Well. it's not completely flighty. He's got a bad case of burnout at his old job, and has been energized by this new undertaking. Starting a new company would be a way of keeping that new energy but dumping the horrible business partners. The rewards are potentially quite good, but the short-term financial risk is big.
Initial funding would come from H and his partner. H thought he could borrow from his 401K - I pointed out to him that he doesn't have a 401K but a Keogh, and I believe the rules are different - not sure you can loan yourself money from a Keogh. That would leave borrowing against the house, or selling the house and trading down, or selling the vacation lot in Mexico.
If it were up to me, I'd sell the Mexico lot, as that would be least disruptive to the family and would also eliminate a monthly payment we're making on that. That's his dream lot, though - not sure he's willing to give it up for his dream business!!! Plus, selling it would be complicated, not an immediate source of cash. I guess I could look at it as something that could be sold in the future to pay off any loans against the house, etc.
Guess I'd better get back to work drumming up business for my office, eh? The sooner I get in the black the better.
