loaning out money

[Whaazup17]

What is the "proper" way to loan out money. Like the banks do it..

[Dunecune442]

have a contract written and notarized by all parties.

IMO dont do it, something always "comes up".

EDIT : make sure the contract is very specific on ALL terms such as interest, payment type (monthly or lump sum), date money is due, date money lent, date signed, terms of agreement, disclaimer, etc. If youve never written a contract I recommend researching.

[Whaazup17]

Really it would be best to get a lawyer to write the contract huh?

[Malevolent X]

Buy a government bond.

[tampamax]

Read this, memorize this, and know that this is a constant that will remain with humanity forever. NEVER, loan money to anyone you know and expect it back. If you do give money to someone you know then consider it just that...a gift. You will have to learn this the hard way a few times before you catch on though.

[moldyhands]

Read this, memorize this, and know that this is a constant that will remain with humanity forever. NEVER, loan money to anyone you know and expect it back. If you do give money to someone you know then consider it just that...a gift. You will have to learn this the hard way a few times before you catch on though.
while that's definitely common, i wouldn't say it's always the case. among myself and two of my friends, we've all loaned decent amounts of money to each other. never once worrying about its repayment. and each time, it was repayed.

that being sad, unless it's someone you'd trust your life to, i would require a written, signed, notorized contract.

[Miles]

i've never once loaned money to anyone whose bedroom i didn't have ready access to so i could shit on their pillow if they didn't repay me.

[Whaazup17]

Then how does amscott and ace cash do it ?

[Miles]

Then how does amscott and ace cash do it ?
ungodly high interest rates, an army of collections agents, and i would assume they take some kind of crazily disproportionate collateral.

[Amortized]

What is the "proper" way to loan out money. Like the banks do it..

the proper way like banks? you aren't a bank, you will not be regulated like one, therefore you won't be required to act like one when you loan money. if you're asking how to loan money to protect yourself as an idividual, all you need in the state of florida is a signed promissory note, doesn't even have to be notarized, will allow you to file a judgement if debtor doesn't come through.

[Joe]

FYI:

Give a personal loan, give a gift.

In other words loan out money and don't expect repayment. Honestly, if they can't get a loan on their own these days, then you definately don't want to loan them any money either...

[Amortized]

Honestly, if they can't get a loan on their own these days, then you definately don't want to loan them any money either...
truer words have not been spoken.

[BigBadBuick]

What exactly are you trying to do? Is there anything they can secure the loan with like putting you on as a lien holder on their car? Letting you hold something like jewelry as collateral? In this day and time I would be very hesitant to just loan someone money without having it secured in some way.

[Whaazup17]

waht that is what I was trying to figure out is what I could use for collateral

[BigBadBuick]

The only things you could legally "take" if they default would be something with a title like a car, boat, motorcycle, etc. and you would have to have a lien recorded beforehand (at the time of the loan). You could also be put on as a mortgage holder if they own real estate (I don't know how much money is involved here). Otherwise, you will have to be in possession of the property before hand and hold it as collateral. There is no "give me your stereo" after they default, then it's too late and you will have to sue them, get a judgement against them, file against them, and hope that one day they start giving a shit about their credit and come back to make good with you. Whatever route you take, make sure your contract clearly states everything such as payment schedule, interest rate, conditions of default, EVERYTHING, and of course EVERYTHING has to be legal or the whole contract is junk. Otherwise, you are giving money away. The other route is to get over all this legal stuff, hire some 400 pound meat head to collect for you, and charge 100% interest :lol:

[moldyhands]

side note - i'm SOOOOOOOO tempted to edit BBB's post just because i've been waiting for the day to fuck with him, but i'll resist, for now:lmao:

[BigBadBuick]

I told them it was a bad idea to give a midget power, but nooo................

[Whaazup17]

sorry about the long delay. So bigbadbuick, How could I do that get the title to their vehicle?

How does amscot do it?

[number_2]

:lol:

i voted him into power, bill. what was i thinking?

[TNathe]

How much $$ are you talking about? If you want the title to their vehicle as collateral you need to draft a contract saying that the title will be held until x number of $$ is paid and at what frequency these payment are to be made, how many late payments they are allowed until you come "collect", etc.

[Equinox]

I seem to remember there is some little issue of registering certain type of loan documents with the state so they are on record. There is a fee to do this. I don't remember if all types of loan documents require this or just some types(mortgauges, for instance)

A little bit of advise-- Loaning out money to people expecting to make money on it is a really bad idea unless you are prepared to break their knees to 'encourage' them to repay you.

If you insist on doing this try to get some asset as collateral on the loan.. Vehicle Title, jewlery or something. If possible try ot keep physical possession of the asset for the duration of the loan.

[TampaTraps]

how amscot does it is they take a post dated check from you for the amount of money you borrowed plus the intrest max is 500 and they charge like 50 bucks for it. now you wont get 500 the first time, they take your last few check and see how much you make on avg if you make 500 every two weeks they know you can't pay a 550 dollar loan back, so they start you off small with 50-100 and then after you prove yourself to them they bump you up another 50-100, they check you bank 6to make sure you have a checking account, and if you default them you wrote a bad check and that's a crime.


i am in this bind to right now a freind wants 400 bucks, he's a very good freind(just bad with money), he's help me before when i had no place to live and hooked me up, he promises to pay me 100 extra and he already gave me a mini-bike(it's a pos but it's fun) that i can keep for free. now i still haven't lent him the money, but i am going to ask for 400 in colllateral from him on top of the mini- bike so if he doesn't pay i still come out on top.

[Equinox]

FLORIDA, the legal rate of interest is 12%; the general usury limit
is 18%. On loans above $ 500,000 the maximum rate is 25%. Usury is basically a loanshark law... So if you want to make any sort of reasonable interest on your money for these obviously high risk loans, it's illegal.

Amscot "borrows" a national bank license in order to get around Urusy laws(that's how credit cars can be above that rate too). They also do huge volume.. When you make 400% on your money who cares if you loose a few loans? But in short what they do isn't available to the common joe.

Writing a bad check that is post dated isn't as serious of a crime as writing a bad check.. But it is still a crime.(Willfully writing a bad check on a closed account for instance is a felony)

If I loan money to friends now I just kiss it goodbye.. It's a pleasant surprise if it comes back. If you are trying to maximize your chances then:
1. Get as much collateral as possible. Value it at it's pawn value not some imaginary original purchase price.
2. Have him write you a post dated check, or several for payment installments.
3. Find your local guido and find out how much a knee breaking is. ;)