Due to market conditions, such as tight lending standards, young investors are turning to family and friends to help them afford personal and investment properties. The staff at RealtyTrac takes a look at the risks involved with investing with someone else, particularly a family member or friend.

Real-estate investment partners Andy Heller and Scott Frank, who were friends before becoming partners, have found their partnership mutually beneficial and have been very successful. However, this is not the case with all partnerships between friends and family as investor and attorney Bill Bronchick explained:

Just because someone is a relative or a friend doesn’t necessarily make them a good business partner. Bronchick noted that the best partners are those who have experience in real estate investing. What you don’t want is someone who is going to call you every week asking what’s going on or second-guessing you.

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