Friend wants to borrow money, owns lots of RE
Just had breakfast with an old friend (high school) who has 13 houses, bare commercial land and back taxes.
He is negative cash flow but always borrowed his way out of jams with his equity.
He is foreclosure close with his property taxes and wants to borrow, pay 9%, to pay 1 year to keep from foreclosure.
I told him I would consider buying his tax liens on his free and clear commercial property. Just didn't quite know what else to say.
What would you do? What would you say? Is loaning money to a friend ever a good idea? Ever have it work out well?
Thanks Bill. I'll make him that offer.
Jeff- In the first post I said financial counselor- which is what this guy really needs. The second post I said some type of financial advisor (speaking loosely). Yes, most traditional advisors are just salespeople, much less wise investment people. So I do agree in with you.
I was thinking what might really help him long term, his 'disease' so to speak. Depending on how good a friend he was etc.
If he does take it, Bill's suggestion will certainly help with his symptoms and maybe you will profit too. Sounds like he doesn't want long term help so maybe you can be there when/if more symptoms show up.
