Lending my friend 5k

[Carl West]

My friend asked me to borrow 5k to finish some work on a property he’s flipping using hard money so he can get his next draw is this something I should consider if so how should I go about it? He’s offering me 7500 total once he sells

[James Galla]

Originally posted by @Carl West:

My friend asked me to borrow 5k to finish some work on a property he’s flipping using hard money so he can get his next draw is this something I should consider if so how should I go about it? He’s offering me 7500 total once he sells

Businesses turn friendships sour on many occasions. So, when considering whether I help friends and family out, I will provide money with the expectation that the money is squandered. Failure to repay won't result in some kind of adverse feeling from me, but I'll just make a note that my assistance won't occur again. I don't know the relationship between you and your friend, but maybe you've had other dealings with him that would inspire confidence. However, the only thing I need to read before I say "no," (or if you were me, expect your money to be completely squandered) is the phrase "so he can get his next draw." In other words, he has already failed in meeting his obligations to someone, perhaps a bona fide/arm's length third party, and now he is turning to you. I would exercise caution in giving him money since he may feel more liberty in treating you poorly versus some other third party. Good luck with your choice.