Asking daughter to help with investing with me

Flipper/Rehabber · Durham, NC · Member since 2020 · 55 posts · 12 votes

hello all!! It’s 2am I can’t stop thinking.lol

So,I want to ask my daughter to invest in me. She’s just brought her house in March at 23. She was in the army for 5yrs and while in there she saved and saved mighty good. She’s very picky where she puts her money. I totally understand she a single mom and went through a divorce. How can I sale her this business dial? I know I have draw up contact. What I’m trying to get is a multi family 3-4 units. I can ask for down payment,using her private leader? Giving her in interest, how much should the percents be? Paying her with then 4-6months after I refinance? Any ideas. I want to go to her with every t’a cross and I dotted. Thank you

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Jonathan GreeneBusiness Member

Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes

Everything about this sounds terrible. She is a 23-year-old single mom who did five years in the military and you want to ask her to fund your investment idea? What's your experience? What is your background in real estate? Why can't you seek alternative sources rather than risking the relationship with your daughter and your grandchild? By stating how do I sell her this deal, it sounds really sketchy. This is your daughter, you shouldn't have to sell her a deal.

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Tushar P.
Member since 2019 · 332 posts · 171 votes
6y
If you are unable to get the money from a bank (which has higher risk tolerance), do you think it is reasonable to ask a family member for it? Tread carefully, unless this investment is of more importance than the relationship itself.
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
6y
If you want to involve her so she has the opportunity to go into real estate or earn extra money, just talked to her. The fact that she's 23 and saved enough to buy a house on her own says she's better than many her age with money.
Give her some options....loaning you the money at X% interest (find out what the bank would charge you) or going partners on the place. If you do partners, make sure there is an 'escape clause' if one of you wants out and that the other has first right of refusal, also what happens with larger repairs.
It can be tricky working with friends and family, especially if you have different viewpoints.
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Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
6y
Everything about this sounds terrible. She is a 23-year-old single mom who did five years in the military and you want to ask her to fund your investment idea? What's your experience? What is your background in real estate? Why can't you seek alternative sources rather than risking the relationship with your daughter and your grandchild? By stating how do I sell her this deal, it sounds really sketchy. This is your daughter, you shouldn't have to sell her a deal.
[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
Zen and the Art of Real Estate Investing59 Reviews
Website View Page
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Crencenthia F Brown
OP
Flipper/Rehabber · Durham, NC · Member since 2020 · 55 posts · 12 votes
6y
@Jonathan Greene how does everything sounds funny. She did 5 yrs in the army went in right after high school. I say sell her because isn’t it what I’m doing. I’m selling her idea. I’m amazed how will she’s done and doing wanted her to see what real estate can do for her future. I’ve see many asking family members to come on board I just want to make sure I word everything right forage can understand. I’ll never ever do anything to harm her. Wow but thanks for your opinion
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Crencenthia F Brown
OP
Flipper/Rehabber · Durham, NC · Member since 2020 · 55 posts · 12 votes
6y
@Theresa Harris yes she is. I am so proud of her. I know it can be tricky working with family. This is why I asked how can I go about it talking to her about it. I wanted to make sure I don’t leave any table unturned. Going to her as I may go to the bank. The other two on this post making it seem like I’m doing something wrong by wanting to bring her on board. I’ve read many articles and books saying be creative everything isn’t always one way. I’ve seen many posts saying sons and fathers or daughters. I’m not understanding why they are saying I sound funny. If I was able to go the conventional way I would’ve. She’s turning 24 this weekend. Thank you for your remarks..
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Crencenthia F Brown
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Flipper/Rehabber · Durham, NC · Member since 2020 · 55 posts · 12 votes
6y
@Tushar P. I’m not understanding what you mean. Many families work together. All I wanted is to make sure I bring her all the right information. If I didn’t volume her I wanted ask for help to bring it to her. Many and many of new investor and old go to family and friends for help creative is what it call. I’ve read many BP blogs about asking family for help even friends. Why are you and some of the others making it seems no one never did it. Thank you for your comment
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Crencenthia F Brown
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Flipper/Rehabber · Durham, NC · Member since 2020 · 55 posts · 12 votes
6y
@Tushar P. At this time I can’t not go that way. So I’m doing the creative way. Now if she says no it’s not issues she has that right. This is why I post this I want to bring her all the right information. All these story I’ve read and others has talked about doing deal with daughters,sons and friends. As I see this is why people get into real estate it’s many ways to get funding . Thank you so much for your time
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Jonathan R McLaughlin
Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
6y
@Crencenthia F Brown
Hi there, I think there is a difference in approach to asking someone to partner and asking someone “ to invest in me” Andy his is true not just in mother daughter relationships.
In other words are you asking her to invest to further your immediate goals? Or are you proposing an ongoing investment partnership to mutual benefit? Both are fine unless you mix up the two. In the first one you should encourage her to evaluate the deal on its own merits and circumstances and offer terms she would be comfortable with. Any note should be secured by the property and both of you should have legal representation. I would want a legally enforceable personal guarantee, family or no. And remember, 90% of people you approach for money say no.
The second one, to me, comes down to whether or not you think your relationship would be strengthened or threatened by working together and if your goals are mutually compatible.
Some of the cautions you are getting I think are there because it’s not clear what you are hoping for. Hope this helps.
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Crencenthia F Brown
OP
Flipper/Rehabber · Durham, NC · Member since 2020 · 55 posts · 12 votes
6y
@Jonathan R McLaughlin
It's okay. I understand. Thank you so much
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