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Updated about 2 years ago on . Most recent reply

What's a good way to structure a deal with a family member
Hi all! I'm just starting real estate investing and trying to figure out how to work a deal with a family member that has the cash.
I'm thinking something like this.
- I find a good deal on a single family that needs a lot of cosmetic rehabs (I can do that) but has good bones and is in a desirable neighborhood
- Family member puts up the down payment and sets up the mortgage
- I live in the house for one year and fix it up while living there, using my money. I also cover the mortgage expense while living there
- After a year is up, rent the house, and the rent would go towards the mortgage. I would manage the rental.
- Rinse and repeat
It would be a 50-50 split on equity.
Has anyone ever taken this approach? Does it sound fair and reasonable?
Most Popular Reply

It's dangerous bringing family in. Especially if both of you are newbies and neither can steer the ship. I would make sure the deal is killer before getting into anything.