For many people, lending money to those close to them is a potentially jeopardizing factor for their relationship. The higher risk of a default and the few enforcement options available means that you could have strained relations with those around you as a result. But it can often be impossible to say no when we have the ability to help out our loved ones when they are in a serious bind. So, how do you go about helping them out?
The biggest mistake you can make is to lend out money on good faith. You need to treat the loan as a contractual obligation, just as you would if you were loaning out money to a complete stranger. By creating terms ad a repayment schedule that are legally binding, you will be able to ensure both your money and relationship with your loved ones are protected.
This article provides some insight on how you can lend out money successfully to those close to you.
Osterland McCarthy began his own real estate development company Osterland with his friend. In this capacity, he bought and rehabbed investment properties for their own portfolio. Over the last few years, Osterland has developed hundreds of properties in the two cities. He started to help investors who want to own investment properties but want to rely on our experience to execute successful projects.