Financial advice

[Brian]

So I'm a pretty frugal/money-oriented guy. I tend to spend very little on pleasure/recreation, allow myself a (very small) set amount of nights to eat out, and I contribute to a savings account regularly even if I can't put in a lot. I pick pennies up off the ground and hit the change buttons on every soda machine I see. I really like money.

Since I avoid spending so much I tend to be looked to for loans. In the past I've made money off my coworkers' gambling habits, loaned out money for siblings to buy small things, and loaned to my brother-in-law to get started in their new apartment. That one hasn't been paid back yet, but they are saving towards it and just moved in a more responsible roommate.

Anyway. So with the background out of the way, I'm faced with a dilemma and I want to see what you guys think. The above-mentioned brother-in-law has a friend who is a social worker. She's wanting to adopt a blind baby from Korea, but needs $1500 to do it. So apparently my brother-in-law, without asking me first, goes and tells her I would be able to make the loan and said he would ask me about it. So the other day he called me up and wanted to know if I'd do it.

She apparently says she can pay me back over 3-4 months, with interest. She would also be willing to get with a lawyer and have a legal contract detailing repayment (which I would intend to read quite thoroughly) written and signed.

Apparently she is recovering from bankruptcy due to one of her daughters racking up a heaping ton of medical bills from an auto accident, but I'm told she is otherwise pretty financially sound as far as income and frugality goes.

So what do you guys think? Should I make the loan? I'm interested in the profit opportunity, and it sounds like she's really dedicated to helping kids like this so that's cool. But my main concern is the enforceability of that contract. If she doesn't cough up the dough when it comes time, would it even be feasible to take her to claims court over $1500?

 

[evanescencefan91]

maybe ask if they have a car or something for colateral?

hmm, do they need the whole $1500 right away or could you maybe loan to them in small incriments?

 

[Brian]

Collateral is a good idea.

From what I gather it's needed in a lump sum...and there's about 5 days left till the deadline.

If I had like 200,000 or something it wouldn't be so big a deal...but, this is a significant portion of money for me.

I think I'm going to meet with her and talk in person. Gauge her financial situation and discuss collateral for the contract.

 

[Unacceptance]

Well if she doesn't pay up you could always get the fun of going the shady loan shark route.

 

[LonelyDragon]

I know this is someone in real life but I can't help noticing how much it sounds like some of those e-mail scams I keep getting. Especially the short deadline not giving much time to consider it thoroughly.

"And I really need it right away or everything will fall through and I'll lose everything."

The last one was to have 2 suitcases filled with $4 million shipped to me from Nigeria. (Do you know how much room that much money takes up? LoL)

I like the idea of the collateral. But talk to her in person. Don't make a deal using the BIL as a go-between.

 

[samba101]

Brian

You should have picked up the warning sign that she has filed for bankruptsy, whatever you do don't loan the money out she's not viable. Even though she sounds as if she is financially sound this seems iffy to me. Adoption costs more than $1500 this really sounds like a scam to me, there is legal work which doesn't cost cheap and I can't see countries allowing you to adopt children that easily, have you wonder how she can afford to pay you back when she has no job when the baby comes, unless she can afford to pay for child care and still work. If you do go ahead with it make sure your at the lawyers office when signing the contract to make sure everything is legal. Making a profit is fine but are you in the position to really loose that money if it comes to the crunch? The people you have leant to could be trusted and here all you know is a total stranger, look at judge judy when people go to the court to claim there money back, there's too many to count. If I were you I wouldn't be giving out a loan I'd just continure saving, I bet you'll be one of those elderly guys in years to come with $100 000 saved for retirement. Anyhow that was my point on this view.

 

[Bluey]

I would say no. Because if this person wants to make a difference then she should had been willing to save and work for that money. Doesn't say much about her that she is recovering from bankruptcy and she is trying to adopt a kid. I mean try cleaning your closet out at home be for you try and change the world is what I would say to her.

