Updated over 12 years ago on . Most recent reply
Gotta love the kid!
I have a nephew that has been rehabbing homes in Indianapolis and over-extended himself financially. In short, he needs $4K for living expenses. He currently has two homes on the market (listed only two weeks ago), which are expected to yield over $80K in profit. He holds clear title to the properties (consumed ALL of his working capital – no loans/outside investors).
Knowing that I refuse to lend to friends or family without the same protection I would require for a stranger, he asked me anyways (desperate times) - but only offered a promissory note. Although my first thought was to have his title company draft and record a trust deed/mortgage (accompanied by a promissory note), it may be impractical and cause problems if/when he actually sells the properties. Any simple, fast and effective ideas or recommendations out there for me?
FYI – The kid has already learned his lesson of being over-extended and not having adequate exit strategies. His pride got in his way of his judgment – otherwise, he did a GREAT job on these properties. I do, however, want him to REMEMBER the pain of poor planning…