Share Your Experience Working with Family Members?

[Alexander Persky]

Hi everyone, I am just getting started in REI. I have about 6-8 months before I can realistically purchase my first investment property on my own. For that I plan to go the FHA route to house hack a property, ideally a multi-family. However I would be able to expedite this process if I were to receive a loan from a family member. I am considering this route because a few of them have expressed interest to me in getting into the Phoenix market, it would be their first time acting as a lender, and would be my first time receiving private money. So, we all are on the same page about using this to make money, but more importantly as a learning opportunity.

It would be on me to structure the deals, and I don't really know a good starting point to doing that. I have seen plenty of examples of deals, but without much explanation to the why they are structured in such a way.

So to keep this simple, can anyone share their experience receiving loans from family members for financing properties? How did it ultimately work out? How did it affect the relationship between you and that family member?

One the flip side, can you share any experience you may have purchasing a family members property from them?

I am hoping to open up a discussion for anyone considering this route to jump start their REI career, and we can learn from those that have already gone this route to help make educated decisions. Thanks!