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I have two questions for you (borrowing from family)

Kak

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So screw you tight bastards that have 6, 7, or 8 figure bank accounts that think you can take it with you.

Really? You had a spendthrift nightmare of a girlfriend and you blame her rich dad because she drove you into the poor house?

Newsflash. He didn’t and still doesn’t owe you shit. Nor do any other rich bastards. It was YOUR fault.
 
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NMdad

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First, do NOT borrow money from family or friends. It can poison the relationship.

Second, get clients BEFORE you spend money on any machines. Have them pay you a deposit before you start any work, and use the deposit to rent the machines. Or, use the entire client fee to pay for the machine--in other words, the client pays you for the service, and you buy the machine; in this case, you would essentially do the service for "free" but you would own the machine.

Find out who else might have the machines, and ask to rent them. See if you can find any used machines for a discount. There might be people/businesses who own the machines but don't always use them, and you could offer to rent the machines while they aren't using them (like outside of regular business hours, or for 1 day or 1 weekend at a time).

If you have paying clients and renting is NOT an option, it would be better to NOT pay the full price of the machine right away; see if you can arrange payments to purchase them.
 

minivanman

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Don't agree with this. Of course it's a huge risk with lots of horror stories out there, but what do you think wealthy families do? They borrow/lend seed money from each other all the time, which is a HUGE advantage over the rest of us who have to start from nothing. Under-capitalization is what kills most businesses before they ever get off the ground.

I personally know of multiple entrepreneurs who were only able to start with investment from family. One woman nets $200k-$300k/year profit distributing pull tabs for the past 10 years. She was broke and unemployed when her grandpa gave her $50k to start. Another woman I know borrowed money from her folks to start a chain of dance studios. I know a guy who owns a car dealership that was purchased using his dad's money. Also know a guy who owns a 7 figure agriculture operation - financed through family.

One woman nets $100k/$200k..... 2000 people borrowed money from their family and now they are enemies. Agree or not, it's the truth.... 1 vs 2000.

Now about your theory..... what do I think wealthy families do? Well, I know several and none have done what you say they do. I'm not saying there aren't any but you act like every wealthy family does that while it's probably very rare. Every family that has over $1 million (usually way more) that I know has made their kids/family members work for it. Let's take a famous Nascar driver that I know. His brother wanted to be a racer like him. He did not fund his brothers racing career. He helped his brother a little bit with a mini stock ($3500 total cost). Then I introduced the Nascar driver to some friends because he wanted to play on some local dirt tracks. That connection lead to his brother racing a super late model. He still never gave his brother any money. Now let's take an example closer to home.... me and my grandson.... we have all laid out a plan for him and it does not include any free money from us. If he strays from the plan, that is his choice. I will always be here for guidance but not money. He wants to own a chain of garages..... could we fund this in the beginning? Sure we could.... will we? Not a 1% chance. You see, once you are at the top of the ladder, you see things much different than someone who is looking up the ladder. Now on another note..... GIVING money to someone is a whole other topic but we are not talking about GIVING.... the OP is talking about BORROWING. I GAVE my sister $2,000 but I wouldn't have ever LOANED it to her.
 

biophase

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Do you really WANT a relationship with someone that is going to feel "burned" that you borrowed 50K and things didn't work out, so you couldn't pay them back on time? (I'm talking about the guy that has ten mill - not the average dude). Who the F*ck needs some greedy bastard like THAT? Their second true love is money - I'm sure their first is themselves. They have nothing left over for anyone else, or pitifully little if anything.

I have had people offer me the last $20 they had before. Not the VERY last, but the last before payday. They would eat bologna sandwiches for four days in order to help me out. I didn't take it, by the way. But I now know what these people are made of, and I cherish them as friends. Others - like I explained before, were content to sit on the sidelines and watch me spend every dime I had while counting the interest they were making on their MILLIONS while I was dying. F*ck THEM!

