible to turn a property in shambles to a decent 4 unit rental for $3000. immigration really needs to give iq' test be4 allowing some in.