I married into a wealthy family once upon a time...and this is what they did....the 'godfather'...my father-in-law..made us loans for buying cars..., business's..whatever....he charged us 10% which at the time was not so bad..as interest rates were rather high at that time...
We made a contract...with regular payments.....We got a loan anytime we needed without red tape of a loan company....My father in law knew our history...and enjoyed a safety in knowing that he would be paid back..no matter what...plus..he had a contract..
MAKING MONEY LENDING TO RELATIVES
In these hard times....I would think its almost as safe to loan to relatives than it is to invest your money these days..and one good thing..is you know that family members past...so you can judge their ability to repay simply on knowing their personality..and their record of stability.
The very wealthy do this very thing...They give loans to the family members through their family estate which serves as a loan company......all under contract..with regular payments..
If a family member does not pay the money back as contracted...then they are kicked out of the program.....pure and simple..they are on their own.
By doing this...it increases the family 'Estate".....thus ..increasing wealth...inheritance..
Future times are not going to be like in the past...we are going to have to be more creative in planning our retirement futures..
Good Luck in the New World Order...your gonna need it! 
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| THE FAMILY ESTATE....LOANS...WHAT WEALTHY FAMILIES DO |
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musicianfriend
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Nov 8 @ 12:17AM
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http://www.tjkiv.com/intra_family_loans.html
A Cultural Shift. There has been a significant cultural shift in the last half century or so which I believe has adversely affected the soundness of all types of loans, including even ones within a family.
Fifty years and more ago, personal indebtedness was viewed as a matter of some disgrace, and, with the possible exception of a modest home mortgage, was avoided by almost everyone.
Over the intervening years, however, there has been a substantial attitudinal shift, which, coupled with the rise of consumerism and the burgeoning availability of "consumer credit", has essentially removed the stigma from personal debt.
Something else has also happened, which is that failure to meet one's financial obligations is itself no longer stigmatized as before, and, accordingly, the degree of moral suasion which used to provide a cultural buttress to the lender's position has largely disappeared.
Even bankruptcy, that most draconian of bad outcomes, no longer carries even a tiny fraction of the social disgrace which used to be occasioned by it. The additional risk resulting from these changes in social norms cannot be quantified, but it is nonetheless real and should not be ignored.
The Bible warns against usuary...it only leads to trouble when used incorrectly..Its a double edged sword..
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bardnsage
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Nov 8 @ 1:18AM
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The problem with loaning to family,,
is the same as government entitlement programs,,,
soon, it's expected as a free consequence of belonging to the group,,,
and not a tide over to get your ass back on your OWN feet.
Then, as the loans dry up,,,
the family relationship is strained,,,
I'll help a family member get work, I'll help with repairs, I'll even go get a bag of groceries on rare occasion,,,
BUT I NEVER, NEVER, NEVER,,, give them a loan. If I can't give it and think of it as money tossed down the sewer,,, then they don't get it.
They can sell off,, and move in if times are that bad. They can work for me, around this place for room and board if they can't do anything else.
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snidegrass
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Nov 8 @ 1:39AM
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i've lived in a family like that all my life. its sorta like slavery.
or volunteer work. neither a borrower nor a lender be.
i'm in debt a bit according to their viewpoint, but in mine no,
they owe me, billions. of course, its appraisal, my diamond
costume ring is actually worth at least 900 septillion swiss francs.
a matter of opinion really. a matter of appraisal. sotheby's
could possibly get a good racket rip off from it. isnt' it funny
how a new vincent van gogh painting suddenly miraculously appears
and is sold for like 600 million dollars. art fraud. well, if you
like to get taken? expert repos and copies. saw them all in europe
at the prado, doing expert work to fool even the finest of art experts.
amazing.one of my favorite wives is an expert artist and con artist.
yay. amazing.
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musicianfriend
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Nov 8 @ 2:01AM
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Its actually a very good practice...It keeps the 'family money' within the family...
I think its a good idea....
The family estate is not obligated to make the loans...one still MUST qualify..
Like I said before...in these hard times coming..we must be careful with our money...and try to keep as much of it as possible within our own families..within our own estate...within our own inheritances
The BankSters have caused all these problems we are having right now..along with foolish choices by the 'people'...such as re-fi their homes to take equity to buy junk like cars..vacations..thats the most unwise thing to do on the planet..
