154: Rookie Reply: Is Investing with Family Members a Mistake?

Real Estate Rookie

BiggerPockets

How To, Entrepreneurship, Business, Education, Investing

4.7 • 1.8K Ratings

🗓️ 5 February 2022

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

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Summary

We’re continuing the Rookie Reply Direct Message trend! This week’s question comes from Minnie through Tony’s Instagram DMs. Minnie is asking: Should you partner with family members when investing in real estate? While this may not be the most fun question that Tony has received in his DMs, it’s a very necessary one to answer, as many real estate investors start their journey partnering with family. While at times it can be stressful, working with family can also be rewarding in more ways than just financial. But, if you want to work with someone close to you, be prepared to treat your investment like a business. Here are some suggestions: Treat it like a partnership by signing an operating agreement or joint venture agreement Make sure your family member knows the risk of investing Don’t do anyone favors, present great investing opportunities instead of asking for money If you feel like you need to update your partnership agreement, do so quickly and with the consent of your partners And more in the episode… If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE). Links from the Show Real Estate Rookie Rookie Facebook Group Real Estate Rookie Youtube Channel Real Estate Robinsons Youtube Channel Mini_vannnn's Instagram Omid Tehranirad's Instagram Alpha Geek Capital Scott Trench's BiggerPockets Account Check the full show notes here: https://www.biggerpockets.com/rookie154 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Real Estate Rookie episode 154.
0:08.5	My name is Ashley Care and I'm here with my co-host, Tony Robinson.
0:12.9	Welcome to the Real Estate Rookie podcast, which also has a Real Estate Rookie Facebook group.
0:18.8	Which if you're not a part of, it is the most active, the most engaged,
0:21.9	Real Estate Investing Facebook group that there is. But if this is your first time joining us
0:25.6	on the podcast every week, twice a week, we bring you the stories, the inspiration, the motivation,
0:31.8	the education that you need to get started as a Real Estate Investor or continue to scale if
0:36.8	you've already started. So Ashley, another beautiful day. We're here. We're on the podcast.
0:42.4	Things are feeling good. What's going on on your side?
0:44.5	Go ahead. Tell me the temperature. What is it there?
0:46.8	It's actually beautiful. If I could, if I could say, if I could say like perfect weather,
0:52.4	I think that's what today would be. It's like 76 just enough clouds so that it's not hot,
0:57.8	but the sun's shining through. So this is winter in Southern California.
1:01.2	Tomorrow it's supposed to be like five degrees out, I think. Yeah, 19 right now.
1:05.8	Like when you look up the weather on your iPhone app, it just says stay inside. It says,
1:09.6	don't bother. Yeah, we actually do have a winter storm watch right now. It says, yeah,
1:15.5	it was 4 p.m. It's supposed to start snowing. There you go. It sounds like a good time.
1:19.2	I feel, you know, I feel like I sympathize for you because I feel like every time you
1:27.8	go somewhere, whenever you try and go back to Buffalo, you always get stuck in some other
1:32.2	state because of whether or so bad trying to get back home. So you stuck where that land
1:36.4	in the last week, you know, you were stuck somewhere else the last time you went out first.
1:40.5	It was Detroit coming back from Denver and then it was in Atlanta coming back from Tennessee.
	...

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