Recently heard some audio from the Virtual Kickstart package about finance partners. Generally, the advice was to not borrow money from a family member or friend.
I am in a situation where it is hard finding finance for my 2nd investment property and am keen to get the ball rolling.
I am considering asking my parents if they will go “guarantor” on a loan, using the equity they have in there family home as security for the deposit. How does this type of financial relationship compare to having a family member as a “money partner”? Is it the same? Does anyone have any experiences or comments?
Cheers,
Wazl[oink]
Well I’m in the clear. No one in my family has got a zack to rub together[blush2]. Seriously though, this hasn’t always been the case and money has caused a lot of problems within the family – thankfully all overcome now. I was too young to be involved but after years of observing all the troubles I made a vow with myself never to mix family and money and I will stick to it. However, this is just my family. I often hear about successful joint venture partnerships within other families. Whether or not this is an appropriate option in your case will depend on your family, your relationships, how much/ little money/equity is available within the family group and how you feel about asking for a loan/equity partner.
Flatout
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