A lifelong friend wants some help purchasing their first home and has proposed that I could loan them money for a share of the increase in property value after some period of time.
They have secure, professional careers and with a contract would be a relatively safe investment. I'm considering helping them out with around 30-40K (they primarily need help with the downpayment). I'm just not sure what would be an appropriate return on this investment.
If the property value increases by 50% in 5 years, should I expect 50% on my investment? Should I expect more since without my investment they might not be able to get a house at all?
I want to help my friend, but i'm well aware of the risks surrounding the mixing of business and friendships. Should I run away lol? Thank you for any help.
Submitted July 29, 2020 at 09:00PM by GraphiteRifter https://ift.tt/39EtZXB
