Would you make an investment with a family member who does not have such great credit?
nrvbrd
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Would you make an investment with a family member who does not have such great credit?
I ask this because this is going on in my neck of the woods.
It is a case of one person with excellent credit - investing with thw other family members who are credit challenged and somewhat financially responsible.
IMO, I do not think it is a good idea, but I have been told Family is Family.
Jordan
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Re: Would you make an investment with a family member who does not have such great credit?
No_way. If they don't hold up their end, they screw up my credit?? Nah-uh. That's a good way to drive a rift between families...seems damned if you do, damned if you don't.
peeweesgirl
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Re: Would you make an investment with a family member who does not have such great credit?
what type of investment ?
NYCHICK
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Re: Would you make an investment with a family member who does not have such great credit?
Absolutely not, I have been approached by many and I have seen enough Judge Judy shows to know how those stories end. If they are bad with their own money and credit why on earth would they care about mine????????
Sage10.03
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Re: Would you make an investment with a family member who does not have such great credit?
NO NO NO NO NO! One thing I will never mess around with is credit. It can dictate your whole life....DH and I both have excellent credit and I wouldn't screw that up!!!!
I also think it's a good idea to follow the rule of thumb in never lending or borrowing money to or from friends or family members...
september2004
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Re: Would you make an investment with a family member who does not have such great credit?
nope
wacky
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Re: Would you make an investment with a family member who does not have such great credit?
Never never never, Nvrbrd. Please beware. You and hubby have a lifetime of making oyur own investments together, do not jepordize your good name, in the way of family
shelzyp
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Re: Would you make an investment with a family member who does not have such great credit?
See I would say no, but I would feel really bad telling my family member no, and my DH would feel the same.
I would easily say no to his family, and he would easily say no to my family.
I hope noone would ask me to lend them money, since I would be very critical of how they spent their own money until I was repaid.
Latina511
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Re: Would you make an investment with a family member who does not have such great credit?
NO!!! I did this once with a family member, helped this person finance a laptop. After a few mths I took the laptop back because the payments weren't being made one time. I kept the laptop for myself but its already all paid off.
Also, Family is family but if I know that this person cannot do it then absolutely not. If this person is responsible like my brother or somebody then Yes. My sister helped me out in the beginning of me building my credit to finance my car and I have showed her that I am responsible and I am almost finished paying it off. So it really depends.
Dee7772
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Re: Would you make an investment with a family member who does not have such great credit?
this is a great way to cause problems in the family. An absolute no no in my book
Ang&Rich
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Re: Would you make an investment with a family member who does not have such great credit?
I vote NO as well. It's my personal opinion NEVER to mix business and family. Money is a hard thing to lose for anyone and ba feelings arise. I would prefer to avoid that with family and friends. Every situation is different but in my opinion - if you're already going into something and it's not on a 50/50 basis (in this example good credit/bad credit doesn't equal 50/50) then I say avoid it. It's hard to tell a person no but it's worsto fight with them over money when things go bad.
nrvbrd
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Re: Would you make an investment with a family member who does not have such great credit?
Ok, I will fess up.
It is buying an apt .
It has been Dh's dream to do something with his brother's. They want to go into some type of business together.
They want to get into the real estate game- buying low and selling high.
This seems to becoming more of a reality now. DH asked me yesterday what my thoughts were and I told him that I did not think it was a good idea because his brothers are not financially responsible and all they think about is fast money. I said we need to protect our credit, as we are looking to purchase a house soon.
He did agree with me about his brother's but he really wants to start a business with them.
ChristineC68
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Re: Would you make an investment with a family member who does not have such great credit?
Without more information, it's hard to say.
Are you talking about going into business with them or lending them money to start something?
I would lend family money I can afford not to get back.
brideinapril
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Re: Would you make an investment with a family member who does not have such great credit?
Posted by Dee7772
this is a great way to cause problems in the family. An absolute no no in my book
I totally agree.
wacky
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Re: Would you make an investment with a family member who does not have such great credit?
Tell your husband this, if they buy together and their names are on the deed together and his family falters, Guess what they are entitled and inorder for your husband to fight it entitles a long hard game
Maybe he should go about it alone
Sage10.03
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Re: Would you make an investment with a family member who does not have such great credit?
Posted by nrvbrd
Ok, I will fess up.
It is buying an apt .
It has been Dh's dream to do something with his brother's. They want to go into some type of business together.
They want to get into the real estate game- buying low and selling high.
This seems to becoming more of a reality now. DH asked me yesterday what my thoughts were and I told him that I did not think it was a good idea because his brothers are not financially responsible and all they think about is fast money. I said we need to protect our credit, as we are looking to purchase a house soon.
He did agree with me about his brother's but he really wants to start a business with them.
Wow...that's a really tough one...especially b/c it's between brothers... I would still say no - Let's just say - worst case scenario:
One month they can't pay the mortgage on one or two of their 'properties' and then you and DH are left to scramble and come up with the money....what happens then?
It will cause resentment on ALL ENDS if people aren't holding up their end. If they are alredy known to be financially irresponsible, then I would say that is your answer right there....
ChristineC68
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Re: Would you make an investment with a family member who does not have such great credit?
I wouldn't go into this type of investment at all right now. The time & money to close on apts is extensive and the market is starting to go the other way that I can't see recovering all these costs in the short term.
But I think a partnership could be interesting. I work for a family owned business. Some of the partners are really sharp and others not so much but it doesn't matter - it's family. They have been around for 50+ years and the 3rd generation is starting to work here.
Oh and one of the in laws or nephews, has a corporate real estate business venture for strip malls all over the place. These guys are the mgmt company but a lot of their family members are investors.
ETS: I presumed it was apts, but houses can close faster but have higher closing costs. Do any of them have real estate experience?
alina
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Re: Would you make an investment with a family member who does not have such great credit?
If the deal is 50/50 and the other guy is not responsible, then no, I would not do that.
But I would consider doing either a majority or minority stake in the investment, thus allowing me to either have control or only invest a little bit of money, thus decreasing the risk...
Also, is this an apt or an apt. building? If its a building, most likely you'll need someone to manage it on the daily basis, and that someone should have some property mgmt experience...
With regard to DH, if he wants to help a brother out, rather than be in business with him, then I would say he can invest just a little bit of the total, thus helping the brother but not risking.
