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Personal loan!

May 23rd, 2010 at 09:25 pm

This week, I made a personal loan to a couple that we have known for almost 10 years. As a matter of fact, we built their home.
They called us about buying a piece of property that they own, but we really were not interested. The property is designed for a high end home and if and when we build a spec house again, it will be a small house.

They wanted to sell, so they could buy another piece of property, so I offered to be their "banker" I loaned the money to them at 4% interest, which is double what I can get at the bank. It is a good deal for them too, cause they can't get a 4% loan at the bank.

The couple is retired and I don't know what his pension is, but he once told me that he gets six figures! That is more than we make. Plus he gets about the top social security. So I am not too worried about them making the payments.

Since this is a new source of monthly income, I am going to start adding the interest only, to my $20 challenge next month.

The braves won 5 games in a row, so I am adding that to the challenge today.
Prev. total $9237.00
today 5.00
new total $9242.00

Posted in $20 Challenge | 4 Comments »

4 Responses to “Personal loan!”

  1. Wonderlake653 Says:
    May 24th, 2010 at 03:09 am 1274670548
    1274670548

    Did you formalize the loan, i.e. prepare a contract? Just curious. What have they used to secure your loan?

  2. whitestripe Says:
    May 24th, 2010 at 08:11 am 1274688662
    1274688662

    that is nice of you to do that for a friend. i do wonder though, if they get so much, why do they need to get a loan??

  3. Ima saver Says:
    May 24th, 2010 at 09:21 pm 1274736065
    1274736065

    I had them sign a promissory note. I took nothing to secure the note but our friend ship. White stripe, that is a good question. They tend to spend a lot and not save very well. Since he will get a large pension for life, he feels he does not need to save much.

  4. matt Says:
    May 25th, 2010 at 02:01 am 1274752915
    1274752915

    this is very nice of you.....but money can spoil friendships....hope it works out

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