Hi, everyone! I am looking for some advice in terms of how to get started in the real estate business. I do not have much capital to start out with, but I may be able to get started with a private money lender (i.e. a family member). I would like to purchase a duplex, live in one unit, and rent out the other. That is my initial goal when it comes to real estate investing, yet if there is a better option, I am open to suggestions.
That's a good option but you have to ensure it's set up like a business agreement. In other words, you and the relative should have a legal document spelling out the terms and conditions of the loan, just like if you're borrowing from a stranger. Treat it like a business or it will come back to bite you.
I recommend you borrow money from the relative for a shorter term and pay them back as quickly as possible. You don't want financial problems to get in the way of a relationship.
Hi Joseph, as Nathan recommend, relative can be a good way to borrow money. I also recommend trying to find attractive deals that other investors would be interested in buying and are willing to give you some equity for finding the deal. Also, in my experience, wholesaling has proven to be a good way to make money while using only a small amount of my personal funds.
Last, if you find a seller finance opportunity, see if you can get creative with the financing there.