For questions related to private lending between individuals that (usually) does not pass through a third party, e.g. a bank or other financial institution.
Questions tagged [private-lending]
17 questions
40
votes
7 answers
Friends come with hat in hand, but I don't think it will help
I have two friends, a married couple with a ~1yr child. Shortly before they had the child, they moved in with his grandparents. The grandparents are apparently unwilling or unable to care to the child, so the father quit his job and became a…
Brian S
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16
votes
1 answer
What does it mean if a lender asks for a "title" from your purchase?
My boss at my company has agreed to lend me money to buy a car to use for work, where I would pay him monthly for a couple of months until it is paid off.
Upon giving me the money, he asked me to give him a "title" once I bought the car. I wasn't…
douk
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8
votes
2 answers
How do I arrange a private mortgage between myself and a trusted individual?
I live in the UK. Specifically, how do I draft a loan agreement that provides basic safeguards for borrower and lender (very basic safeguards, as we're talking about an intra-family loan and the level of trust is very high), and also satisfies tax…
jl6
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7
votes
2 answers
What are the procedures or forms for a private loan with the sale of a vehicle?
I'm doing something that I don't normally do: Mix friendship with business. I'm purchasing a vehicle from a friend but can not pay the full amount. We've agreed to have me put a down-payment for the vehicle and I'll pay it off over a year with 0%…
Anthony Miller
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5
votes
4 answers
Am I paying too much in mortgage interest?
Hi there all you smart people.
I am looking for a hand on a mortgage I currently hold. I will give a little back story to hopefully let you see where I am coming from.
I have a summer home (the only property I own) and was unable to get a…
JollyGoodTime
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3
votes
5 answers
What should I do when my friend doesn't pay back a loan I gave him?
I lent money to my friend for his wedding through my credit card. It was around $5,000. He said that he would pay me back within 1 month. It has been almost 5 months. Every time on his salary date I remind him of the amount he owes me. He sends the…
Ali Khan
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3
votes
1 answer
Someone gave my sister a bad cheque, what should she do?
My sister's ex-boyfriend convinced her to lend money to him so that he can lend it to some unidentified person. She lent him $25 000, and her ex probably lent $63 000 of his own money to this unidentified person. So the principle is assumed to be…
user2213307
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2
votes
1 answer
Use of Self Directed IRA for Lending Second Mortgage
Here's the scenario: Let's say that I have someone who wants to borrow money from me to buy or rehab a house (i.e. secured loan), but I do not have enough money in my personal savings or self directed IRA to make the loan. Could we draw up two…
Jim Fell
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2
votes
4 answers
How would a mortgage lender evaluate an existing private mortgage with no monthly payments?
I have a private mortgage for my house in the US. (Not seller-financed. My parents are the lender.) The lender gifts me the interest amount each month and only the interest is paid on the loan. So, the principal is not changing and I effectively pay…
Fortunate Home Buyer
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1
vote
0 answers
Lending club investments through a numbered company for favorable tax?
I'm part of a lending club in Canada that has just allowed corporate lending. My marginal tax bracket in Canada is 26%, so I'm trying to figure out if there is an advantage to lending through a numbered provincial company.
For example, any interest…
Drakes
- 119
- 2
1
vote
1 answer
Borrowed money from a friend to pay College fee - Implications of not paying
My wife is a US Citizen. She borrowed money from a friend to pay for her college.
She is unable to repay on time. She needs a bit more time, but unfortunately the lender is not ready to wait. He wants to file a complaint. Can you explain me the…
syed ahmed
- 11
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1
vote
1 answer
Borrowing from your parents on a mortgage, with money they borrow from a bank
Disclaimer: we know this is financially stupid, but this is my wife's health we are talking about. Yes we know we didn't make the most financially smart decisions
Situation: We bought a house in December 2014. It's an apartment with no elevator and…
Kevin
- 233
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1
vote
0 answers
Would a lender deposit money in my account and want me to send back
I applied for a loan and was told I was approved they said they were going to deposit a small amount and I was to send it back and they would release to loan amount is this legit? And the amount that was mentioned was 850 I believe
Anthony Paul
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1
vote
2 answers
Lending money to strangers
A person I met online came to me asking for $200. He said he needed it to pay for a very important bill and he will pay it back on Monday. He also said he wouldn't be able to provide any liquid collateral, but he could send me pictures of his…
Benjamin2002
- 186
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1
vote
2 answers
Can I return money to parents even when we didn't have a formal agreement in the US?
For example, if I return US$30,000 to my parents, considering that they lent me money for my university tuition, can that be considered to be returning borrowed money, even though there were no formal written borrow agreement?
Otherwise, isn't it…
deeper-understanding
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