Investing with Family
I recommend dealing with family because I've had positive experiences dealing with a couple different members of mine. But I believe I had success because we left nothing up in the air. Everything went down in writing BEFORE the money was lent or the work started.
I recommend writing everything, and I mean everything, down in an agreement that is signed by both parties and witnessed by someone outside the family. You'll be happier in the long run.
Comments (3)
Make sure everything is down on paper, including the risks associated with the loan/investment.
It is more than just the terms, it needs to spell out what happens if the investment goes wrong.
Aaron Montague, over 10 years ago
Im about to make the mistake of investing with family
Russell Brazil, over 10 years ago
I am partners with my brother and father, but be careful when just simply lending from family members, investments that go sideways can cause an awful lot of tension. Like you said, get everything in writing, but also make sure the risks are clear and don't borrow more than they can afford to lose. That really goes for anyone, but especially for family.
Andrew Syrios, about 12 years ago