Episode 80

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Published on:

7th Dec 2021

Loaning Money to Friends

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Let's talk about money and friends. Should you lend money to friends? What if we flip the situation, and you're the one in need. Would you borrow money from friends? It is a tricky situation. There's no absolute rule saying whether you should or shouldn't. But let’s admit it, friendships have been broken because of unpaid debts. In this week's episode, Sharran shares his experience being on both sides of the situation and the framework he uses to consider whether to lend money to someone. 

At one point in your life, you may be in this situation. So it's best to create your rules to help you decide. Also, you need to consider which is more important -- the relationship or the money? 

Do you want to know the personal finance secrets of the most successful entrepreneurs? Get the Money Multiplier System - moneymultiplier.info.

 “It is a mutual agreement to help each other have a better life together.”

- Sharran Srivatsaa

Timestamps:

00:00 Three questions you should ask before loaning money to friends

00:58 At one point in your life, this will happen to you

01:50 A positive experience for Sharran

03:37 How does it feel to lose $13K and a friend?

04:26 Three things that can happen when you lend money to a friend

04:54 Is the relationship more important than the money?

05:24 Sharran's 80/20 rule for loaning money (and the single most important factor)

06:56 Time to create your own rules 

08:14 The “four goods” to help you decide if it’s a good idea to lend money

12:40 Why you should write a loan agreement like you're dealing with a stranger

13:24 How do you keep the relationship no matter what happens?

17:20 A small investment with a large result

 

Resources:

- Get the Money Multiplier System

- Grab Sharran’s 4-Week MBA for Free

Connect with Sharran:

- Website

- LinkedIn

- Facebook

- Instagram

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About the Podcast

Business School with Sharran Srivatsaa
Business School with Sharran Srivatsaa is the no-fluff, tactical podcast for founders, operators, and underdogs who want to grow with clarity, intention, and results. Hosted by entrepreneur, investor, and operator Sharran Srivatsaa—President and Managing Partner at Acquisition.com—this show cuts through the noise to deliver real-world strategies from someone who's built and exited five companies across multiple industries.

Sharran has helped scale two billion-dollar businesses, served as President of Real (NASDAQ: REAX), and led the 10x growth and sale of Teles Properties to Douglas Elliman (NYSE: DOUG). He brings lessons from Wall Street to Main Street, sharing what actually works—because he’s lived through what doesn’t.

Every episode offers simple, actionable playbooks for those who want to build extraordinary companies without the chaos. Whether you're a scrappy operator, a first-time founder, or a seasoned executive, Business School with Sharran Srivatsaa is your blueprint for building with purpose and winning on your terms.

For more free resources, visit Sharran.com

About your host

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Sharran Srivatsaa

Sharran is a serial entrepreneur, sought after keynote speaker, and a respected thought-leadership resource for publications such as the Wall Street Journal, SUCCESS magazine, Huffington Post and Forbes.

While Sharran has had 5 exits in the last 19 years, and also a several humbling failed investments and business initiatives. He talks all about them on his top rated Spotify podcast, Business School.

Most recently, Sharran led Teles Properties’ unprecedented 10x growth over 5 years and a 4-year consecutive streak on the Inc. 500 fastest growing companies list resulting in its acquisition by national real estate powerhouse Douglas Elliman.

Prior to Teles, Sharran worked at both Goldman Sachs and Credit Suisse, where he collaborated with management teams of fast-growing businesses around the country on investment advisory and corporate strategy. Sharran also spent several years building recreational programs in the Caribbean, Middle East, and Hawaii for some of the finest international resorts such as the Four Seasons and Ritz-Carlton, also has deep experience working with technology companies such as Lightera (acquired by CIENA) and Obopay, a fast-growth mobile payments company.

Sharran is a Principal at Srilo Ventures, a multi-factor private investment fund that focuses investing in and advising technology companies and operating businesses in the consumer space. Having successfully completed many acquisitions, joint-ventures, management buyouts, mergers, and capital raises, Sharran serves as a director and advisor on numerous company boards.

He is also a member of the Genius Network, the highest-level marketing mastermind in the world led by whizkid Joe Polish, and also a member of Young President’s Organization (YPO).

After competing on the professional tennis tour, Sharran received his Bachelor’s degree in Computer Science from Luther College and his MBA with Honors from Vanderbilt University.