I can relate to everything you just said; someone spoke to me about the business he wants to start by March, and the business is capital intensive. After asking him several questions, I realized that the money he has won't be enough. When I asked him how he plans on funding the business when he gets stranded along the way, he said that's where I come in.
A lot of people venture into different businesses with just how to make money in mind without doing their due diligence, and that's sad.
Was the person going to put you in as the investor of their business? Well as a friend if you have money you can lend them, but if you're going in as an investor then you should be cautious. People can lose friendship by entering into business with their friends.
He wants me to go in as a friend, and neither going in as a friend or investor because he didn't do his research well. He only heard there's money in the business a decided to go in.
That's saddening. I think as a friend, the business relationship is flawed because you're probably going to be sentimentally invested, especially since you're not sure how solid the business is, which might cause issues in the future.