Business School is hosted by Sharran Srivatsaa, President of Real (TSX: REAX) (NASDAQ: REAX), the fastest-growing, publicly-traded, real estate brokerage in the world. Sharran grew Teles Properties by 10x in 5 years to $3.4 Billion in sales and eventually sold the business to Douglas Elliman. Sharran is also an accomplished “deal guy” and private equity investor. He is the Chairman of private equity firm Highland Prime which focuses on investing in service-businesses and also the Chairman of ARC Multifamily Group which focuses on value-add multifamily investment projects. Sharran is a former Goldman Sachs and Credit Suisse banker and a sought after keynote speaker and is the creator of the wildly-popular 5am Club call for Entrepreneurs. On this podcast, Sharran shares his best secrets on how to grow your business strategically, how to build your brand elegantly, most importantly integrate the profits in your business with an overall joyful life. For more free resources visit Sharran.com
https://www.sharran.com/podcast/
episode 80: Loaning Money to Friends
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Let's talk about money and friends. Should you lend money to friends? What if we flip the situation, and you're the one in need. Would you borrow money from friends? It is a tricky situation. There's no absolute rule saying whether you should or shouldn't. But let’s admit it, friendships have been broken because of unpaid debts. In this week's episode, Sharran shares his experience being on both sides of the situation and the framework he uses to consider whether to lend money to someone.
At one point in your life, you may be in this situation. So it's best to create your rules to help you decide. Also, you need to consider which is more important -- the relationship or the money?
Do you want to know the personal finance secrets of the most successful entrepreneurs? Get the Money Multiplier System - moneymultiplier.info.
“It is a mutual agreement to help each other have a better life together.”
- Sharran Srivatsaa
Timestamps:
00:00 Three questions you should ask before loaning money to friends
00:58 At one point in your life, this will happen to you
01:50 A positive experience for Sharran
03:37 How does it feel to lose $13K and a friend?
04:26 Three things that can happen when you lend money to a friend
04:54 Is the relationship more important than the money?
05:24 Sharran's 80/20 rule for loaning money (and the single most important factor)
06:56 Time to create your own rules
08:14 The “four goods” to help you decide if it’s a good idea to lend money
12:40 Why you should write a loan agreement like you're dealing with a stranger
13:24 How do you keep the relationship no matter what happens?
17:20 A small investment with a large result
Resources:
- Get the Money Multiplier System
- Grab Sharran’s 4-Week MBA for Free
Connect with Sharran:
- Website