Pass on this deal
Cynthia's in-laws want to begin investing in real estate, and they have offered to help her and her husband buy a home. The catch is that her in-laws want some kind of ownership in the deal. Dave and his guest, Chris Hogan, are against the idea.
QUESTION: Cynthia’s in-laws have inherited some money, and they want to invest in real estate. They have offered to help Cynthia and her husband buy a home, but her in-laws want some kind of ownership as part of the deal. Dave and his guest, Chris Hogan, both think this is bad idea.
ANSWER: Yeah, I’d pass on that. What would you do, Chris?
Chris Hogan: I would absolutely pass on this deal. Cynthia, if you start to really look at this you’ll understand there are some things involved that will change the nature of your relationship with your in-laws.
Dave: Thanksgiving dinner will taste different …
Chris Hogan: It will feel different, too. And every time you see them and they see you, they’ll see dollar signs. So, protect your relationships. Avoid this deal like the plague.
Dave: This is not a good deal. I’m glad they got some money. Good for them. And if they want to do some real estate investing, that’s awesome. If they want to give their kids a gift, that’s fine, too. But no, we’re not going to go for a deal like that. You’re going to get yourself into a mess, and it won’t get you where you want to go. Even if it does, you won’t like the trip.