Long term loan to a friend

[Super_Geo]

I am about to make a long term loan to a very close friend with an expected payback period of between 5-10 years. I want to keep this well documented and legit... does anyone have experience with loan documentation? Is it something I can get off the net, do I need to get it notarized?

Thanks.

[Mibz]

Maybe you should lay down a solid payback period before you talk about making it legit.

Also, this is a terrible idea, yadda yadda.

[max_boost]

Did you read A790's thread?

Can't your friend go to the bank to obtain this loan?

Not something I would do but good luck man.

[blitz]

These threads never end well.

[turbotrip]

loan+friend= bad idea 90% of the time

[benyl]

Don't need a document. Kiss your money and friendship good bye.

If he / she is a good one, you'll get it back.

[J.M.]

Don't do it.

[Disoblige]

http://www.expertlaw.com/library/bus...sory_note.html

Form creator:
http://www.lawdepot.com/contracts/pr...e-formtextlink

I would get it notarized for your protection.

[Stunt66]

Originally posted by turbotrip
loan+friend= bad idea 90% of the time

more like 99.9%

Don't do it if you want to keep this friend. My brother is going through this drama right now and $10k was all it took to kill a friendship. The jackass even went to their circle of friends and said my bro made him work for next to nothing even though it was his idea to pay the loan back with some of his paycheck.

You can have this typed up legally but if shit goes wrong you might win in court but you'll still lose a friend.

[GS430]

You're a good friend for considering this, but as most people have mentioned, it's a bad idea.

I've heard of a few horror stories about cheques bouncing, excuses, broken friendships, etc.

I'd even co-sign someone before doing this..

[littledan]

Do this if you don't like money or friend.

[clem24]

Yeah I don't think I can do either. Obviously your friend is coming to you as last resort if they can't get a loan elsewhere. How much are we talking here? If it was me and it was my really close friend (we're talking like #1, or maybe #3 max), I'd probably just kiss the money goodbye with no expectation of repayment (if this was their first time and they were really in predicament). Not worth losing a friendship over, especially after reading A790's thread.

[max_boost]

Originally posted by GS430
You're a good friend for considering this, but as most people have mentioned, it's a bad idea.

I've heard of a few horror stories about cheques bouncing, excuses, broken friendships, etc.

I'd even co-sign someone before doing this..

+1000

[Super_Geo]

Thanks for the input guys... and yeah, I know everyone has countless stories on how these things can (and often do) go south.

For what it's worth, the loan was my idea, not my friend's. She graduated from law school a year and a half ago, finished articling this past summer, and between moving to a new city and starting her own practice (in criminal defense, which doesn't pay nearly as well as corporate law) she has maxed out her student LOC and now is carrying a small balance on her credit cards (~10k).

My plan is to loan her the $10k at Prime+1% so she isn't paying 20% CC interest, and in return have an option to buy out her student LOC in $10-20k increments at any time down the road, and receive the same interest rate that she is currently paying on it (Prime+1%).

At the end of the day, she has a good career ahead of her, and just needs a small lifeline right now. In return, I think having the option to buy her debt out in the future when her career is established and risk of default is low is definitely worth some upside.

Originally posted by Disoblige
http://www.expertlaw.com/library/bus...sory_note.html

Form creator:
http://www.lawdepot.com/contracts/pr...e-formtextlink

I would get it notarized for your protection.

Thanks man!

[max_boost]

I have a better idea. Is she hot? How about you pay to hit it. Nothing personal, just business.

Sorry bra, every thread must be derailed at some point and you are smart/og enough to filter through it hahaha

[ExtraSlow]

As long as the friend is good enough that you don't mind if this becomes a gift instead of a loan.

[TomcoPDR]

+1 for being bad idea

As tempting as it may sound banging Ally McBeal, but IMHO the only reason why you should lend money to a female is either ur connected to her sexually, or materially.

Dudes lending to dude friends, not a fuckin chance, not even if you're homosexual. (again unless ur connected sexually and he's hopping ur knob)

[InRich]

^ lol tom...

Anyways OP your a fucking idiot... straight up idiot, IF you go through with this shit.. You wanna remain friends, tell her to goto a bank...

[guessboi]

Originally posted by TomcoPDR
+1 for being bad idea

As tempting as it may sound banging Ally McBeal, but IMHO the only reason why you should lend money to a female is either ur connected to her sexually, or materially.

Dudes lending to dude friends, not a fuckin chance, not even if you're homosexual. (again unless ur connected sexually and he's hopping ur knob)

So awesome!

[lilmira]

Just pay her for sex straight up. Either way you are not getting your money back lol.