Private money from parents

[Camilla S.]

My parents are interested in lending me money for real estate investing. I do buy and hold rentals. I have never borrowed money yet so have no idea what we would write up, interest rate, length of loan, etc. Can someone who has actually done this before give me some input?

[Rob K.]

I think you will need the note to be secured by the property in order to write off the interest. Also, your parents will need to send you and the IRS a form 1098 every January showing how much interest you paid. It will be a write off for you and interest income for them.