Helping a fellow DJ in need.....

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Helping a fellow DJ in need.....

Postby djmc » Tue Mar 14, 2006 2:36 pm

A local DJ friend of mine came into some difficult times, and he sold his equipment to another DJ friend, who passed away a week later. Fortunately he kept all his music, over 1000 CDs.

Now I've got some gigs for him this summer, and he tells me he's got a few potential gigs of his own coming up starting next month.

When I mentioned my basement full of (passive) equipment, all in excellent condtion, he made a proposal that I do an installment purchase for a $2k system, with all of the basics (mixer, amps, speakers, CD player, etc).

I've put together an excellent system--with 18" subwoofers-- for about $1,650. He will need to buy a wireless microphone system.

The DJ friend is proposing to pay installments of $200 per gig, starting in April, until paid in full. This includes the ones he books on his own. I already have one in June that has paid the $200 retainer, which I keep in addition to the $200 he will pay me out of his balance. That will cover the 2nd payment. He says that he can probably pay me off in 8 months or sooner if he gets more than 1 event per month.

How should I structure this contract.....

My wife says to extract a $200 down payment, his Social Security number, California Drivers Licence number, and let him know she works for a major financial institution and will make sure his Equifax/TRW/Experian credit reports are fully trashed if he doesn't pay.

My instinct is to trust the guy, because I've got a sixth sense about these things. I've been propositioned like this before, but always avoided getting burned because I can sniff out a flake.

This guy is an EXCELLENT DJ (I've been told this by other DJs who have used him).....has a stellar reputation in the Bay Area (where he originated).

His "regular job" is as a waiter at Ruth's Chris Steak House, one of the top two steak house chains in the US. You have to go thru a major wringer to get a job with them (think "Ritz-Carlton"...). If he had a bad FICO credit score, Ruth's Chris would not have hired him last year. He's been with them since they opened 10 months ago, works 4 nites a week and averages $40 per table (6-8 tables per evening).

Should I be a trusting soul and help a fellow DJ in need.....OR should I follow my wife's advice and be a stingy bast@*d, make him give me his first born as collateral? (LOL)
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Postby Dave Miller » Tue Mar 14, 2006 2:58 pm

If he's really trustworthy, and your gut says he's OK, then I'd do a very informal agreement with a tally of what has been paid.

If you want, tell him what your wife said, but laugh it off s it's not a threat.
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Postby djdonny » Tue Mar 14, 2006 3:24 pm

I would recommend a formal loan contract of $2K. He has to expect you to treat this deal legally, professionally, and wisely.
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Postby dokai » Tue Mar 14, 2006 4:07 pm

What -I- would do? Let him pay me over time with just a handshake after copying down the model and serial numbers. But I'm too trusting.

What's the SMART thing to do? Write it up in a contract, complete with the model numbers and serial numbers, along with a monthly minimum and a "paid in full by" date, etc. And you keep custody of the gear until it's paid off, that way you know when he's working a gig or not. None of that "Well, if I don't tell DJMC that I'm working a gig tonight, I don't have to pay him an installment out of it." If he has to come to you for the gear, then you KNOW when he's working.
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Postby djmc » Tue Mar 14, 2006 4:12 pm

thanks guys......I'll take your advice! (especially the part about a legal contract.....I may even need to do a UCC-1 filing to protect my interest).

I'm delivering the equipment to his house, will set up everything right in front of him. I guess it comes down to how I feel once I visit their domicile, see how they live.
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Get it in writing

Postby goodknightdj » Tue Mar 14, 2006 5:01 pm

Trust him or not, do a contract.

A "friend" of mine that I trusted was buying a pair of CDJ 1000 MKIIs from me. He offered $450 each in installments. Then, he "hit hard times" and started putting me off.

A few nights ago a few friends of mine and I walked into the bar where he was playing and repoed the CD players. Yes, the music stopped. Harsh, but he had been warned more than once that it was coming to that.
He isn't DJing anymore.
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Re: Helping a fellow DJ in need.....

Postby jwg » Tue Mar 14, 2006 10:36 pm

How bad of a financial state is he in? Bad credit rating? Why couldn't he just go to his bank, sign up for an installment loan and and have the bank cut you a check for $2000.00?
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Re: Helping a fellow DJ in need.....

Postby djmc » Wed Mar 15, 2006 12:10 pm

jwg wrote:How bad of a financial state is he in? Bad credit rating? Why couldn't he just go to his bank, sign up for an installment loan and and have the bank cut you a check for $2000.00?


He's got a family, with children........it could be a medical thing.......kid needed to go to hospital for an illness.....that could be why their CC is maxxed out??? I'll try to dig deeper for an explanation.
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Re: Helping a fellow DJ in need.....

Postby crazyd » Sun Mar 19, 2006 12:34 pm

mmm lets see, anybody who runs into trouble of any sorts, be it financial or something else, always says NOT RESPONSIBLE

in the day when i still believed that there was such a thing as a work ethic like my own, you know having honour and integrity, i did try the multi system route

the person i had working for me was a fantastic DJ, and still is
but unresponsible.

at the time 25, always had his mother to bail him out of all his situations he got into.

his lack of responsibility started at a ride, so i bought him a truck (for my benefit) to get to and from gigs, and carry equipment
he wanted his own music, which i natually insisted on, and bought him a box set
lastly, since i believe, your mixer/head unit is your instrument, and should be personalized to your likes and needs. Becouse we at crazy d's only do things first class, i purchased a couple of pioneers djm's and a numark mixer

all for a grand total of over $10,000. aWe did do up an informal agreement to repay the purchases.
After a bit i realized how irresponible he really was, as i had to insure and register the blazer to make sure he would make it to gigs,
which snowballed to the fact that he never had any money to repay the loans
so i started to withhold $150 from his pay to start to repay the loans
took just over a year to repay
then comes tax time, natually i was audited, and the $10,000 grand in wages that i claimed as repayent, was kyboshed, as i held it, not payed myself with a check
so let that be a lesson to you, whether you do things or not, and whether your loan is informal or not, make sure the repayment is via check, so you can track it, and the IRS (in your country) can see receipts

in my case this cost me an additonal $6000 in taxes due and fines
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Postby lordairgtar » Wed Aug 01, 2007 11:23 pm

I can see that with your situation, crazyd, but to say someone is irresponsible because some bad thing happened to them is kinda cold hearted. no one purposely gets an illness or purposely has a house fire our whatever. An arson burned my house to the ground (which was also my job place) which caused me to lose a job and a place to live plus all my possessions and two of my three cars. I wound up living in the remaining car for quite some time as the owner of the job and domicile had no insurance to cover me. Yup, I was irresponsible.
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