Involving Friends & Family - Do or Don't?

Hello Valerian,

This can truly go either way. I would first evaluate your relationships with these individuals. Is it strong to start with or is it somewhat fragile? Second if you decide that it is a strong relationship, begin by explaining your overall goals and business plans. They need to see the bigger picture!

If they are comfortable with your plan than they can be a great asset to your team. Just like finding a Realtor the regular way some will understand your vision other will not.

On our second and third deals we needed additional $$$ for our down payments. We asked my father for the money. He at first didn't want to - he didn't understand what we were doing and didn't want to contribute to us getting ourselves in trouble or in a financial hole.

After explaining our full plan including an exit strategy he gave us the money and made money on the deal with us. He still doesn't fully understand our vision, but he is willing to help out on a deal by deal basis.

Hope this helps!

Sometimes it is best to feel out your friends and family about their feelings about working together and real estate investing. Then when the time is right just ask them. Do not let anyone every steal yours dreams, so if they do not want to help, that is okay, you will be able to assemble a team of others.

Also, you can ask them for any referals for other contractors or services you may need. Everyone wants to succeed and make money and if you can do it together and they understand how they will be making money, it can be a win-win for everyone involved. Good luck on all your deals. Believe and Achieve! Indiana-Joe

Hi Valerian,
I am new to this concept too, but have been in real estate sales for many years. I have been working for the past 8 years in the home improvement business. I just wanted to tell you, that having these two great people in your life now is a fantastic gift. Your realtor friend will be a great help when researching properties, expired listing's, offer's whether they are low or not, realtor's are struggling now. Here's a thought. She might take offense to you going to someone else also. When I was out there, it didn't matter what offer I put in. I took advantage of the meaty offers and the thin offers. In the end, it all came to a nice size result together! As far as your contractor relative. He can be such a great help in rehabing properties. Plus the nature of his business will expose him to potential sellers and other investor friends. I see these two as assets not as liabilities. It'a win/ win situation for all parties involved. Much success in all you do..........
Sincereley,
Lubertha

Family and friends are a great place to start building your team. Whether they are doing simple things like telling you about potential properties or on the business side of being your contractor they can be valuable resources. The network of referrals they can generate for you is important. The best deals I've found have been from someone who knew what I do and referred me to the seller before they got to the realtor and listed the property. I never would have found the deal at that price otherwise.

If your really close to your family then nothing should happen but I watched this show and they say most lawsuits in business are with family.

Wow, thank you to everyone who has responded so far! Such wonderful advice!

Yeah, my real estate friend is struggling so much right now that he doesn't even do real estate anymore! (We didn't even know it until the other day when we finally broke down and asked him a question about it.) He has put it on hold until the market goes back up, and is doing a different job in the meantime. Gee.

Also, I have heard that before about how family sues family so often, but I had forgotten about that. Funny, I was just reading something similar recently, too, about how winning the lottery can destroy a family, because everyone starts sticking their hands out, and when you say "no" they try to sue you for a share! Crazy... So thanks for that reminder. It's good to keep in mind, for sure, while also good though to keep a positive mind if you have a good family.

I feel that as I get closer to learning and being more comfortable with the knowledge of the REI process, I will probably involve a few close people who I'm discovering may be good to involve. Apparently, I have an uncle who did something similar to this back in the 70's! And we also discovered that my boyfriend's parents have tried this, too (although they gave it up soon after trying). We're not planning to do that though.

So, thanks again to everyone! And I still look forward to more advice. So many perspectives in the world = wiser people who share them.

Thanks!

Why not invite yor real estate friend into this opportunity. He can be an advantage to both you and himself. What's your take on this? Much success to you........Lubertha

Maybe he would like to work with you and you maybe be amazed !!

Warm regards,

Paul

Talk it over with him