|
|
|
6 Reasons for investing in Florida Investment Property
6 REASONS for investing Florida Real Estate Investment Property NOW I invite you to take the next few minutes to learn the truth about the real estate market, how it compares to other methods of building assets and why it is such a lucrative form...
A Brief Look at Tax Deed Investing
Currently around half of the states offer tax lien certificates
and the rest offer something called tax deeds or a combination
of both tax liens and tax deeds.
In a tax deed state, you do not buy the lien, you are bidding on
the actual...
A Guide To Investing
Everyone seems to have their own secret or strategy or trick to making money in the stock market. Here are two strategies that have helped many people.
1. It's your time, how do you want to spend it?
Some people suggest high risk investments...
DXInOne E-Currency Exchange: Hidden Profitable Investing Opportunities
Very few oportunities online have the privilege of claiming they
can guarantee to make a profit for you. It's probably hard to
believe at first, but once you grasp how the e-currency exchange
system actually works you can see that it's not out of...
Investing online - Day traders and others
With the inception of the Internet, many people experienced and inexperienced in stock trading have begun signing up with online trading companies and buying and trading their own stocks. Investing online in this manner is growing in popularity,...
|
|
| |
|
|
|
|
|
|
Small Business Q & A: Investing In Son's Business Could Cause A Real Family Feud
Q: My youngest son wants to borrow $5,000 to start his own
business. My wife is afraid to tell him no. She thinks we should
just give him the money and not expect anything in return. I
disagree. He doesn't have a very good track record with money,
so I'm a little worried that my investment will be lost. Should
I loan him the money and hope for the best or just tell him no
and hope he doesn't get too upset?
A: The first thing you need to do, Jeff, is determine if this money
would be offered to your son in the form of a gift, loan or investment.
The very wording of your question tells me that you have not yet
made that all-important distinction.
It sounds like your wife wants to make a gift of the money, expecting
nothing in return but the undying love of her last born son.
You, on the other hand, don't know if you should offer the money
as a loan (should I loan him the money) or as an investment (worried
that my investment will be lost).
Until you can make that distinction, your money should remain in
the bank.
I have a very simple rule when it comes to loaning money to relatives:
NEVER, EVER loan money to anyone you might have to sit next to
at Thanksgiving dinner.
"Son, pass me that dressing and tell everybody the story of how
you blew your old dad's retirement money..."
A loan from a relative is no different than a loan from a bank.
You, Mr. Banker, are giving your son, Mr. Borrower, the use of
your money for a specific period of time and you fully expect the
loan to be paid back under specific terms, even if his business
goes south. Sure, you will probably be a little more forgiving
than a bank when the loan goes unpaid, but the damage to your personal
relationship could be extreme and hard to repair.
In the most basic of terms if you loan your son the money you become
the creditor and he becomes the debtor. Have you ever heard of a
creditor and debtor having a very good relationship? Has Visa ever
called you up just to ask how you're doing? Has your mortgage
company ever named a kid after you? Probably not.
The same
Associated Websites
rule applies with investing in a relative's business.
I have raised money for several business ventures and not once did
I ever think about asking my relatives to chip in. The last thing
I'd ever want to do is lose my mother's yard sale money. I'd never
hear the end of it!
An investment is made with the understanding that your money is
totally at risk with no guarantee of return. Even under the best
of conditions an investment in any business is a gamble. You are
betting your money that the business will be successful and that
you will get a payback at some point in the future.
Hug your money real tight before making the investment, because if
the business doesn't make it, you will never see your money again.
You and your wife also seem very worried about making your son mad,
which raises another huge red flag for me. If your son isn't mature
enough to take the word "no" without getting upset, he's certainly
not mature enough to start and run a business. Unless that business
is a bicycle paper route, and even then I wouldn't put my money on
his chances of success.
The bottom line is this: if you can afford to give your son the
money and can do so without attaching strings to it, then by all
means give him the money and wish him well. Encourage his
entrepreneurial spirit and support him as a parent should.
Do not, however, expect anything in return and never bring up the
money again, especially if he's the one carving the turkey on
Thanksgiving Day.
Here's to your success!
Tim Knox
tim@dropshipwholesale.net
For information on starting your own online or eBay business,
visit http://www.dropshipwholesale.net
ABOUT THE AUTHOR
Tim Knox as the president and CEO of two successful technology
companies: B2Secure Inc., a Web-based hiring management software
company; and Digital Graphiti Inc., a software development company.
Tim is also the founder of dropshipwholesale.net, an ebusiness
dedicated to the success of online entrepreneurs.
http://www.dropshipwholesale.net
http://www.smallbusinessqa.com
|
|
|
|
|
|