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Updated over 3 years ago,
How do I provide assurances to family lenders?
Hi BP peeps! So I am about to start making my rounds to friends and family, to generate gap funding for my first deal. I had mentioned this in a meetup, and someone told me to provide them assurances, one of those being to put them on the title of the house. But, my question is, if I have multiple family members loaning the company money, how could I get it so they all hold second position on the house? Is there a fund entity I can create? Or would it be best to just list them 2-Nth with the larger investors getting preferential positions? Or do I just scrap this idea, and is putting them on the insurance and signing a loan agreement enough?
Thank you in advance!!