Family Loan Financing

[David Gaudet]

Experiencing quick success from my first STR property has me itching to do it again. We used a HELOC for the down payment and start-up costs. My wife and I have steady W2 income and hope to have the HELOC paid back in a few months. However, we would like to dive back in as soon as possible.

We both have multiple siblings who are intrigued by our venture into real estate investing.  They are still too conservative to partner on a property or make a purchase themselves.  But, I believe they would be willing to serve as the financial backing for our next property.  I think this would be a great toe in the water, and could potentially lead to them becoming real estate investors.  

My question is what types of loan terms have people setup with family members?  I don't want to insult them, but I also don't want to overpay.  My wife and I have great relationships with the siblings of interest, so trust is not an issue from either end.