Skip to content
General Real Estate Investing

User Stats

46
Posts
26
Votes
Eric Burgh
  • Real Estate Professional
  • Hoboken, NJ
26
Votes |
46
Posts

Lending to in-laws - Smart move or dangerous move

Eric Burgh
  • Real Estate Professional
  • Hoboken, NJ
Posted Dec 17 2017, 05:33

So I'm in a jam with my wife and I on opposite ends - my parents are buying a new place and need to borrow money ($120k).  Good relationship with us, they have excellent credit, financially responsible, 3 houses paid off - 2 of which are rental properties with steady tenants and 1 primary residence which I would update their bathroom and would go on the market in spring and likely sell for $400k.  They are amateur investors so asked my wife and I if we would lend them as much as we could and they would give us ~4% interest, rather than give it to the bank (sounds good/generous to me to keep the money in the family).

I have some available cash which I'm letting them borrow, but the majority would be my wife's money which she is saving for our house which we buy together in a year.  Right now her money is sitting in the stock market and I have no idea what return she is getting.

Wife's answer was an immediate no, based on principle and not numbers (her return % on stock investment).  I feel a bit insulted and sure my parents will as well, but wondering is this something to try to talk her into or is it too close to home and leave it be.

Loading replies...