Whether or Not to ask friends and family and if so how

[Dave P.]

As I continue my real estate investing journey, I am considering the option of turning to family and or friends for a down payment loan and in turn offering them something in return i.e. a fair interest rate. I have heard on their BP podcast, both Josh and Brandon express opposing views and comfort levels as far as whether or not to turn to family or friends. In order to help me and hopefully others reading this, I am asking the BP community to respond to the following questions; 

1) What are the pros and cons of asking for lending from family and or friends? 

2) What are some tips for how to identify a potential private money lender if he/she is a friend or family member?

3) What is the best written or verbal message to broach the subject?

Thanks.