| Q: My youngest son wants to borrow $5,000
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| | called you up just to ask how you're
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| to start his own business. My wife is
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| | doing? Has your mortgage company ever
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| afraid to tell him no. She thinks we
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| | named a kid after you? Probably not.The
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| should just give him the money and not
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| | same rule applies with investing in a
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| expect anything in return. I disagree. He
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| | relative's business. I have raised money
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| doesn't have a very good track record
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| | for several business ventures and not
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| with money, so I'm a little worried that
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| | once did I ever think about asking my
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| my investment will be lost. Should I loan
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| | relatives to chip in. The last thing I'd
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| him the money and hope for the best or
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| | ever want to do is lose my mother's yard
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| just tell him no and hope he doesn't get
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| | sale money. I'd never hear the end of
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| too upset?A: The first thing you need to
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| | it!An investment is made with the
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| do, Jeff, is determine if this money
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| | understanding that your money is totally
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| would be offered to your son in the form
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| | at risk with no guarantee of return. Even
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| of a gift, loan or investment. The very
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| | under the best of conditions an
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| wording of your question tells me that
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| | investment in any business is a gamble.
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| you have not yet made that all-important
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| | You are betting your money that the
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| distinction.It sounds like your wife
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| | business will be successful and that you
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| wants to make a gift of the money,
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| | will get a payback at some point in the
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| expecting nothing in return but the
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| | future.Hug your money real tight before
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| undying love of her last born son.You, on
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| | making the investment, because if the
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| the other hand, don't know if you should
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| | business doesn't make it, you will never
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| offer the money as a loan (should I loan
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| | see your money again.You and your wife
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| him the money) or as an investment
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| | also seem very worried about making your
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| (worried that my investment will be
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| | son mad, which raises another huge red
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| lost).Until you can make that
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| | flag for me. If your son isn't mature
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| distinction, your money should remain in
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| | enough to take the word "no" without
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| the bank.I have a very simple rule when
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| | getting upset, he's certainly not mature
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| it comes to loaning money to relatives:
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| | enough to start and run a business.
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| NEVER, EVER loan money to anyone you
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| | Unless that business is a bicycle paper
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| might have to sit next to at Thanksgiving
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| | route, and even then I wouldn't put my
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| dinner."Son, pass me that dressing and
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| | money on his chances of success.The
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| tell everybody the story of how you blew
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| | bottom line is this: if you can afford to
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| your old dad's retirement money..."A loan
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| | give your son the money and can do so
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| from a relative is no different than a
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| | without attaching strings to it, then by
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| loan from a bank. You, Mr. Banker, are
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| | all means give him the money and wish him
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| giving your son, Mr. Borrower, the use of
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| | well. Encourage his entrepreneurial
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| your money for a specific period of time
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| | spirit and support him as a parent
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| and you fully expect the loan to be paid
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| | should.Do not, however, expect anything
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| back under specific terms, even if his
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| | in return and never bring up the money
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| business goes south. Sure, you will
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| | again, especially if he's the one carving
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| probably be a little more forgiving than
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| | the turkey on Thanksgiving Day.Here's to
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| a bank when the loan goes unpaid, but the
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| | your success!Tim KnoxSmall Business Q&A
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| damage to your personal relationship
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| | is written by veteran entrepreneur and
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| could be extreme and hard to repair.In
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| | syndicated columnist, Tim Knox. Tim
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| the most basic of terms if you loan your
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| | serves as the president and CEO of three
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| son the money you become the creditor and
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| | successful technology companies and is
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| he becomes the debtor. Have you ever
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| | the founder of DropshipWholesale.net, an
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| heard of a creditor and debtor having a
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| | online organization dedicated to the
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| very good relationship? Has Visa ever
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| | success of online and eBay entrepreneurs.
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