Purchase STR using private money

[Alexander Canha]

Hello!

I have one STR under my belt but looking to grow and wanted to do so using private money as I have some friends and family that have expressed interest. I was hoping to connect with someone who has used this type of financing to purchase and manage an STR in any capacity. Thanks!

[Collin Hays]

Quote from @Alexander Canha:

Hello!

I have one STR under my belt but looking to grow and wanted to do so using private money as I have some friends and family that have expressed interest. I was hoping to connect with someone who has used this type of financing to purchase and manage an STR in any capacity. Thanks!

Are you investing for yourself, with a loan from other people?  Or are you investing FOR other people?  

If you are simply borrowing from friends and family, that would be a big "no" for me. Relationships are not worth jeopardizing over business deals, even if it's just a one percent chance. 

If you are investing FOR other people - friends and family - you have the same risk. If things go bad, it damages your relationships. I went in business once with two friends and we all went in agreeing that nothing would jeopardize our friendships. Famous last words.  Fellow investors have different goals, mindsets, quirks, and risk tolerances. That leads to a lot of problems. The business ultimately failed because of these divergences. We kept our friendships intact, but it was pretty painful, and I would never do it again.