.A home is your best bet for a good retirement...Its really not the banks place to tell you how to run your lives...but they will happily help you destroy them..for a price...thats called usuary..aka interest..
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DiamondRain
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Nov 8 @ 2:31AM
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Lending money to family members is the same as doing any other business with family members: highly risky.
When you do business with a stranger, there are no personal relations or emotions involved. If something goes wrong, there are formal channels to resolve the matter and you don't have to spend the rest of your life still being "related" to them after it is finally over.
With a family member, you have none of these things. If something goes wrong, and there are many things that can, it can do terrible things to not only the ones who are doing the business together, but to many others in their family.
I've seen many families broken up by doing business together in family businesses and by things as simple as small loans to one another.
Unless the family member is willing to GIVE YOU the money as a gift, if you have no choice but to borrow, I recommend borrowing from strangers. It's a cleaner deal with fewer risks for the entire family.
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DiamondRain
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Nov 8 @ 2:39AM
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BTW, there are tax regulations regarding what you are and are not allowed to do with respect to loans made between certain family members. The essence of the rule is that you are not allowed to get any tax advantage by borrowing from a family member that you counldn't get borrowing from a stranger. So (assuming you are in compliance with tax laws) there is often no financial advantage to borrowing from a family member.
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justme836
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Nov 8 @ 4:22AM
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I have loaned money to family and friends. I will say that 50% of the time I was not paid back. I could take them to court but why spend the time or money. It was easier to let it and THEM go. A true friend or family member pays you back whatever they borrow and they pay you back before paying a company.
I have borrowed money from a friend and from my mother. I always gave a postdated check and the amount was paid in full within one week. If I need to make payments I go to the bank.
If you can't afford to give it away do not loan it out. I have one person in my life I would trust to pay back a loan. That is me. Family and friends are not a business. I can't imagine charging interest to someone I love who is in need.
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ttomtarr
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Nov 8 @ 8:40AM
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There are not too many new things in the world. 
There is an old saying from the times of ancient Rome. The Emperors would ask for a "loan" that everybody knew would never be repaid, because there is no law over an Emperor. 
He who prefers to give half, prefers to lose half.
That is, if they ask for a $100 "loan" that you know you will never see again, be generous, and give a "gift" of $50. You cut your losses by half that way. 
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gunn12fan
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Nov 8 @ 8:41AM
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Ok so what is your point? maybe you need to get out in the sun once in a while...and get a truck that actually runs..
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Mission_Impossible139
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Nov 8 @ 8:46AM
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Good Luck in the New World Order
Another whacko conspiracy theory for sure.....BUT since the house just passed healthcare reform, maybe we'll get lucky and the Senate will follow AND if the "New World Order" is part of that, then THANK GOD for them! Maybe we will be able to have health care for almost everyone and also that the healthcare corp rapists will have to start meeting people's needs instead of offering their death decisions based on the bottom line. 
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musicianfriend
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Nov 8 @ 4:29PM
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f you can't afford to give it away do not loan it out. I have one person in my life I would trust to pay back a loan. That is me. Family and friends are not a business. I can't imagine charging interest to someone I love who is in need.
You all missed the point......
ITs to build up the family fortune...
The wealthy do this all the time...
as far as charging interest to family members...remember this..ITS TO BUILD UP THE FAMILY ESTATE..they get it back!
I did this in my family..it works great...and the kids will be very happy when they inherit all that money....
If Obama doesnt get it first..
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musicianfriend
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Nov 8 @ 4:30PM
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nother whacko conspiracy theory for sure.....BUT since the house just passed healthcare reform, maybe we'll get lucky and the Senate will follow AND if the "New World Order" is part of that, then THANK GOD for them! Maybe we will be able to have health care for almost everyone and also that the healthcare corp rapists will have to start meeting people's needs instead of offering their death decisions based on the bottom line.
I rest my case...this paragraph exposes your ignorance...
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musicianfriend
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Nov 8 @ 4:32PM
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Oh yea.. I forgot to mention..
the $250,000 dollar fines that will be imposed thru this new health care bill..
The FELONY 5 Year sentence if you do not comply...
Loss of freedom...
Maybe you dont care..but I do...no money is worth my freedom..
Your sir...amaze me at your ignorance..
How much do they pay you to write in these forums to help destroy your freedom?
Ill give you a saw and you can cut off your own foot next....what a fool! 
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