How to properly lend money to friends with a contract?

Question by WM_300ZX: How to properly lend money to friends with a contract?
Some friends of the family have asked me to loan them money. I want to do this the proper way, with a contract. I think I read something about getting it notarized at a bank? Does anyone know where to get sample contracts where I can just fill in the blanks? Or a general structure for them. Anything else I should know? thanks…

Best answer:

Answer by The CPA Guy
My advice would be not to do it, even with a contract. Money has probably ruined more friendships than every other factor combined. Tell them that if they need a loan, they should contact their bank. Or if they desperately need the money for things that are absolutely necessary like food or shelter, allow them to work for it by doing work around your house.

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