I'm making an LLC and registering it with the SEC as a Broker/Dealer to buy the student loan debts of my friends from the companies that currently hold them. I know they can be bought for a fraction of the total value and then I can just sit on my ass, declare the money spent as a loss and deduct it from my taxes. Anyone see a problem with this?
>>1242082
What makes you think they can be bought "for a fraction" of the total value, dipshit?
And are you going to go to court 10 years from now when your friends don't pay you?
Fucking idiot
>>1242086
Because student debt is frequently bought for pennies on the dollar. And my friends would pay me the cost of buying their debt then we'd call it even. No court needed, no repayment of the loan needed. I'd own the debt and I'd decide I don't need it repaid. http://www.npr.org/sections/ed/2014/09/17/348036877/these-people-can-make-student-loans-disappear
>>1242086
Also there's no need to be so salty, if you have student debt, I'd gladly work the same thing out with you. There's no need for debt buying/absolving tricks to only benefit my friends.
You aren't making a compelling argument against the idea, I've dont plenty of research on the subject and I see no flaws with it, not to mention the fact that I'm not the first person to do this. is this /biz/ or /salt/ cuz damn, yo, you know that in itself was a reply, just a useless one. I can bounce elsewhere if you guys don't have any useful info.
>>1242100
I'll come back tomorrow to see if anyone knows of any particular flaws with this plan. In the mean time, have a goodnight everyone.
>>1242109
No need to wait until tomorrow dumbass. The flaw in your plan is that no bank will sell you the cheryypicked loans of your friends. They'll sell you a bundled set of thousands of loans denominated that will cost you millions of dollars. Anything less than that is uneconomical for them.
Since you don't have millions of dollars, or the ability to service thousands of loans, get rekt scrub.
>>1242251
Buying them in bulk isn't a problem for me. Thank you for confirming /biz/ as the absolute saltiest board. Is everyone here just jailed small business owners with a double mortgage and a wife they hate but can't leave because they already have two kids?
*failed small business owners
>>1242757
no wives on /biz/. they are just a financial drain and will end up taking half your assets at some point.
>>1242082
>I'm making an LLC and registering it with the SEC as a Broker/Dealer
...do you have any idea how much this costs and how much regulatory approval it requires, and how much legal/compliance paperwork?
ill give you a hint: a lot
Ignoring prohibitive startup costs, the OP was asking if there is a downfall to the plan or some reason it wouldn't work. The answer is no, this is perfectly possible and legal. Difficult, expensive, but possible. /biz/ is full of idiots who hate on all ideas presented.
>>1242082
Student loans can't be settled anon....
It's time to put down that meth pipe.
>>1243544
>Ignoring prohibitive startup costs
>Ignoring capital requirements
>Ignoring legal impediments
>Ignoring practical impossibilities
>Ignoring regulatory prohibitions
>Ignoring transaction costs
this is a great idea. Just like I see everyday on /biz/.
