owner finance
04-24-2008, 07:17 AM
#1
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owner finance
ive goy a couple buddys wanting me to carry a note on a boat both r good financially, one just started a wrecker serv , one just bought a lake house so both credit to debt ratios r close, they want to give 6000 down on a 45000dollar note, for 3 years and then get there own financing. with the market the way it is im leaning towards this. what do u think.there will be a contract written by a lawyer,they will pay for insurance and repairs.
Last edited by johnnyboatman; 04-24-2008 at 07:20 AM.
04-24-2008, 07:28 AM
#2
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Credit worthy people can get all the financing they'd ever want at market rates. This would be a really bad idea on just one guy, but a partnership? Even if they're both good as gold, a pi$$ed of wife, a divorce or a bad business break for one of them sinks them both.
If don't mind losing the boat and the friends, I'd say go for it.
If don't mind losing the boat and the friends, I'd say go for it.
04-24-2008, 07:38 AM
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I would not do it on anything that depreciates or has an engine that can blow up.
I saw this exact thing happen a few years back and both parties lost.
I saw this exact thing happen a few years back and both parties lost.
04-24-2008, 07:41 AM
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Run. Run like hell. I did a partnership with my very best friend on a boat years ago and it cost us years of war over stupid chit that just should never have happened. It just don't work. I have seen way to many friendships go down hard over money.
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04-24-2008, 08:01 AM
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Regardless of how good their friendship might be, this is not a good ide. In fact, it's never a good idea to hold a note on something that can be moved, hidden orrapidly de-valued. Deals like this happen all the time, but the odds are stacked against the loan-holder on reaching the end with as much money/profit as assumed.
Play the odds on this one and don't do it.
Play the odds on this one and don't do it.
04-24-2008, 09:03 AM
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never...ever...carry a note on a boat that can and will have some sort of problem...he will not want to pay to fix it and then not want to pay for a boat that he can not use...it WILL cost you a friend....
