Let's get creative! How to create a partnership with loved ones

[Amanda Jewell]

Hey BP Fam!

I've been gearing up for the last 6 months and am ready to pull the trigger on my first deal (a Hurricane Ida gutted SFH as a flip). But I am always lining up my next moves and am inspired when I hear podcast guests discuss their passion for helping others and making that the heart of their business. It got the wheels turning about how I can partner with close friends and family who all have unique needs. I'm trying to work out what would be the best arrangement, for all involved, and am hoping to get some feedback from you pros out there on successful partnerships with loved ones that hopefully go well and I can apply this strategy to future partners.

1st option:

My best friend is struggling to buy a house (like most FT home owners are) or even find a rental and I was toying with ideas of how I can grow my portfolio, while also helping her find housing. What she brings to the table is the option to get an FHA loan (I don't believe I qualify since I already have a home?) some cash, and of course a rock star tenant. I'm looking to grow my rental portfolio. Thoughts were to partner with her--where she secures the loan and supplies the downpayment, I would find the deal, manage and finance the renovation before she moved in as a tenant and finally help her find a home at some point (I'm also an agent). My thoughts then were that she could have a safe and comfortable home while she continues to look/save and see where her long-term relationship is going (buying together at a later date instead of on her own). Then my thought is that I could buy her out when that time comes. Is this a good idea?

2nd option:

My parents are both retired and their home is PIF. They live about 30 minutes away from all friends and family since everyone close has moved away. They also don't need the size home they have and are beginning to struggle with mobility to get upstairs (negating the whole point of that space). They were heavily hit by Hurricane Ida and it's been a major stressor on them to manage the repairs. 

In a dream world, I would love to have them move into one of our rentals so they wouldn't have to worry about upkeep, maintenance or repairs. I'm just not sure quite how to structure this since selling their house and moving seems overwhelming to them (most elderly don't want to make the leap until they absolutely have to BUT I'm also worried that Alzheimer's runs in my family and I would like my mother to be familiar with a new location for a while before symptoms begin setting in). 

My father is a retired vet and could get a VA loan so my thoughts were to work with them to find a home near us (and the grandchildren) that they could help choose the location and renovation finishes. Similar to the option above, they're on the loan that I can't acquire on my own, I pay for renovations and they become tenants. This is where it gets tricky with business and personal...it feels strange to collect rent from my parents when they currently don't have a mortgage BUT, I would be the caregiver in their later years (another pro to having them closer) since my brother lives further away and has a demanding career with lots of travel. What would be the best arrangement to eventually acquire the home, while also giving them the security (cash from the sale of their home), a close proximity to friends/family/grandchildren and a smaller home that maintenance would be cared for?

Side note: I'm also in the process of starting an Opportunity Zone Fund and was considering a situation where they could shelter their capital gains from the sale of the home. The downside is that I can't directly purchase a home in an opportunity zone for them to live in (my entire county isn't considered an opportunity zone). But perhaps I could fund the home they live in and they could fund my other investments in OZ? In essence, "trading our cash"? Open to any feedback at all. 

Thanks, as always for giving back!