Here's an interesting story most here will love. My fiance, with her super super wealthy parents (worth over 100 mill) - are all planning the big Christmas holiday. Wow - I've never gotten a present, or given one, to a multi-millionaire before. I hadn't looked forward to Christmas like that since I was a kid. I asked my fiance if her Dad had asked her what color of Lambo I liked best. No. I asked her if her Dad asked if I wanted a helicopter. I always wanted one of those. No. Yacht? No. Hmmmmm. I know it's gonna be good - can't wait. Christmas day comes, and I get a very large, and heavy box. Must have weighed 6-8 pounds. This was like winning the lottery! Wow! Turned out it was a HALF a VCR. A half VCR is the kind that only plays tapes. It doesn't have a tuner so you can use it to watch or record off TV. I think they were $20 at the time. Never did unpack it. Put it on the shelf as a regift someday. A half a VCR. Wow. Couldn't even spring for the full VCR. If that was me, I'd really be embarrassed. I'll remember that forever. Is that what anyone HERE wants anyone to remember about them? Does anyone here want to be remembered as a cheap a$$? That's a good way to do it.

My experiences. I'm glad I had them because they were like a good movie. But once you see the movie, you never want to see it again.

To put things into perspective - as I mentioned before - her parents wrote a check for about $450K to buy a house for us. To LEND us $50K to get by would have been nothing for them. Get another job - you can make it boy! When I was your age... nobody ever gave me anything... I'm my own man... ya, ya, ya...

And here we have people telling this OP to NOT work with his brother. How pathetic is that?

How about a mother? No - let the beech starve. Father? Sister? Best Friend? FIANCE? Let em all starve!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Yet, through all of this shit - it only reinforced what is truly important in me. Instead of turning into a cheap a$$ - which I easily could have - I am now even more compassionate and generous. I have had many people tell me that I'm a very generous and caring person. I'll take those words to my grave. The rich bastards will NOT be taking their wealth to the grave. Maybe their reputation? Ha. More likely their kids will be glad they're gone because now they can get their hands on the money.

Once again - USE the money to do something. Money is a TOOL. If your ultra-rich Uncle likes to bask in the glory of his money - let him. If he was my Uncle, I wouldn't have the time of day for him. What is the purpose of him even BEING here if he is of no help to anyone? Exactly. Nada.

A REAL man - which there are so very few of - would have stepped up to the plate withOUT being asked. What are people saying about YOU behind your back? Think you're admired because of the size of your bank account? Think again.


All these stories sound like they are your fault. Just because someone has money doesn’t mean they are obligated to lend or give you any. You don’t deserve sh!t. And based on the attitude of your posts here I can venture a guess that your fiancées parents probably were too fond of you. You probably came off to them like you do here, hoping for a helicopter on Xmas.

I hate people that say aw cmon you can afford it, you have $xxxxxx dollars. Those are exactly the type of people that I never help.
 
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biophase

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If you abandoned your kids, that's okay. Me too. Worthless fathers abound.

No, she couldn't get a job to replace her income. It was over $200K.

Why were expenses so high? You're gonna love this one. She inherited $50,000. What did she do with it? ...Bought a sports car and the payments were STILL almost a grand a month.

After the doo doo hit the fan I said the first thing we gotta do is dump the car. WHAT? Might as well have spit on her grandma's grave saying that. Do you know how much money she would lose if she sold that car? That's the response I got. I know, I know - F*ck me.

Dumb bitch. Even dumber me.

Well there you go. She got $50k and was irresponsible with it. Most likely she has been irresponsible in the past with her money. This is why the parents didn't give her any more money.

Of course you come along as the sucker who is still giving her money and trying to help her when she doesn't even want the help. You couldn't see that she had a past history of blowing money.

And now you blame her parents for her being broke?

What doesn't make sense is that you know that you were duped. You know that it was ALL your fault, but yet you think that if her parents would have just given her $50k or $100k, all would have been solved? You are delusional. How do you not see that her parents cutting her off was the right thing to do?
 

Ernie McCracken

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Borrowing money is never a great idea but borrowing it from a family member would be the WORST!!!

First, do NOT borrow money from family or friends. It can poison the relationship.

Don't agree with this. Of course it's a huge risk with lots of horror stories out there, but what do you think wealthy families do? They borrow/lend seed money from each other all the time, which is a HUGE advantage over the rest of us who have to start from nothing. Under-capitalization is what kills most businesses before they ever get off the ground.

