Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    

landscaping investment

Reply to topic
Money Talk > Earning & Income

Author Thread
First Time Poster

Cash: $ 0.25

Posts: 1
Joined: 31 Aug 2016
Location: Pennsylvania
landscaping investment  Reply with quote  


I have an opportunity to invest money into a neighbors landscape startup business so that he may purchase some startup equipment (trimmers, mower, trailer, etc.). I am expecting about $2,500 initially. My Question is the payback strategy? I originally figured I could take a percentage of profits that he makes on his customers plus free landscaping work at my house, but how much? and for how long? I was also thinking a straight loan? Anyway, would appreciate any thoughts or shared experiences on how it can be mutually beneficial for both of us, and if possible, how my return can even grow over time.

Post Wed Aug 31, 2016 5:44 pm
 View user's profile Send private message
Senior Member

Cash: $ 751.85

Posts: 3656
Joined: 21 May 2006
Location: arizona
 Reply with quote  

No, don't even think about sharing "profit/earnings" with the neighbor. Defining expenses, earnings, capitalizing new equipment, will be a nightmare. The straight loan is workable - if you think of it as a Venture Loan that you may or may not get back.

Here is the First Rule of Landlording - "never rent to a co-worker, and acquaintance, a friend, and never ever to a relative, you need a formal arm's length agreement with a STRANGER". This rule can also be applied to many things - selecting a realtor (old uncle ned used to sell houses, talk to him), a mechanic (old george can fix anything, don't bother with a dealership), a plumber, and so on.

Your neighbor is at least an acquaintance, maybe a friend - otherwise he would not have hit you up for a loan. So - if you lend him the money, put it in writing, have a formal interest rate, say 12%/yr. And a repayment plan - ie, require that he pay the interest on the first of every month ($25 in the case of a $2500 note.)
Both you and he have good intentions and you both expect this to work. And it will - but never quite the way either of you expect. Put a time limit on the $2500 principal, say 2 yrs, that gives him some slack - and put down some escape rules - what if he moves away, gets a divorce (will his wife pay?).
But don't be involved in the success of the business, just the loan. If he decides to get a W2 job and quit the business, he still owes you $2500 (and $25/m).
Post Wed Aug 31, 2016 6:50 pm
 View user's profile Send private message
New Member

Cash: $ 1.40

Posts: 7
Joined: 02 Sep 2016
Location: Los Angeles
 Reply with quote  

i don't think he'll go for profit sharing so that's a long shot. i'd focus on the payback period and interest you can get for the loan. typical rates are 6-9% for personal loans you can get at the bank. i'd try to go for a higher rate if you can get it. most people aren't going to like it if you make them sign a contract but if you're unsure about getting paid back you might want to just have it in writing in case things get ugly. maybe you can even take something he owns as collateral in case he decides not to pay. it really depends on your relationship with your neighbor.

if you just want to make money lending to others, you can try lending club, you can invest as little as $25 per person and rates are about 5-8%

also, you can check out my YouTube channel for more tips

good luck!
Post Fri Sep 02, 2016 7:50 am
 View user's profile Send private message Visit poster's website
New Poster

Cash: $ 0.60

Posts: 2
Joined: 04 Jan 2017

 Reply with quote  

Properly designed landscaping makes your house show up from the others on the block and can also give you a beautiful decent return on savings
Post Thu Jan 12, 2017 12:45 pm
 View user's profile Send private message
Senior Member

Cash: $ 97.50

Posts: 502
Joined: 27 Feb 2018

 Reply with quote  

Thanks for sharing.

what is a telecom technician? - Fieldengineer
Post Tue May 12, 2020 2:00 pm
 View user's profile Send private message Visit poster's website
Contributing Member

Cash: $ 6.35

Posts: 25
Joined: 27 Jan 2018
Location: New York
 Reply with quote  

Very nice & knowledgeable post all features are defined in a good way for more detail visit bitly.com thanks
Post Tue Jul 21, 2020 6:25 am
 View user's profile Send private message
Senior Member

Cash: $ 41.15

Posts: 233
Joined: 21 May 2018

 Reply with quote  

I am far from economics and I am not going to learn it. I feel good with gambling now. I know a lot about dota 2 professional teams and I get additional information on https://wewatch.gg/blog/ So, it helps me to earn money with betting quite often.
Post Wed Nov 18, 2020 8:59 pm
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      

Money Talk © 2003-2018