Joint Real Estate Investing with a Family Member

[Luc Desroches]

Hi BP Community, 

A family member and I have recently mentioned a mutual desire to get into real estate. She owns a personal residence and wants to use a HELOC to invest in me finding a property to BRRRR. This would be my first rental purchase, so it provides me a source of funding that is much cheaper than hard money. I have almost finished reading Brandon Turner's "How to Invest with No (and Low) Money Down" and am gathering that there are some legal hoops that I would need to jump through so I don't end up "in jail", which the book warns.

Does anyone have experience receiving funds from family members? What legal steps need to be taken before I can make a purchase? Any insights would be appreciated. I'm eager to get both me and my family member into REI!