Investor · Milwaukee, WI · Member since 2016 · 35 posts · 26 votes
So I have done a few deals nothing of major note. But lately, I have had several friends and family members saying they would like to invest with me on deals. The biggest one is my dad who wants to give me $100k to invest. Just curious to know who out there has had success with working with friends and family and how they create value.
@Demetrius Lindsey You could offer them great returns, or a percentage of the assets you're investing in in exchange for their capital. This allows you to do more deals, because you can leverage OPM (other people's money).
You've really only got three choices: equity, debt, or a mix of both. That is, will you provide them a return on their money and/or a percentage of the profit of a refinance or sale or rents. If it were me, I would make sure that when I found a deal that I wanted them to partner on that they understood exactly how they were going to make money and what the risks are.
@Willie James For sure agree with that. I want to make sure everything is on the table. I guess I'm looking for he the logistics side of it. Do I form an LLC, how do banks look at money deposited in my account, profit sharing etc. Looking for a gamplan on how to build this.