Ideas Please (by Ponari [TX]) Aug 10, 2017 1:28 PM|
Ideas Please (by LindaJ [NY]) Aug 10, 2017 1:34 PM
Ideas Please (by NE [PA]) Aug 10, 2017 1:44 PM
Ideas Please (by Deanna [TX]) Aug 10, 2017 2:06 PM
Ideas Please (by Colin [CO]) Aug 10, 2017 2:13 PM
Ideas Please (by Landlord ofthe Flies [TX]) Aug 10, 2017 4:00 PM
Ideas Please (by Lynda [TX]) Aug 10, 2017 5:58 PM
Ideas Please (by AllyM [NJ]) Aug 10, 2017 7:19 PM
Ideas Please (by Robert J [CA]) Aug 10, 2017 7:30 PM
Ideas Please (by BRAD 20,000 [IN]) Aug 10, 2017 11:06 PM
Ideas Please (by Ponari [TX]) Aug 11, 2017 4:14 AM
Ideas Please (by Danny [OH]) Aug 11, 2017 4:27 AM
Ideas Please (by Ponari [TX]) Posted on: Aug 10, 2017 1:28 PM
My much younger cousin has come to me for advice about investing. I told her I'd think about her situation and get back to her.
Her brother and his new wife are looking for a house - first time purchase - they eventually want to get into landlording as does she.
She wants to purchase with them but since it's not a true rental isn't sure how to set it up.
I think she should give them 'a loan' and charge them interest.
What do y'all think? Any ideas?
Ideas Please (by LindaJ [NY]) Posted on: Aug 10, 2017 1:34 PM
Wait... she wants to buy a house with them that they will live in? NO NO NO. nothing good will come of that! Don't even loan them the money for it.
Now if she wants to buy a rental with them.. unless she can't get enough money to do it herself, then maybe, but still brother AND wife, is not going to go well.
Ideas Please (by NE [PA]) Posted on: Aug 10, 2017 1:44 PM
There's no reason or need for her to hold hands with them on this.
If she follows your advice and the grand idea tanks, you're going to be the bad guy.
Ideas Please (by Deanna [TX]) Posted on: Aug 10, 2017 2:06 PM
Has anyone said, "Bad idea" yet? :)
Primary residence = primary residence
Rental = Rental
Family =/= tenants
Family =/= bank
The cousin's brother and wife need to buy their own house. If they don't have all cash for it, like most people in the world, they need to get a mortgage. If they can't get a mortgage, they don't need to think about being landlords, unless they're specifically shopping for a duplex or something, with the intention of renting out half and living in half.
The cousin needs to save her money for buying her own investment property, not financing the house that her brother and sister-in-law want to live in. --96.46.xxx.xx
Ideas Please (by Colin [CO]) Posted on: Aug 10, 2017 2:13 PM
Buy a. Fourplex live in two units rent two. 50/50 partners. --73.169.x.xx
Ideas Please (by Landlord ofthe Flies [TX]) Posted on: Aug 10, 2017 4:00 PM
Advise her to never rent to relatives, then give her a reading list of recommended landlording books, then tell her about local landlording groups. Then stay out of it.
What's about to happen is she's about to do something stupid then blame ALL of it on you if you give her any form of advice in making this deal work. She'll cherry pick what she wants to hear, ignoring the rest.
Once she's read everything, attended meetings, then she's worthy of your advice. --108.69.xxx.xxx
Ideas Please (by Lynda [TX]) Posted on: Aug 10, 2017 5:58 PM
Agree with all of the above. Ponari, you know better than this. Don't get involved with either one unless both cousins have their own money to invest on their OWN purchases. You can advise pros and cons of the various properties then let them make their own choices and walk away. Never say 'I told you so.'
The friends and family you try to help are the ones that will hate you the most. --108.87.xx.xxx
Ideas Please (by AllyM [NJ]) Posted on: Aug 10, 2017 7:19 PM
If she wants to do that it should be a triplex so that the couple and herself can have a source of income which would be the two other units. --73.33.xxx.xxx
Ideas Please (by Robert J [CA]) Posted on: Aug 10, 2017 7:30 PM
Even with distant family or good friends I will have a partnership agreement. For example, my friend has little money and little credit. Wants to buy 1 unit of a 10 plex so they can live there and manger the place. I agreed to allow them to buy 2 to 3 units with little down. But if they go on vacations like 50% of the time and are never home when they are in town, what kind of mangers will they be? Terrible, putting the burden on me.
For novice investors to partner with someone with the same Zero Knowledge is stupid. To partner with a seasoned real estate investor is key to success. --47.156.xx.xx
Ideas Please (by BRAD 20,000 [IN]) Posted on: Aug 10, 2017 11:06 PM
Give this advice to your cousin: hand them $5000 cash. It will be cheaper than entangling business + family + novices.
This falls under "If you have to ask you are not ready".
I get hit up a least once a week. My standard advice:
#1 take Ramsey's Financial Peace class and learn how successful people handle money - investing, insurance, wills, etc. After 40 years in business I learned A LOT! in a few hours of Dave's video training.
#2 find a local RE assoc, join, and show up to learn.
Ideas Please (by Ponari [TX]) Posted on: Aug 11, 2017 4:14 AM
Thank you everyone. I hear you all loud and clear. --47.188.xx.xxx
Ideas Please (by Danny [OH]) Posted on: Aug 11, 2017 4:27 AM
I have friends ask me all the time to live at one of my units. My answer is "I love ya too much to ever do that man". Anyways, if you plan to rent to family or friends you must plan to never getting rent and losing that friend for good. Simple facts. Ask me how I know? --74.128.xxx.xx