We are looking to buy our 5th property but we don’t have sufficient funds to use for closing fees. Our option is to use my Dad’s money, kind of make it as a gift for us but the lender we are working with said that funds from family is not allowed to use for investment. What are your thoughts? Thank you in advance.
Can you get a LLC structured where he is helping fund the deal, part of the company owning that specific property, or even look at a Tenant in Common agreement? Would they accept him as a hard money lender if you had a legal agreement with him to pay it back? You could always structure any agreement to have a buy out option for your dad's shares down the road.
@Cody Lewis I’ll keep that in mind. Thank you!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you