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Looking for some thoughts on Choice on investing in others

Topics relating to managing people and relationships

Soulrize

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Sep 21, 2014
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I'm a 22 year old minimal wage workering college student. I have a smart friend with a lack of opportunity in cambodia who needs a loan of 1000(and borrowing another 1k from relatives) to go to japan and learn skills and work over their in japan for an estimated 1400 a month . As a finance major I look at the opportunity cost and what do I want to achieve. My ultimate goal is starting a business over there with my friend with their domain knowledge and my capital. So I originally planned to invest that 1000 along with margin in order to have more money by year end. However, I offered to give the loan costing me 1k in return for payment in the future of 1k by May assuming (1 month paper work, 1 month studies, 1 month completed work +1 month for error) with the concession that any savings she has, she will allow me to borrow to invest which would lead to a extra 5k to reinvest and earn money on. On top of the fact traveling to new countries helps increase knowledge and bring ideas among all sorts of things that come with new environments. The risk that I believe are entailed are that the company could be a scam (common in cambodia) or the paperwork can take a longer than expected and cost time plus hardship because she doesn't have a job anymore and committing to this prematurely in my opinion, on the basis assumption that I already WOULD lend the money.
Am I doing the right thing? am I missing information? Any other risk I don't see? Just looking for other Points of views.
 
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Motley crue

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Value/Post Ratio
80%
Apr 28, 2015
45
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Portland, ME
Do it, and if you would like i can give you the contact info for a Nigerian prince who can hook you up with a few million dollars.

Kidding of course, sounds sketchy to me, I'd hang onto the money. Things like this are scams more often than not, especially if the opportunity is coming from undeveloped countries
 

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