I think this is a good market to get friends family together to buy and sell, renovate, wrap and heaps of other stratagies.
What do you think you could do if you had the chance but no cash??
D
If the deal is good and you can present it to family and friends with a share of the profit the money will come. Depends on how much you beleive in it, prior experience and the people you approach
Great reply now give me an example of what you have done to achieve this …
D
Hi there
We have done a joint venture with family, it went off well, everyone made money…………though I must say that I am reluctant to try again, I would much rather go it alone, have total control over the project. In saying that though Im aware that I am limiting ourselves, I guess it just depends what you are willing to do at the end of the day.
Over the last few mths we have approached several family, friends with projects and initially they are keen, but for one reason or another it doesnt pan out, their funds are tied up, perhaps we discover that we are wanting to achieve different things.
Its all a part of the game I suppose.With the joint venture that we did, we were all agreed on what we were wanting to achieve, who would be in charge of what, what the profit split would be etc, so everything was clear from the start, and there was a high degree of trust between us all. Like I said, we all made money and our friendship is still intact. The only thing that I would do differently would be to have everything in writing in case the next project didnt go as smoothly.
Keen to hear others stories
When Mum and Dad got a reno done on our house I asked them to borrow an extra $50k to help get me started. Advantages are that it is a cheap loan that can be used for the deposit. If you have 20% of the purchase price you shouldn’t have a problem borrowing the rest, may have to say the money is a gift so it all comes down to trust. At the end of the deal reward I reward my parents with a few extra thousand dollars.
Other ways are to get friends in on deals through personal loans maybe and then repay the loans for them plus a little extra each month. Lots of ways to fo about it just need a very good relationship and people who know the risksAnother way. We couldn’t give our teens / early twenties kids the money to help them get a start in R/E, but, we had equity in the family home. So with that as security and the combined earning capacity of all of us
(Mum Dad and 3 adult kids -2 studying full time) we borrowed to buy land, build and sell on. Works well under a family trust arrangement. And its a great interest in common. Yes I suppose there was a risk re the family home but I’m glad we took it. [suave2]Originally posted by Tizzy:Another way. We couldn’t give our teens / early twenties kids the money to help them get a start in R/E, but, we had equity in the family home. So with that as security and the combined earning capacity of all of us
(Mum Dad and 3 adult kids -2 studying full time) we borrowed to buy land, build and sell on. Works well under a family trust arrangement. And its a great interest in common. Yes I suppose there was a risk re the family home but I’m glad we took it. [suave2]Tizzy,
What you did well to minimise risk was to keep control of the entire project.
Some parents going guarantor end up exposing their home to whatever the child and his/her spouse wish to get up to.
Trust me – you did it right and had little to worry about.
Well done,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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