loaning family money

[ultrarunner]

Several years I and two other neighbors talking and the mention of buying a dozer came up. and the discussion was each put up 1/3 of the cost of dozer and one was enthused at the idea. and mentioned several places to build water tanks for his cattle and clearing of trees and brush . then there was a mention of paying for hours of use and deposit in bank in case of repairs and cost of servicing the dozer.

This was beyond his level of thinking he thought we had tricked him into the idea and backed out.

Same way the family has of borrowing funds for there advancing into becoming wealthy use others money and walk away from the cost borrowing and payback.
ken

This was how my brothers and I came to open a joint checking account... separately we could not qualify to buy a home... together we could... the idea was to do this 3 times so each would have a home and what happened is all the properties are now rentals...

Just makes it easier to run all the money through a joint checking account.

I did buy a splitter with neighbors... I've probably used it the most but not enough to justify owning.

 

[tempforce]

i loaned my son some money so he wouldn't loose his car. knowing he probably wouldn't pay it back.
the following month, he needed more, so i told him he needed to make payments to a account which i gave him the account number to, to make the deposits.
every time i went into the bank, i put my spare $$$ into the account, as it was for my grandsons college fund..
i was the only person who could make withdrawals.
after a year, i closed the account, as not one deposit had been made.
during that year, i did buy groceries and household items for them, but never gave cash.
after the year, i didn't have the funds available any more, his mother was out of cash as well.
neither of us have seen them or the kids since..

 

[ultrarunner]

Sad but the reality for many...

One of my co-workers has not seen her son in 7 years... she is a very hard working women of modest means and he was simply taking whatever he could... he is 34 now.

 

[Ken]

Sad but the reality for many...

One of my co-workers has not seen her son in 7 years... she is a very hard working women of modest means and he was simply taking whatever he could... he is 34 now.

Kinda of depressing to grow up and never cared about who raised him.
ken

 

[Terry1040]

In the 1970's all bank borrowing that I did was "signature loans". Today, no banker will do that. They want collateral, credit score, repayment ability, character references, and "a note from your great grandfather" ! Family loans really should be not much different. Collateral will eliminate the request for loans, if the collateral is real and worth something, they would have gone to a normal lender or pawn shop. We have become a nation with a large % of welfare mind set people, who do not want to work for anything, but do want everything handed out to them with no requirements. Too bad. I do loans, and I reqret most of them ! Too easy to forget that it needs to be repaid, always asking for more. Gifting to the receipent or buying an item from them might be better most of the time. Merry Christmas from Nebraska !

 

[doxford jim]

Gifting money (loans) doesn't fix the problem - probably exacerbates it.
I think everyone falls on hard times during their lives - it is what you do to overcome that shows character or strengths (or lack of).
I have made lots of dumb choices but none have cost anyone money except me. I caused my problems and I got out debt the hard way by working and saving.
Nothing in life is free.

 

[ultrarunner]

Banking was about relationship for a long time... now it is computer algorithms...

I opened my checking account by walking into a bank with my first paycheck at age 12... no one I knew banked there and the manager sat me down and looked at my corp. pay check and said anyone old enough to have a real job is old enough to have a checking account at his bank...

The same manager also approved my 16 year old brother for a credit card... he too had a job for the park district as a lifeguard... the manager put the limit at $200 for the Visa and reminded both of us that if my brother was not responsible it would come back to him the manager...

Both of us have always been very responsible and my younger brother is very successful and people go to him for money...

I work in a Hospital and one of the Nurses I had worked with for years had found their dream retirement property in the foothills and were in jeopardy of losing it because it was contingent on selling their current home... my brother said he would either sell their home or buy it... and they shouldn't worry about missing out on their dream home with an acre pond...

He has actually made a lot of bridge and seconds on property to facilitate a transaction... of course it is all proper with Deeds of Trust and recorded...

Family loans can be a win/win...

 

[ultrarunner]

Banking was about relationship for a long time... now it is computer algorithms...

I opened my checking account by walking into a bank with my first paycheck at age 12... no one I knew banked there and the manager sat me down and looked at my corp. pay check and said anyone old enough to have a real job is old enough to have a checking account at his bank...

The same manager also approved my 16 year old brother for a credit card... he too had a job for the park district as a lifeguard... the manager put the limit at $200 for the Visa and reminded both of us that if my brother was not responsible it would come back to him the manager...

Both of us have always been very responsible and my younger brother is very successful and people go to him for money...

I work in a Hospital and one of the Nurses I had worked with for years had found their dream retirement property in the foothills and were in jeopardy of losing it because it was contingent on selling their current home... my brother said he would either sell their home or buy it... and they shouldn't worry about missing out on their dream home with an acre pond...

He has actually made a lot of bridge and seconds on property to facilitate a transaction... of course it is all proper with Deeds of Trust and recorded...

Family loans can be a win/win...

 

[Soundguy]

Hey Sounguy, can I borrow a tractor?

Might be a bit of a drive!

 

[Mace Canute]

Might be a bit of a drive!

Soundguy, if you start out now....