Dh wants to mortgage our house for a business deal

amother

Lime

Tue, Sep 20 2016, 12:21 am

My husband has a great business mind and has started many businesses most of which have been not successful. Some of them have been successful which is how we are still living comfortably now .If we would have mortgaged our home we would be homeless right now.

5*Mom

Tue, Sep 20 2016, 2:53 am

WhatFor wrote:

Basic investment principle: Never invest more than you can afford to lose.

THIS. Ask yourself what will happen if the business venture fails. Will you still be ok? Will you have a place to live and enough money for your living expenses? "But it won't fail" and "It's a sure thing" and "Yanky made a killing in this same investment so we will too" and "You have to take a risk to make money" are NOT valid answers to these questions. They're a red flag.

amother

Seafoam

Tue, Sep 20 2016, 9:17 am

Just spoke to Dh. I told him I'm not comfortable using the mortgage. He got really upset and angry and said he is going to loose his job very soon and we won't be able to pay the mortgage if we don't use the money to start the business. He said he needs to pay bills and I live at fantasy land and he practically hang up the phone on me and said he need to work now.

MiracleMama

Tue, Sep 20 2016, 9:37 am

While I think it's true that people who succeed are most often those willing to take big risks, and while I think it's important to believe in yourself and your business venture and be optimistic, I think it is also important to take a real look at the worst case scenario and determine how you would survive it. Sticking your head in the sand and thinking you're somehow immune from this possibility is immaturity.
Only if you both are in agreement that the business venture is a very sound one with a good chance of success but also both prepared to live with the fallout if things go wrong can you move forward with risking your family's home.

STMommy

Tue, Sep 20 2016, 10:03 am

OP, I'm sorry your husband reacted that way. It sounds like he's feeling extremely stressed and pressured right now. Without a clear head for sound decision making, he does not sound like he's in any shape right now to take the risk he's proposing. Later, when he's home and calmer, perhaps you can suggest to him that you both see a neutral financial advisor, who can help you both figure out the best way for him to start a new business.

amother

Seafoam

Tue, Sep 20 2016, 10:54 am

Thanks for the advice. I called his rabbi. So I'm going to wait and see what happens. He might refer us to a financial advisor.

MrsDash

Tue, Sep 20 2016, 11:26 am

amother wrote:

Opening a business with money you don't have is not the solution here. If he loses his job, he should step up and get any job that he can to help support the family. Pride is overrated. My father has a phd in physics yet when we moved back to the US from Israel, we had nothing, so my father did the admirable thing, and got a job at the local grocery store as a bagger until he found a more permanent job in the government.

amother

Lilac

Tue, Sep 20 2016, 11:59 am

We lost our first house by my husband doing that. He has gone bankrupt 3x. Finally, over the last 12 years, following Dave Ramsey's advice (Google it), we have become solvent, and very profitable. Now, B"H, we are very capitalized, but we didn't have to use our house to do it. It was by living debt free and it took a long time. NO..to using the house. Stay firm. Your husband is desperate, but he'll be more desperate if you lose the house!

causemommysaid

Tue, Sep 20 2016, 12:45 pm

amother wrote:

as long as ur name is on the house he cant do it. stay strong and do not give in. I cant think of a worse idea.

amother

Seafoam

Tue, Sep 20 2016, 2:09 pm

amother wrote:

How much does he want to borrow??? 10k? 25k? 250k? 500k? It makes a difference!

About 100k yo 200k

SRS

Thu, Sep 22 2016, 2:58 pm

amother wrote:

Editing because I see he wants 100K to start. What type of business is this?