Sourcing Property for Family or Friends

Just curious, has anyone ever sourced a property for a family member or a friend?
What has been your experience?
Would you do it again?

I will only source properties for my daughters, otherwise I see it as way too much pressure and I don't want the responsibility if something goes wrong.


MTR

 

Currently sourcing for one for my parents. You are right about it being a lot of pressure. Another thing is the conflict of interest, as I am also looking for one for myself at the same time.

Wondering what your criteria has been when looking for your daughters? Would be great if I can pick up some tips from you.

 

Ive done it multiple times. Will only do it for the right people though.

 

I helped a couple of people (both family and friends) find some places in Marrickville when I had my finger on the pulse due to my own buying. Epic deals, hard to pass up. Not something I make a habit of though.

Much better to empower people to find stuff themselves

 

I disagree with the latter, that's far from an absolute truth. I get friends to help me with investments in other sectors that aren't my forte, i help others in areas that are.

The people I mentioned in a post a couple of days ago who have made at a minimum 750k in less than 6 months in a tough market couldn't have done it themselves, similarly some non property investments ive had good 6 figure gains in i couldn't have sourced myself.

I think it's a really old school and often selfish trait to have an immediate thought of "how could this affect me" instead of "how could I help them".

That same approach is why I often have access to contacts and deals I normally wouldn't, because I've helped them or friends of theirs on other things.

If youre talking absolute basics then sure empowering others is important but that's kiddy pool stuff.

 

Yes I have and never again.
They use emotion to find something wrong with it and a lot of reasons why they can't purchase there. "I've heard it's got a bad name" why? "it's just what people say" ...

I don't every discuss properties anymore with non property people or business with non business people. Some people are just great at baking cookies and that is all they are ever going to achieve in their lives.

 

Yes I have but, like I am with my clients, I am a lot more risk averse when playing with other people's money unless it's a fellow property investor friend. I've made some good friends on here and what I might recommend to them would be different to what I'd recommend to a 'normal' friend.

 

As I'm looking at properties anyway, if someone told me they're looking, I'll have them in mind too. Doesn't take any extra time, and good to get feasibility practice too.

They'll be those that are "never ready" to buy, so you'll stop presenting your recommendations to them after a few tries.

 

So true. My mother discouraged me to buy the places I've bought. Now in hindsight she says I should have bought more. ( 2 commercial land that I bought way under market value )

Funny thing is, nowadays she doesn't comment much and is in fact asking me to start looking for her.

 

Its disappointing to hear that. Many business people were once non business people who got inspired or learnt by talking to someone with more experience. Likewise with property.

I'm not saying go out and talk with anyone and everyone but I'd rather judge whether or not to talk about business with someone based on their character first and of course consider their experience than to base it purely on experience.

I get help and advice from people in areas ive got no experience in at all, id be a tw#t to not help others with no experience.

 

Just on friday afternoon I was introduced to a really good mates former work colleague. 21 year old kid who was going to build a house for investment on a block of land. My mate had convinced him to ask me my opinion.

This kid was meant to have signed the contract on Wednesday bUT had been busy, by the end of our conversation and after speaking to a local agent i know specialising in the area he's luckily pulled out and potentially saved himself from losing up to 100k imo, at absolute least was 50k.

Going by the "rules" so many have here id be better off keeping quiet and let this poor kid lose a bunch of cash, what sort of human being is comfortable doing that?? All it took was me breaking it down a bit, explaining why I thought it would be a bad idea, doing some numbers for him and then calling a contact i already knew who knows the market inside out and having him provide his opinion too. Hardly any effort at all.

Incidentally our mutual friend is someone I regularly do business with, we lend money to each other etc and have for many years and now he's also a tenant of mine. Again, in complete contradiction to what so many seem to believe is possible/a good idea. The world doesn't have to be this ugly place where everyone is wary of everyone else.

Not targeting anyone in particular at all but there are times it does surprise me that there is are decent % of people on here who have a really narrow view and are closed minded. Isn't that what many people (say non investors) are widely judged for on PC /SS?

 

This guy does alright for baking cakes etc

 

Actually not looking at the moment, markets are changing so just sitting back.
It will be a development site, start small, perhaps 2/3 unit site.


MTR

 

Lol! I too, need glasses to see what I write