%% If 80% or 95% of family loans turn bad/bad experience; well Bill Gates ,MSFT got by 50K loan from dad+ that worked well. But to keep an out of bounds mother in law @ proper distance, ; a loan could be a helpful idea. may never see her again.Any idea why a bank would want a cosign + that also tends to turn out badly?? NOT a predictionEdit;most loans have steel cables attached; what happens [ in writing][with a 20% or 100% loss??
Can someone briefly describe a "typical" structure of a small-mid sized proprietary trading firm? I was thinking, for an account size of $1-2mn funded by a self + a few mates (ie friends&family), which isn't feasible for a more formal fund structure, can't a "prop firm" model be used. Incorporating as a LLC with multiple share classes, A for the manager (myself) and B for a few mates. Ownership rights are proportional for A & B, only A has voting rights, P&L rights are uneven such that A is entitled to more than ownership% (when gain, even if loss) and B is less than ownership% (say ownership% x 0.8). I see whether required for license/registration or not depends on the presence of performance fee, which if paid results in asset management service. But if share classes structured appropriately in an investment-purpose LLC, uneven profit distribution rights can lead to de facto 'performance fee'. I was wondering why can't it work (of course assuming investors accept such arrangement/governance). I assume "prop firms" have various layers of partners of differing rights, where founding partners can get a bigger pie than some silent partners (ie investors). Can anyone shed some light here.
Nice parents you had. $30K in 1985 is a decent chunk of change. My dad charged me rent equalling 100% of my take home pay of two part time jobs at 17 which made it impossible to save for school. Moved out permanently at 18. Here's to hoping my kids speak as kindly of their parents as you did of yours.
You should thank your dad for pushing you out of the comfortable nest and be independent. Imagine yourself as a 40 something still sleeping in the same room you had as a high school kid, asking for lunch money?