Bouncing off some ideas

Okay,

This isn't technically an investing strategy, but rather I'm looking for some ideas of what other people would do in this situation. I have an idea of what I'd like to do, but when you have a forum full of investors and investing professionals, you'd be silly not to use that to your advantage!

Okay, so I have loaned some money from my dad, which he has indicated he would like paid back in quaterly installments over th enext 12 months. That's not an issue - I can do easily.

However, what I would like to do is instead of paying him back every three months, I would prefer to hold on to the money, invest it (in Navra with margin loan) and pay the entire amount back as a lump sum at the end of twelve months. That way I have the money 'working' for me over that time. Assuming he agrees to this situation of course.

So what are people's thoughts? If it was you, what would you do if you were to do something different? I'm not so much looking for 'yes, that's a good idea' posts, but more 'If it was me, I would do....' sort of thing.

Mark

Does your dad have any concerns that you won't pay the money back ? If I was him, and I did have concerns, I might prefer to have it paid back in installments. If he's not concerned then it's not an issue.

Are you paying him interest ? If not, then he might prefer to have the money back earlier, since he can then make use of it. If you are paying interest, then it wouldn't be such an issue.

Does he know what you intend to do with the money ? Perhaps you can agree to split some of the profits with him ?

Just some thoughts.

Going into any fund, Navra or not, with leveraging, you need to remember that you could come out with less money than you started with if you have a fixed exit date.

The global economy crystal ball is a bit murky at the moment with oil shooting up, Katrina's effect still unclear, the war in Iraq still draining funds from the super power and most western countries coming to the end of a property boom. Anything can happen. I'm not saying don't invest, but make sure you take into account what the worst case scenario is.

If you have sufficient reserves to still pay the loan back if the investement has negative gain, then I don't see an issue. Money issues between family members can leave very ugly and long lasting problems.

Thanks for the heads up Gonzo. I am aware of the implications of leveraging - I work in financial planning. The loan will definitely be paid out within the 12 months - even if it means taking out a another loan from elsewhere to re-pay it. We had a gentlemen's agreement and there are two things I won't break for anyone - my balls and my word.

Mark