I personally know of multiple entrepreneurs who were only able to start with investment from family. One woman nets $200k-$300k/year profit distributing pull tabs for the past 10 years. She was broke and unemployed when her grandpa gave her $50k to start. Another woman I know borrowed money from her folks to start a chain of dance studios. I know a guy who owns a car dealership that was purchased using his dad's money. Also know a guy who owns a 7 figure agriculture operation - financed through family.
 
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MJ DeMarco

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This is about $3,000?

And here I thought we were talking about $50G or something.

Have to agree, if you can't save $3G in a job, there might other considerations here...
 

Kak

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Do you have a credit card?

A word of caution... Micro businesses that only take $3000 to start are usually one of two things...

1. Unscalable owner operator jobs.
2. So unbelievably competitive, that you your likelihood of failure is higher than if you just went for something more legitimate.

If you can see it falling in to one of those categories, maybe save yourself some time and scrap the whole thing.
 

Thoelt53

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@Real Deal Denver take a Valium ffs. This thread is about a dude who wants to borrow $3k from his brother... the personal lives of Jobs and Lewis are irrelevant here, for two reasons. 1) it’s none of your business, and 2) you don’t know what happened behind the scenes. No one outside of their family circle knows the truth. So let’s not make assumptions for either side.

Real Deal Denver said:
To put things into perspective - as I mentioned before - her parents wrote a check for about $450K to buy a house for us. To LEND us $50K to get by would have been nothing for them. Get another job - you can make it boy! When I was your age... nobody ever gave me anything... I'm my own man... ya, ya, ya...
The family bought you a huge house, and you were upset that they wouldn’t give you MORE?? Get a grip.

Lots of lessons in this thread. The biggest one is DON’T HOLD ONTO THE PAST. It will eat you alive. The past is gone, there is only now and the future.
 

Longinus

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As soon as my sister heard my business was taking off, she also offered me to borrow money. I don't want to because:

- If it boosts my business, I owe her. (even if I pay it back).
- If I fail, I owe her (because I can't pay it back).

Both outcomes to be avoided.

Find another way. The "borrow money"-way seems the easiest, but will be the hardest.
 

minivanman

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So we are having this conversation over $3000? Come on, if you are serious, you can get a 2nd or 3rd or 4th job and save that much in just a few short months.

I'll warn you that if you are trying to do this with the very least money possible, just know that you will probably need more money. Something is going to come up, so keep the 2nd/3rd/4th job for a little while to make sure you have the funds needed.

You need to have more jobs before next Monday.
 
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Kak

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How about a mother? No - let the beech starve. Father? Sister? Best Friend? FIANCE? Let em all starve!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

No one suggested letting people starve strawman.

A REAL man - which there are so very few of - would have stepped up to the plate withOUT being asked

A real man would lead and take care of his family, not let them slip into financial disarray where you have to ask a more responsible person to “cover for you.” It isn’t uncle moneybags’ job to take care of you.

Think you're admired because of the size of your bank account? Think again.

No. Clearly the socialists like yourself don’t like me. Save your argument for a pocahontas rally.
 
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Kak

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Per this sidebar... I’m not a parent, yet, but I have understood something about raising children into good productive adults... You don’t solve all of your kids’ problems for them, even if it is really damn easy for you.

Enabling creates dependency.

To the op... $3 grand isn’t that much money. Find a way. You could probably get a real loan. Or a temporary job.

Like it or not... owning a business is ON YOU.
 
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Thoelt53

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How much money are we talking about?

If things go bad and you're left with depreciated machines, and still in debt to your brother even after selling the machines, how will this impact your relationship with him?
 

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@MJ DeMarco @minivanman - Appreciate the help guys!

There seems to be a misunderstanding. It's not like i can't get the money i need by myself, and i've never asked my brother about the money. We had a family dinner, and i was asked about my plans. My brother liked the idea, and got fired up about it and offered me the rest of the money i need. Before that it was never an option for me.
I work two jobs already. It just got me thinking, cause the faster i get off ground with the business the better. Because of your guys input, i won't take my brothers offer. This is MY project. '

I hope I won’t look like a lazy a$$ for asking that question, because I’m not.

As soon as my sister heard my business was taking off, she also offered me to borrow money. I don't want to because:

- If it boosts my business, I owe her. (even if I pay it back).
- If I fail, I owe her (because I can't pay it back).

