Posted by BTI on May 15, 2006 at 12:32:12:
Don’t learn the hard way. If your going to do this you make the payments directly to the parties that need to be paid. Yes you can be wiped out in a tax sale. Get a note and mortgage/trust deed to secure your loan, family needs to be kept on a business basis too.
When I was a young investor I had a brother and 3 friends who were also investors and our word to each other was as good as gold, if we needed some money quick we could borrow from the others with just an I.O.U. (and that was just for our wives benefit, in case we died they would know what was due or owed) but when each of us tried to do that with family or best friends, we got burned and wrote it off to experience. So keep it on a business level, maybe he should sell depending of what his future looks like for the next few years, some times it just better to regroup.