Need To Get £100,000.00

keeperbear · 23 March 2007 at 7:41PM

MORE_MONEY_MORE_PROBLEMS wrote: »

my idiot of a brother borrowed £50,000 six months ago, from lets say 'not so nice guys in the midlands' now they want it back with interest of £50,000 to make a total of £100k.

What they dont know is that he used that money towards opening a restaurant which is doing really well now (total build cost £400k), i have been offered a 25% share for £100k and save his knee caps at the same time. Looking at the 'books' i will be making £3000 a month from my share capital and as the business does better so will I.

I live in london in a house worth £800k and i have a £400k mortgage on it, i own 10 other properties in central London but i am tied in with 2 year redemtion penalties on them and my wife will not let me re-mortgage our home for such a venture.

if everything comes through the loans will cost me no more than £1500 a month, while the very same loans will be making me back £3000 a month thats a 50% return, now thats good business, for a few online applications.

This sounds a very tall story. If you brother's restaurant is so profitable, why didn't he borrow the original £50,000 from the bank? If the bank refused, why didn't you try to borrow the £50,000 or sell one of your ten properties to invest in his extremely profitable business? In addition, how big is this restaurant if it enables you to withdraw £36,000 per annum from your 25% equity stake? You suggest that a 100k investment will yield £36,000 per year. This implies that a 400k restaurant is generating profit of around £144,000 per year. Sorry to question your story, but a normal bank would lend the majority of the 400k needed for a project which generated a postive annual cashflow of approximately 144k. Finally, if the build cost of the restaurant was 400k who is funding the working capital needed to actually run the business?

MORE_MONEY_MORE_PROBLEMS · 23 March 2007 at 7:46PM

keeperbear wrote: »

This sounds a very tall story. If you brother's restaurant is so profitable, why didn't he borrow the original £50,000 from the bank? If the bank refused, why didn't you try to borrow the £50,000 and invest it in his business? How big is this restaurant if it enables you to withdraw £36,000 per annum from your 25% equity stake? This implies that a 400k restaurant is generating positive cashflow of around £144,000 per year. Sorry to question your story, but a normal bank would lend the majority of the 400k needed for a project which generated a postive annual cashflow of approximately 144k.

because he is a !!!!!!!!!!!!! but family.

bikerqueen · 23 March 2007 at 9:10PM

how can you have no financial commitments on when your mortgage alone is 400k?

doitmyself · 23 March 2007 at 9:21PM

bikerqueen wrote: »

how can you have no financial commitments on when your mortgage alone is 400k?

Exactly. And it doesn't cost anywhere near £1500 pm to borrow £100k (or shouldn't do, and someone owning 10 properties would know that). This is all too stupid for words. Sorry.

silvercar · 23 March 2007 at 9:31PM

You asked for the reason the guy needs 100k, you get one.....and then you rip it to pieces.

If he'd have said he needs to pay for expensive medical treatment not aviable in the UK, would you have been happy?

Does it matter what the money is for?

doitmyself · 23 March 2007 at 9:40PM

silvercar wrote: »

You asked for the reason the guy needs 100k, you get one.....and then you rip it to pieces.

If he'd have said he needs to pay for expensive medical treatment not aviable in the UK, would you have been happy?

Does it matter what the money is for?

Well if you read post #11 you'll see that the OP could have saved himself £50k by talking to his bro just 6 months ago instead of going on a chat forum 6 months later and asking for advice, - despite his considerable salary and substantial proprty portfolio - as to how to raise £100k from a hotch-potch of different credit providers. Like I said, too stupid for words.

meclive · 23 March 2007 at 9:50PM

Lets hope this person isnt doing Identity theft and borrowing around £100k in different loans!

Joking aside, if you wanted 100k for a business venture the bank would lend you the money taking into account how much you earn and the profit you would be making from the venture.

JoeK_3 · 23 March 2007 at 9:58PM

MORE MONEY MORE PROBLEMS, are you prepared to use your other properties as security?

JoeK

doitmyself · 23 March 2007 at 10:01PM

JoeK wrote: »

MORE MONEY MORE PROBLEMS, are you prepared to use your other properties as security?

JoeK

Maybe. Not sure about the wife. She seems to be the brains of the outfit

Labman_2 · 23 March 2007 at 10:02PM

I smell Troll

Need To Get £100,000.00

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