Hello everyone I’m new to bigger pockets and also new to this real estate investing.  My family receives 10k ever year from our grandparents estates and I really want to use that $$ to buy a rental property.  We curre...

Keep in Mind though gifting is carry over basis vs step up when inherited.

Take that God Given Gift and use it!

The private lender will have no equity in the deal but only make a return on their investment.I am not going to be living in this property as my primary residence so my question is because you can't use "gift money" to purchase an investment property through a conventional loan, what are my options to work around this and be able to use the private money to acquire the property?

The power-play that I love to incorporate is to use the cards to purchase gift cards from a company like Raise or Cardcash. 

You may give an unlicensed person a non-cash gift worth $50 or less in exchange for a referral and not violate The Real Estate License Act (TRELA) or Texas Real Estate Commission rules.

If house hacking isn't an option, you could consider a partnership or see if you can get private money.Does the stepbrother have a job and it is a gift that he doesn't pay rent or is he a mooch? 

In order to do this I have a partner who is seasoning/gifting 40k for a down payment, and I will be the one to take out the mortgage.

The next major problem with LLC's for real estate is; when a property is owned by you and does not belong to an LLC, then you qualify to transfer or gift properties to relatives and avoid paying capital gains taxes at the time of the transfer.

Hi Jason, A good hospitality tip would be to ask them for info about why they are coming so that you can give them some custom tips on how to make the stay the best and leave them a nice welcome gift or note.