I have a potential Purcahse Option deal with a family member. Does any one have tips on how to explain the deal without offending them? I don’t want them to think that my only interest is making money off of them. They have not been able to sell their home and it would be a great Purchase Option.
Hi,
Then why don't you do a equity share deal with your family member, effectively making them a partner and then do a lease option to someone as a end buyer.
This way your making something and your family member is making something on the upside and sharing together with you to make some money.
GR
Family and money don’t mix. You’re dancing on land mines.
I think you should state exactly this… I am doing this so I can make a HUGE amount of money and get them to sign a disclosure that you can take to the family thanksgiving dinner when they start talking crap.
I always do business at arms length. My rule of thumb is that I don’t do business with anybody that I can’t sue. Not that I am trying to sue somebody, but that allows me to gauge just how long my arms are. If I sue this person will it make my next pool party or family reunion or Christmas dinner difficult? If it will I don’t do business with them.
As MichaelQuarles said, business is about making large sums of money. If I make some and this person doesn’t that will invariable cause bad blood. Everybody will say I sharked my poor relative. I would rather just give them a gift of a couple of hundred dollars as oppose to going into business with them.