Rental Property Investor · Phoenix, AZ · Member since 2016 · 94 posts · 13 votes
So thought I would post this out there as this popped into my the other day and I realized it would be a great discussion. Let's say you have a grandparent who's credit score is 800+ who is interested in before they leave this earth to help their family do better financially. Then let's say you already deal with apartment buildings and such and have quite a good amount of experience in real estate. So would there be a way to utilize this amazing credit score of your grandparent with your already good business and model and experience, to parlay this into obtaining better loans or credit going forward to purchase more assets thereby increasing the success of your family and doing something great to remember your family member going forward. And in addition, they would smile knowing they helped the remaining generations for years to come they wouldn't know or see.
Loans, lines of credit, financing, credit cards...any thoughts or ideas how to put this amazing person's score and life to good credit use before they pass on?
@Christian Beebe You can absolutely use your Grandparents income and credit to start your investing. You will most likely structure it as an investment property with 20 to 20% down.
I think it's a smart idea, just another form of OPM. My suggestion is to loan the money from the GP if at all possible instead of utilizing the credit and becoming a partner to avoid the family disputes once he/she is no longer on this earth. He/she may be willing to forgoe the balance owed once deceased. If utilizing the GP's credit have something in writing to avoid any disputes
Having their name(s) on your documents can be very complicated when they die one day because other heirs will be entitled to a portion of their assets. Their debts will also have to be reconciled before their assets can be distributed to their heirs. Also if your deal does not work out it can complicate and likely harm family relationships.
Find a way to work on your own deals. I sense your credit is bad so instead of asking them to co-sign or asking for money or a loan, how about talking to them about how they became financially successful and following their advice? Work on getting your own finances in order and eventually you will be able to do deals without them.