Asking for private money

[Kenzie McIlvoy]

I have family that has $25K extra a month they're trying to "figure out what to do with." They also have $350K in equity in their home they could work with. My husband and I have spent the last year and a half researching on how to invest in real estate. We want to BRRRR but don't have enough capital ourselves to get started. We're wanting to ask our family if they'd partner with us by investing their money in a deal / rehab while we do all the work, offering them 50% of the profit plus what they loaned us.

We currently don’t have any specific deals that we would like to buy. We’re wondering, should we talk with these family members now as we’re trying to come up with a game plan and include them every step of the way or should we find a deal and be able to give them exact numbers? And if we should find a deal first, should we make an offer and have it excepted prior to talking with them? I’ve been listening to the BP podcast and I’m pretty sure they suggest to find the deal first. This is a very close family member so I’m not sure if the same rules apply. We’d love any insight or advice we can get!