Real Estate Investor · Matthews, NC · Member since 2017 · 219 posts · 173 votes
Hi BP family. I've been considering reaching out to friends to see if they want to get involved in some real estate deals. Right now I'm doing residential projects, 4 units or less. I was thinking of offering them either an equity position in the property or getting a straight up loan. But the more I read about acreddit vs non-accredited investors the more confused I get. So is it legal to simply sit down with a few friends over lunch and talk about the possibility of them investing with me? Should I wait until I have a firm deal in mind? I'd really like to see if there is any interest ahead of time. And yes, I know I can talk to my attorney. And I will. But I was hoping I could get some insight and advice from this group. Also, does this change when getting into larger multi-family?
Hi BP family. I've been considering reaching out to friends to see if they want to get involved in some real estate deals. Right now I'm doing residential projects, 4 units or less. I was thinking of offering them either an equity position in the property or getting a straight up loan. But the more I read about acreddit vs non-accredited investors the more confused I get. So is it legal to simply sit down with a few friends over lunch and talk about the possibility of them investing with me? Should I wait until I have a firm deal in mind? I'd really like to see if there is any interest ahead of time. And yes, I know I can talk to my attorney. And I will. But I was hoping I could get some insight and advice from this group. Also, does this change when getting into larger multi-family?
Thanks in advance for your thoughts
Yes, anyone you have a "substantial" relationship with is fine. That means you can not send out random emails to people you don't know, you can't place ads on giant billboard or on a rally car, and technically you can't discuss investing with you on first contact. After you have met 2 or 3 times it should be fine. Lunch with friends to discuss plans is a great idea.