New to Real Estate · Saint Petersburg, FL · Member since 2012 · 153 posts · 13 votes
I am planning on bring in two family members to invest in my first investment property. One lives outside the U.S and the other lives in a different state. i just read this thread http://www.biggerpockets.com/forums/50/topics/58856-financing-investment-deals-important-read
Now I have questions about doing this, do I need to be concerned with legal issues when getting money from my family for this? I'm a bit confused and don't understand what is the difference between this and borrowing money from them for personal reasons? For instance if they leant me the down payment for my own personal residence is that different from them lending a down payment for an investment property?
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
13y
I believe as long as it's people you know - I've always assumed it was fine with no big legal issues. The big issue comes when you start to "Solicit" for investors.
Anyone else have ideas? I admit - I'm not the most experienced with this.
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
13y
Justin Morris,
Look up "Regulation D" on the SEC website.
You are fine doing business with people you know as well as connecting with those who know that business. They would qualify as having knowledge in that field.
You cannot publicly solicit investors. You must essentially pre-qualify them or must have an established relationship.