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Updated almost 4 years ago on . Most recent reply

Parents are forcing me to be a credit proxy for their flip.
Hello! I am a freshman in college majoring in real estate and I got inspired to pursue a career in real estate because of my mom, who was a successful realtor for a very long time. Unfortunately, the family business recently shut down and caused my parents to go into bankruptcy in 2020. Because of this, my mom’s credit, which has been near-perfect all her life, is now not high enough to secure a loan from a private money lender to finance a flip she is very eager to do. I have a credit score of 700 and my parents are forcing me to become the credit proxy for this deal. Obviously for an 18 year old, this is a huge situation which while I am grateful for the opportunity, I am understandably weary. If this project is a success, I will be given a share of the profits and my score would boost tremendously. But if it fails, I would not be able to engage in real estate investing, and much worse. Even though they are forcing me to comply, I want to know if I am wrong for being weary about this, and if not, what can I do to make sure this all goes right? A response would very appreciated, thank you!
Most Popular Reply

@Dylan Salem
Hey Dylan this is a tough situation all the way around for you. I will answer it from a different perspective then the previous two responses.
Ask yourself the following questions and you might look at this differently:
Who is paying for my college education?
Who is paying for my rent and has been doing so for the past 18 years?
Who is putting food on my plate and clothes on my back the past 18 years?
What would happen to me if my parents completely cut me off financially right now as an 18 year old college student?
If you analyze the situation you may have way more to loose by not helping your parents out.
I would never put my kids in this situation but if I was down on my chips, I hope my kids would consider helping me out based on what I have done financially for them.
I hope everything works out for you!
Good luck!