Some people we know have expressed interest in partnering with us on some RE investing.
What they bring to the table is capital and nothing else. (Not being rude, that’s from their mouths. They’ve never done anything like this before.)
While this seems to be a nice opportunity, I have no idea on what the possibilities are for a business relationship like this or what options might be available to them.
They are retired, and I’m certain any funds they have are in retirement accounts (though I don’t yet have details on what kind of instruments).
And it sounds like the guy they work with for their retirement accounts is not the sharpest tool in the shed.
In order benefit from this, my wife and I will have to drive this ship, so we are trying to prepare for future conversations.
We’re looking to find out what kind of options might be available to help give them (and us) some direction on the best way to operate or do deals together.
Some questions that come to mind:
- What does it look like to be retired and wanting to access $200k from your retirement accounts?
- They are looking at this as a passive investment opportunity and would prefer as simple as possible regarding their involvement. What can/should this look like? A simple promissory note? Should they become actual partners in the business?
If it were up to them, sounds like they’d just like to write us a big check in return for monthly smaller checks that make the transaction worthwhile.
That sounds too easy if not unwise or impossible all together.
Any help (or where to find it) is greatly appreciated.
I would not do a partnership because they can become messy especially wheN you barely know them. Maybe worse than marrying someone you don’t know
Do a simple note and secure it to the property. Treat them like a bank or better and get your system setup. maybe they will bring others to you and you have your own private lenders. See what interest rates, term, security, etc works for both of you
If you need a private lending “checklist” pm me.