scared of investing in the business of a relative

Philippines
February 25, 2010 8:45pm CST
hi there, lastnight, i spoke with my aunt and they persuaded me to invest in their business. it has good return and i can really see her getting rich from it. but i always had qualms in investing, especially since this is a money lending business but mostly because it's a family member's business.i dont want to have any falling apart in the end bec of money. what do you think about this?
2 people like this
4 responses
@paula27661 (15811)
• Australia
27 Feb 10
I would not be inclined to go into business with family members especially if I value the relationship. Business is always a risk but when it involves friends and relatives there is more than money at stake. I guess you know your relative better than anyone and can outweigh the pros and cons. Personally I would keep family out of business deals.
@bnx2212 (712)
• Philippines
26 Feb 10
You know your relative better so you can really tell their motives of letting you join in their business. Actually, as far as I know as a human being, greed would always come especially if they got better chances in money making more than you. So if they let you join their business, it's either your relative is really a good person that has a heart of helping others (which does not usually happen)or they want extra capital to make their business and money grow bigger and bigger. So it's up to you to figure things out. All I could say, If you join, just ask for the transparency of the gross and net of the income to avoid misunderstandings later on. I told you this because we can always hear from everywhere that family was ruined because of money and greed.
• United States
26 Feb 10
i am not so sure if its a good idea to invest in other businesses. you will never know where the money will go. unless it is your very own business ofcourse.
@eazyb18 (19)
• Czech Republic
26 Feb 10
Hi, is he really so succesful? If so and she needs money, why didnĀ“t she asked for loan in the bank? What is the percentage of the required money you should lend and your 12-months income? If it is more than 30 percent and I have such concerns, I would not invest. It is one of tough decisions if it concerns money and family. It is appropriate if you ask for some time to think about it.