How to approach the In-Laws

[Michael Garrett]

Is there a secret?  I know it a bit of fear holding me back and I know the father and mother in law a very risk averse.  I am excellent at coaching others but I just can't seem to get over this hump.  They have a beautiful home that, with a bit of research, I know they are sitting on quite a bit of equity.  My FiL also owns a pretty lucrative business that brings in decent income too.  What I am trying to say is that a $150k loan would not hurt them that much but it is obviously a lot of money.  What are some good tips in approaching the subject and talking points?  Any suggestions would be welcome.  I have my eye on a couple properties out of state in a low key market that would probably break even right away or make us some minimal returns.  The idea is to treat as hard loan for down payment and some reno with refinancing to pay back within 6-8 months.  Would love any input if you've done this before.  

[Joe Splitrock]

Quote from @Michael Garrett:

Is there a secret?  I know it a bit of fear holding me back and I know the father and mother in law a very risk averse.  I am excellent at coaching others but I just can't seem to get over this hump.  They have a beautiful home that, with a bit of research, I know they are sitting on quite a bit of equity.  My FiL also owns a pretty lucrative business that brings in decent income too.  What I am trying to say is that a $150k loan would not hurt them that much but it is obviously a lot of money.  What are some good tips in approaching the subject and talking points?  Any suggestions would be welcome.  I have my eye on a couple properties out of state in a low key market that would probably break even right away or make us some minimal returns.  The idea is to treat as hard loan for down payment and some reno with refinancing to pay back within 6-8 months.  Would love any input if you've done this before.  

 For the sake of your marriage, find a hard money lender that is not a relative. So many things can go wrong and mixing money with family could have devastating results. If the deal is legitimate, you will have no problem getting money from a hard money lender. The problem with in-laws is they may give you money based on trust. Trust is a good thing, but it assumes you know what the heck you are doing. 

The fact that they have equity in their home or a successful business doesn't mean you are entitled to any of it. 

What does you wife have to say about all this?