Can my parents help me buy an investment property?

[Will Thomas]

I am looking at purchasing my first rental property in North Carolina. I have enough money for and am pre approved on a traditional 20% down payment mortgage. I’ve made several offers but keep getting beat out by cash or above market offers. Is there any way I could borrow cash from my parents to make a cash offer on a property then finance it to pay them back? What kind of strategies are there and what tax implications might hit us? They have expressed interest in helping me I just don’t want to run into any problems come tax time. 

[Joshua Janus]

@Will Thomas It is possible to borrow from your parents to present a cash offer but make sure you have the terms all figured out with them as that can get sticky. You can also go the hard money route as well. 

Here is some guidance for getting your offers accepted in a competitive market

-short closing times

-avoid as many contingencies as possible

-walk through the property beforehand with an inspector so you can write in an offer without an inspection period

-cash > hard money > conventional financing > FHA/VA etc. financing

-provide a reasonable amount of earnest money within a few days of going in contract

-talk with the listing agent and provide evidence to build confidence in the selling side that you are serious and are planning on closing with the terms provided in the initial contract

-be flexible with the choosing of the title company. Don't immediately leave it up to the seller but don't be stubborn about using your choice