This Cost More Than Money

4 Thoughts

1. Trust and documentation can exist together.
   Putting an agreement in writing doesn't automatically mean you don't trust the person.

2. Friendship can make you overlook things you'd question in any other deal.
   History has a way of making people lower their guard.

3. The downside isn't only financial.
   A bad loan can put both your money and the relationship at risk.

4. Outside perspective matters.
   Someone without an emotional connection to the deal may see something you're missing.

4 Lessons

1. Don't lend money you can't afford to lose.
   Especially when the relationship matters to you.

2. Put the agreement in writing.
   Be clear about the amount, terms and what happens if the agreement isn't followed.

3. Don't avoid uncomfortable questions.
   If basic business questions create a problem before the money changes hands, pay attention.

4. Separate the person from the deal.
   You can care about somebody and still evaluate the opportunity like a business decision.

4 Challenges

1. Think about how you'd evaluate the deal if a stranger brought it to you.
   Would you still say yes?

2. Write down the questions you're uncomfortable asking.
   Those might be the questions you need answered most.

3. Get another set of eyes on the deal before sending money.
   Let someone without the emotional attachment challenge your thinking.

4. Go back to the original email and hit reply.
   Tell me if you've ever had to learn this lesson the hard way too.

Quote of the Week

"Good fences make good neighbors." - Robert Frost

Business and friendship can absolutely exist in the same room.

But trust isn't a substitute for clarity.

Get the terms clear.

Put them in writing.

And don't let being uncomfortable for five minutes turn into a problem that follows you for years.