Background

Samantha had always been interested in real estate investing. After years of saving and researching, she found the perfect investment property—a duplex in a growing neighborhood that could generate steady rental income.

The purchase price of the property was $300,000, and Samantha secured a mortgage for most of it. However, to qualify for the best loan terms and avoid expensive private mortgage insurance (PMI), she needed to put down at least 20%—a total of $60,000.

She had $40,000 saved, but she was $20,000 short to complete the down payment and cover closing costs. She considered taking out a personal loan or using her credit cards, but the high interest rates could cut into her investment returns and reduce the profitability of the rental property.

Her uncle, Richard, a retired investor, saw the potential in her plan and wanted to help. However, instead of gifting the money or investing as a partner, he preferred to lend her the money in a structured, fair way that ensured accountability while supporting her goals.

Loan Request & Agreement

Using Pari, Samantha submitted a $20,000 loan request to Richard with a 5-year repayment plan at 4% interest, making the loan more affordable than any traditional financing option.

Richard reviewed the request and suggested adjustments to make it even more investment-friendly:

• A 7-year repayment period to lower Samantha’s monthly payments.

• A revenue-based repayment option, allowing her to make higher payments when rental income was strong and lower payments in months with vacancies or unexpected expenses.

• No penalties for early repayment.

Once they finalized the agreement, they digitally signed the loan contract, and Samantha received the funds instantly, allowing her to close on the duplex without financial stress.

Repayment & Outcome

With the down payment secured, Samantha closed on the property and quickly rented out both units, generating steady monthly income. The flexible repayment plan allowed her to adjust payments based on rental cash flow, ensuring she never struggled to make repayments.

After two years, the property appreciated in value by 20%, and Samantha was able to refinance her mortgage at an even lower interest rate. With the extra cash flow, she decided to pay off the loan early. By year four—three years ahead of schedule—she had fully repaid Richard.

As a thank-you, she invited Richard to a celebratory dinner in her new investment property, showing him how his support helped her achieve financial independence.

Key Takeaways for Users

✅ Smart Real Estate Financing: Samantha avoided high-interest loans while securing an investment property.
✅ Flexible Repayment Terms: Richard structured the loan to match rental income fluctuations.
✅ Transparent Loan Tracking: The app handled repayments automatically, eliminating any financial tension.
✅ Early Payoff Flexibility: Samantha repaid the loan three years ahead of schedule.

Final Thoughts

Samantha and Richard’s story shows how structured family loans can provide financial support for investments while ensuring fairness and accountability. Thanks to Pari, they were able to set up a clear, secure, and stress-free loan agreement that worked for both of them.

Looking to invest in real estate? Or want to help a family member grow their financial future? Our platform makes lending and borrowing between family and friends secure, simple, and fair.

Download the app — Get started today!