Does the old adage of not doing business with family or friends hold true in investing?
Are you more careful to put it in writing or just to explain it better. I know we’re supposed to tell everyone we can what we do (invest) but now a friend has asked me to buy his house. It’s a good deal, by the numbers and I’ve offered to just help him sell it on the market.
So do both sides laywer up or does that cause more trouble?
You buy it and make money off it, he’s going to feel like he got taken. He might not EVER say it, but come on, if you make $25,000 off HIS home he’s going to resent it.
Or you buy it and LOSE money on it, then you’ll feel different because EVERY TIME you set eyes on him you’ll be reminded of your $XXXXX dollar loss. Maybe it was because of something you missed or he didn’t know about, but either way that’s a crappy conversation.
It’s human nature man, it’s not a shot at you or your friend.
There’s a great old saying that goes…You never REALLY know a relative until you have to split an inheritance with 'em.