Both outcomes to be avoided.

Find another way. The "borrow money"-way seems the easiest, but will be the hardest.

Thanks man. I decided to do it without my brother.
 

MJ DeMarco

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If you borrow from your brother I would suggest getting everything in writing, no different than if you borrowed from me, or your neighbor.

Good luck!
 
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MHP368

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Do you really WANT a relationship with someone that is going to feel "burned" that you borrowed 50K and things didn't work out, so you couldn't pay them back on time? (I'm talking about the guy that has ten mill - not the average dude). Who the F*ck needs some greedy bastard like THAT? Their second true love is money - I'm sure their first is themselves. They have nothing left over for anyone else, or pitifully little if anything.

I have had people offer me the last $20 they had before. Not the VERY last, but the last before payday. They would eat bologna sandwiches for four days in order to help me out. I didn't take it, by the way. But I now know what these people are made of, and I cherish them as friends. Others - like I explained before, were content to sit on the sidelines and watch me spend every dime I had while counting the interest they were making on their MILLIONS while I was dying. F*ck THEM!

Here's an interesting story most here will love. My fiance, with her super super wealthy parents (worth over 100 mill) - are all planning the big Christmas holiday. Wow - I've never gotten a present, or given one, to a multi-millionaire before. I hadn't looked forward to Christmas like that since I was a kid. I asked my fiance if her Dad had asked her what color of Lambo I liked best. No. I asked her if her Dad asked if I wanted a helicopter. I always wanted one of those. No. Yacht? No. Hmmmmm. I know it's gonna be good - can't wait. Christmas day comes, and I get a very large, and heavy box. Must have weighed 6-8 pounds. This was like winning the lottery! Wow! Turned out it was a HALF a VCR. A half VCR is the kind that only plays tapes. It doesn't have a tuner so you can use it to watch or record off TV. I think they were $20 at the time. Never did unpack it. Put it on the shelf as a regift someday. A half a VCR. Wow. Couldn't even spring for the full VCR. If that was me, I'd really be embarrassed. I'll remember that forever. Is that what anyone HERE wants anyone to remember about them? Does anyone here want to be remembered as a cheap a$$? That's a good way to do it.

My experiences. I'm glad I had them because they were like a good movie. But once you see the movie, you never want to see it again.

To put things into perspective - as I mentioned before - her parents wrote a check for about $450K to buy a house for us. To LEND us $50K to get by would have been nothing for them. Get another job - you can make it boy! When I was your age... nobody ever gave me anything... I'm my own man... ya, ya, ya...

And here we have people telling this OP to NOT work with his brother. How pathetic is that?

How about a mother? No - let the beech starve. Father? Sister? Best Friend? FIANCE? Let em all starve!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Yet, through all of this shit - it only reinforced what is truly important in me. Instead of turning into a cheap a$$ - which I easily could have - I am now even more compassionate and generous. I have had many people tell me that I'm a very generous and caring person. I'll take those words to my grave. The rich bastards will NOT be taking their wealth to the grave. Maybe their reputation? Ha. More likely their kids will be glad they're gone because now they can get their hands on the money.

Once again - USE the money to do something. Money is a TOOL. If your ultra-rich Uncle likes to bask in the glory of his money - let him. If he was my Uncle, I wouldn't have the time of day for him. What is the purpose of him even BEING here if he is of no help to anyone? Exactly. Nada.

A REAL man - which there are so very few of - would have stepped up to the plate withOUT being asked. What are people saying about YOU behind your back? Think you're admired because of the size of your bank account? Think again.

Well I havent asked. Because it isnt my money , him being my dads brother doesnt give me any right to it.

You dont think rich people have anxiety about moochy relatives? Or havent been asked to fund pie in the sky half baked business ideas?

Frankly I think id rather ask when I have something going and an infusion of cash would allow me to 10x the thing.
 

minivanman

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Per this sidebar... I’m not a parent, yet, but I have understood something about raising children into good productive adults... You don’t solve all of your kids’ problems for them, even if it is really damn easy for you.

Enabling creates dependency.

To the op... $3 grand isn’t that much money. Find a way. You could probably get a real loan. Or a temporary job.

Like it or not... owning a business is ON YOU.

