When You Should And Shouldn’t Lend Money To Your Partner

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For investment, with collateral: Do

If you’re in a serious relationship, some investment opportunities may come your way that your partner cannot afford on his own. If he could, for example, loan someone money for their home mortgage and get a 12 percent interest rate (a deal that came across my desk recently), that’s a great investment. Why? Because if the borrower defaults on payments, the lender gets their home. It’s basically a win-win. If your partner has a chance like this but needs help making up the principal, maybe you should participate.

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