Whether it’s a gift, a loan, or a crowdfunding situation, friends, family, and community members supporting your venture is a fabulous way to begin. However, money from family members and friends are not without their issues…Sometimes it’s hard to know if Aunt Suzie meant to give you the money as a loan or…maybe as a gift? This can spell legal trouble and ruined relationships if you get that part wrong. Read our Legal Aspects of Purchasing and Financing Farmland (32pgs.), which explores financing strategies for purchasing land for your farm operation. You will learn the ins and outs of gifts, grants, crowdfunding, loans, mortgages, seller financing, investors, and land contracts, and the various related legal issues to be aware of with each of the strategies.
When the money is a loan, it’s critical to memorialize this relationship, and we have just the tool for you: A promissory note! Our Promissory Note Toolbox (37pgs.) helps you outline and document the relationship with a checklist, a model promissory note, and a narrative story to help producers understand how to adapt the tools to their situation.