Is There a Difference Between Operating Agreements and Joint Ventures?

An m o u is a looser construct in terms of just outlining rules and responsibilities, capital inclusion might be. It's a little looser framework, but it still has some legal parameters around it. I find oftentimes, especially with my borrowers that we lend to, when we see their operating agreements,. A lot of the time searches can'ta their boiler plate templets.

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Should you borrow money from your family? It could hurt your relationship if the deal goes wrong, but strengthen an existing partnership if everything goes right. Maybe a better question—how should you start raising private capital for your real estate deals? When it comes to the debt vs. equity debate, which makes more sense in your situation? Don’t worry, we’re bringing answers to all these questions and more!

Welcome back to another episode of Seeing Greene, where your host David Greene answers questions from both aspiring and established real estate investors. We’re also joined by Alex Breshears and Beth Johnson, two expert private money lenders and authors of the newest BiggerPockets book, Lend to Live. They help tag-team some private money-specific questions as well as give context on who you should and shouldn’t accept funding from.

Want to ask David a question? If so, submit your question here so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can hop on a live Q&A and get your question answered on the spot!

In This Episode We Cover:

How to use real estate depreciation to offset income from a W2

Sell, refi, rent, or hold—which is the best move as the market gets shaky?

Whether building a purely passive real estate portfolio is possible or improbable

How to pay back private money and whether taking debt vs. equity partners is the best move

Borrowing money from family and how it could hurt your real estate deals and relationships

Why understanding a lender’s pain points is mandatory before accepting money from them

And So Much More!

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