Purchase Option with family member

[AKF]

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.

[Gold River]

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

[AJ290]

Family and money don't mix.  You're dancing on land mines.

[MichaelQuarles]

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.

[Bluemoon06]

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.