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Seeking Money from Family? 5 Tips to Avoid Potential Problems!

672 views · Published 13 January 2017 · 8:12 · Indexed 30 October 2026

Channel: DeRosa Group · 2017 · Education

We started investing twelve years ago with a loan from Liz's parents for $30,000! With this loan, we bought our first duplex in Philadelphia. This was the beginning of our investing career and also the beginning of utilizing family member’s money and private money to buy investment property. Most often when you are getting started and growing your investing business, family is a likely place to go in order to pool money together for down payments and equity. And it makes sense since family members already trust you. Having family loan you money or become partners with you in your projects can be incredibly helpful for your growth. However, investing with your family’s money can also cause problems and issues. The last thing you want to do is get your family member into a deal and then lose their money.

There are a ton of “do’s” and “don’ts” when it comes to this topic of investing with family member’s money. Hopefully these five tips help you avoid any problems down the road.

As always, we are happy to answer your real estate investing questions. Please submit questions to [email protected].

Learn more about The DeRosa Group at http://www.DeRosaGroup.com or on Bigger Pockets at http://www.biggerpockets.com/users/mfaircloth

Seeking Money from Family? 5 Tips to Avoid Potential Problems!

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