The biggest problem in America is that parents are not raising their kids to be great, self-supporting adults. Parents are raising their young kids to be big, dependent kids.
 

biophase

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Per this sidebar... I’m not a parent, yet, but I have understood something about raising children into good productive adults... You don’t solve all of your kids’ problems for them, even if it is really damn easy for you.

Enabling creates dependency.

To the op... $3 grand isn’t that much money. Find a way. You could probably get a real loan. Or a temporary job.

Like it or not... owning a business is ON YOU.

There are plenty of parents that find their kid’s businesses. Nothing wrong with that. Most people think if they got $50k to start a business that they would be successful. So they blame it on lack of capital. But it’s really all about skills. Just look at shark tank and the number of people who sunk hundreds of thousands into failing businesses.
 
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biophase

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So there I was left holding the bag with very few options. What would YOU have done?

PS - I do appreciate your response very much. Thanks!

I do have two true stories to share.

When I went to college (and my parents did pay for it), my parents would give me a check for $10,000 per semester. That check covered tuition, rent, utilities and all food and expenses for the entire semester! My parents trusted me with a $10,000 check at 18. And every semester, I made it last and never asked for more.

My friends (who's parents paid for their college) got $1000 a month and their parents directly paid the college and the landlord.

Why? Because parents know their kids and they know who is responsible and who isn't.

My second story, my friend Tom once went to his parents and asked for $500 (when he was 24) and his mom just went and gave it to him. His aunt who was there was shocked. But his mom told his aunt, Tom would never ask for money if he didn't need it or have something important to use it on. Now Tom's brother Mike, never got a penny from the mom because he was frivolous and irresponsible with money.

So I think in your case, your fiancee probably was Tom's brother Mike, her parents were probably sick and tired of bailing her out. At some point it has to stop. And you just happen to be there for her parents to offload her burden on to you.

If I was in your spot, I would have told her to find a job no matter what it paid. I would have probably paid the expenses for a few months but seeing that it wasn't going anywhere, I would have stopped. I would have made her sell the car.

I assume the house wasn't under your name, so why pay the mortgage? You were an enabler and you didn't know it. What you were doing was enabling her to keep her standard of living without accepting any responsibilities for it. If you stopped paying the mortgage and for utilities, what would have happened? I doubt she would have been happy when there was no power and you were both sitting in the dark. She probably would have asked her parents for money.
 

The Abundant Man

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"Borrowing from brother"

Time to go no contact

2W2cmtC.gif
 

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Just like any loan / investment in your business, do they add anything besides the money? connections? workforce? assets? sales? don't just take money.

if your brother is fired up about investing and you write up a simple loan agreement, use the $3k to get started. he volunteered it. offer him 10% return and go make 100% with it. be clear in the agreement he gets nothing if you fail. then don't fail.

[this assumes $3k is pocket change for the brother and he is mentally lighting fire to it as he hands it to you..... if he is liquidating his 401k and giving you all the money he has in the world, do NOT do it]
 
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Real Deal Denver

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This is an extremely sad thread for me to read.

I once had a fiance whose parents were multi-millionaires. She lost her job. I worked my a$$ off to pay the bills but ultimately couldn't do all of them. Almost drove me to kill myself trying to stay afloat.

She wouldn't ask dear daddy for any money because, in her family, that's "just not done." So I get sucked down this whirlpool.

Eventually, I ran out of money. Didn't even have ten dollars she needed one day to pay a kid to mow the lawn. What happened? She threw me out. Nice. This is after I gave 100% of what I had to give. Ever give 100% before? Try it.

So I leave, dead broke, and depressed. She calls up her daddy because now there's no choice, and everything is fine and dandy.

Put me into financial hell. I couldn't even afford FOOD. Drove me into bankruptcy.

Don't know how I survived, actually. Screwed up my life for YEARS.

So screw you tight bastards that have 6, 7, or 8 figure bank accounts that think you can take it with you.

I'm a much better man for it today. I always thought her, or her daddy, would throw 20-30K my way to "reimburse" me for what I gave. He owned five oil wells "just for spending cash" so even 100K was nothing to him. What a stupid dream that was. Never happened. No surprise there.

