Put another way, he's leveraging other people's money to make cash flow for himself. Sounds pretty smart to me.
I work for a financial institution and I can tell you this almost never goes well friend. Plus like others said if he commits any driving violations or runs a toll without paying that is all on you. I would do like others have said and help him finance the car as a cosigner, and then later he can refinance the car to be on it by himself.
If someone is willing to let you take risks on their money instead of your own, wouldn't you do it too? As long as you've got the income to justify the risk, there's nothing wrong with debt. The most successful people in this country built their wealth off other people's money.
Pay him to trash it and report it stolen. You'll be done with it and he will have some cash for a car. Make sure you get gap coverage before doing this
To answer your question, not that much money I Personally would not. But obviously lots of people do just that. Not what I was asking, though, I appreciate your input.
Makes sense. Curious if you have a threshold where you wouldn't go above a certain point of indebtedness. Most ppl I know with a lot of debt also have a lot of stress and live to think about their money. Not very mentally healthy if u ask me, but I guess that's all they know. If u can manage it and still be happy then that's awrsome.
There are so many factors. Let's say I was willing to let you borrow $10 million at just .5%. Now, that's a ton of money you say but you also know that you can easily invest that and get a better return. Heck, even a CD would probably get you more. So of course you would do that, right? Rez is a dentist. Of course his risk is higher than my example above but he knows his occupation is in demand. He also knows that not every dentist wants to open their own office and work for themselves. So if he can open a couple offices of his own and hire dentists to work for him, he'll make bank. Especially if he's doing cosmetic work like crowns, etc, that is cash only. Thus he knows the more loans he has, the more offices he has, the more money he makes (of course with more headache of managing everything).
No threshold for me, for the simple reason that the more I borrow, the more I make (I would hope). Yonkers stated it pretty well and he's accurate with his post. My biggest issue right now is that I can't borrow enough from the bank for a 3rd office. I will jump on it as soon as that opportunity arises. Dental offices do well enough where the bank loan isn't an issue. For example, my newest office is about 14 months old...still relatively new, but it's production is ~50k per month with an overhead of about 28k. My bank note is about 3,000, which I'd happily pay, since it allows the office to profit 20k a month. Therefore, there is very little stress associated with the debt...any stress that is present is based around management, staff issues, patient issues, etc... I hardly ever think about debt bc it never interferes with my day to day life. The bank has told me that once this office gets to 100k production per month, then I'll be eligible for another loan in the 500k range. It'll be a no brainer for me unless i decide that I don't want to manage another office...the debt part really isn't an issue for me, or even a factor I consider.
No. As stated in thread, I now have a company truck I use as if it were my own. That is why I no longer need the other truck.
20K Wow! You guys will be tied at the hip for a little while you looking at a situation where this is 2~5 yrs of hoping for the best You know your friend better than any of us . . .. .so you are best informed to make the decison Rocket River