And I would assume she would not have any Collateral if she is bankrupt.

I know that sounds harsh. But if she is wanting to do something as admerol as this then she should be willing to sacrifice the things in life as you have to get the money her self. She also dose not appear to have learned her lessen when borrowing money as she is asking again to borrow from you. this person sounds like she has no back bone at all and I would say would not make a very good example to a kid anyway. Yes I know am a calace *******, But that's me

 

[Lonesome Crow]

F-that. He's making plans with you're money. That's
what my ex-gf used to do with her gambling addiction...freaken
plan out my money already...wtf ???

I mean he hasn't paid what he owed you and now he wants more.
That's scandle crap...man
The banks wouldn't let you get another loan if you didn't make
your payments becuase there's no emotions attach to it.

if you say yes...you're making a decision based on emotions
or guilt...screw guilt.

Playing Banker Eh ?
That's one of the biggest thing that'll break families apart
is loaning money out. I loaned my sister $1500 becuase she
said she was having problems...then 2 weeks later her kids
told me they went to fucken disnyland ...wtf ???
The kids didn't know anything about money situations....you know what i mean ?

I wanted to take my kids to fucken disnyland too.

She still hasn't paid me back after all these years.

If they arn't responsible enough with their finacial matters.
They're going to be too **** responsible in other aspect
of thier lives or be accountible..then they're going to adopt
a blind child ? wtf ??? Trying to scam the system and people
for money.

 

[Bluecrab]

I just wanted to add another “No” to the list. This is not a good investment. She is broke now and will be more so with another child to take care of. As for the brother-in-law (and your sister), you may want to have a little chat with them about discussing your money with random people.

Good luck with whatever decision you make.

 

[EveWasFramed]

OK wait...let me get this straight....
She wants to adopt a child, but doesn't have $1500 to pay legal expenses? Forget whether or not it's a good or bad investment! If she doesn't even have that much money saved, how can she POSSIBLY support a child?? Something stinks here. Sorry, Brian.

 

[Unacceptance]

Whatever you do, don't put your money where your mouth is, it doesn't taste as good as it looks.

 

[Naleena]

I used to loan my money out. I learned my lesson the hard way. If you loan it out, do it with the understanding you may not get it back. The story about the baby sounds fishey to me as well. Adoption is a process and surely someone who works as a social worker has some understanding of it. How could she get caught five days from the deadline without adequate funding? It's not like you get called up on Monday and someone says, "By the way, I forgot to mention I need 1,500 dollars from you by Friday." Somethings not right.

 

[Brian]

Well, she's been working on it for awhile. Apparently she has part of it from her boss.

I believe her story because my sister's talked about her before. She used to have a pretty freakin' huge house, but she moved out so she could afford to do this.

At any rate, I don't think I'm going to go for it. I don't know her personally, and I don't want to risk having to hound her for it. Besides all that, there's a good chance I'm moving which would put 50 miles between me and her....and I'd rather be close to people who owe me.


Also, I saw some people mixing her up with my brother-in-law who borrowed money. Different people I have no concerns about my sister and B.I.L. paying back...I know it won't be miraculously fast since he doesn't have a huge paycheck, but he's the sort who puts that kind of thing as his top priority.

Anyhoo, thanks for the feedback.

 

[Jesse]

I havn't read everyone's replies Brian, but my advice is not to do it. I have the policy of never doing business with friends of a family member. It can save a lot of trouble this way. Also, if she can pay you back in 3-4 months, this would be enough time for her to save up for herself. The child will likely still be there. 1500 is a lot to risk.

 

[john34mart]

Hello guys,

My name is Steven George Conville. I am from Canada and i am financial adviser. I give advices to people who get stuck in money investment problems, miss sold PPI, or any monetary issues.

Feel free to contact me for the help.
Thanks!

*link removed*

This isnt a marketing website. Thanks.