Call Us630-665-2500

124C S. County Farm Road, Wheaton, IL 60187

Should You Partner with Your Children to Invest in Real Estate?

Posted on in DuPage County Real Estate Attorney

DuPage County real estate lawyersFamily businesses can be a way for parents and children to bond, while also offering children a chance at a future they might not have otherwise had. Real estate investment is a different breed of family business, though. There are pitfalls that can leave you holding the debt and all that comes with it. This risk increases even further if you happen to have an adult child who is not quite ready to take on the responsibility. Does this mean you should not invest with your children? Not necessarily. The following can help you determine which decision may be best for your situation.

Taking an Honest Look at Your Child's Maturity Level

During the recession, a lot of real estate investors went under. Others flourished. What made the difference? It was often the ability to make sound, strong, and wise investment decisions. So, when wondering if you should partner with your children to invest in real estate, the first question you should ask is whether it is a sound and smart decision. You know your children best, so only you can truly answer this, but some things to look out for might include:

  • An unwillingness to help themselves (not working extra hours or finishing college courses, even though you are paying for them, etc.);
  • A refusal to take responsibility for basic daily living tasks (cleaning, cooking, laundry, etc.);
  • Poor use of time or other resources;
  • Any form of criminal activity;
  • Rebellious behavior or a general lack of respect for authority;
  • Addiction or gambling problems; and
  • A general lack of self-motivation.

Real Estate Investment with Adult Children Can be Rewarding

When children are responsible, ready to take on the extra task, and are willing to put for the extra effort to make it work, investing in real estate with your children can be a positive experience. It can provide them with a general sense of responsibility, can help alleviate some of the pressure off you (especially when it comes to completing physically arduous tasks), and can leave your child with a wonderful business long after you are gone. In some cases, it may even set your child up for the kind of employment independence and freedom that many people desperately crave.

How to Get Started

It is important to keep in mind that no parent should enter real estate investing with their child blindly. This is especially true for those that do not have a lot of hands-on investing experience. Instead, contact Stock, Carlson & Duff LLC for guidance and assistance. Our dedicated and experienced DuPage County real estate attorneys can provide you with sound counsel. In every situation, we will protect your interests. To learn more about how we can help, call 630-665-2500 and schedule your consultation with us today.

Source:

http://time.com/money/page/parents-adult-children-financial-support/

Back to Top