I know several people like that still today. Lots of money, but tight as hell. Although I am cordial to them, and they think everyone likes them - I actually despise them and can hardly stand to look at them.

Am I bitter? Hell no. If I was your brother or even your friend, I'd sign the check for you. No written agreement - no terms - no tainting our friendship. If you never pay me back, fine. There is SO much more that's important in life that's above stinking money. That's why I gave all. I value PEOPLE over money.

TAKE your brother's money. It can make your relationship stronger and closer. If I was your brother, I'd be honored to be ABLE to help you. Course, you have to hit bottom to appreciate that kind of POWER to be ABLE to do something like that. I would be PROUD to be able to help you. I'd also be super proud that you are taking on this venture! I'd be your number one fan! What else besides money can I do to help you? But, that's just me. Different.

For the rest of you tightwads, have you checked your stock accounts today? Did you make an extra 3 F*cking percent today? Great!!!!!!!!!!!!!! You can have your money. We can only HOPE that you'll have even MORE tomorrow! I feel sorry for you. Really. You'll never the experience of having pure joy at being BLESSED enough to help someone else. Of course, unless you have your attorney draw up a CONTRACT on how you will be paid back, and have it notarized. And you'll be counting how many pennies that contract will be making you every day - oh, the pure joy of it all... bliss!

My wife is from a different culture. She and her family thinks about HELPING somebody as I have explained here. Sad to say, but I respect them much more than my family, that keeps track of every little thing they have, and how they compare to their friends and neighbors all the time.

I just had an argument with a close friend about this. I said that money can be replaced, but their character and who they are, and how they think, will be with them forever. Think that over - thank your brother for being such a great human being - and go make this happen!!!

One more thing. Think like the people on Shark Tank. They bring a shark into their business so they can be more successful. Could you do that with your brother's help? Open the door for him. If I make a dollar for every dollar my brother makes, I'm fine with that. I'd much rather have both my brother and I each make a dollar than me make $1.25 all by myself. Two heads are better than one, and you have a trusted partner/co-worker - and a back up plan. Think big!
 
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Scot

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@Real Deal Denver you’ve got one massive chip on your shoulder there buddy.

Your profile says 64, but you’re ranting like a 17 year old.

Chill. Let the grownups talk.
 

minivanman

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What's wrong with bologna sandwiches? .99c thick bologna is my favorite 'meat' to make a sandwich. :smile:

Maybe he didn't like you. He probably knew y'all were needing money and he CHOSE to not help y'all in hopes y'all would split up because he didn't like his daughter being with you.

Throwing money around never helps anything. Now if you was complaining that you asked him for help in making yourself better and making more money, and he would not help you, I guess you could be mad at him but then again.... he has NO responsibility to you to do ANYTHING for you. Unless it's going to benefit ME, I never give anyone any money. No one gave me any money when I was homeless when I was 19 years old. I knew if I wanted to have better things, I better make a plan; so I did. If someone would have given me money to cover my bills, I probably wouldn't have ever made it to where I am today. If someone tells me they have no money and they are hungry, I'd take them with me to eat and discuss how we can go in to business together.... but I ain't giving anyone any money. Oh wait.... I did do this for a guy named Phillip. He was homeless, living at the shelter in downtown Fort Worth. Turns out, Phillip has now owned his own cleaning business for 8 years. Him and his wife (He met her because of me. I rented him a hotel room once I had him started in the cleaning business) have bought a house and still have their cleaning business. But just think, if I'd have given him $10,000, he would have spent it 8 years ago and probably still be on the streets today.
 
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biophase

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To the OP, if it’s $3k and your brother is going well and offered, I see no problem with it.

In any case, you need to discuss with him what happens if you can’t pay him back.
 

Kak

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There are plenty of parents that find their kid’s businesses. Nothing wrong with that. Most people think if they got $50k to start a business that they would be successful. So they blame it on lack of capital. But it’s really all about skills. Just look at shark tank and the number of people who sunk hundreds of thousands into failing businesses.

Of course! I wasn't suggesting not funding a kid's good business idea... Or helping them make a bad idea better.

I was referring to RDD and his girlfriend's entitlement issue.
 

biophase

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I was referring to RDD and his girlfriend's entitlement issue.

Yes I was speaking in general terms. RDD has many issues other than money.
 
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