I think that comes down to...How your friends and family are and how you are as an agent. I have helped several...more than 5, family and friends with Real Estate and Mortgage loans...and so far, knock on wood, there have been no problems. Besides how can someone let money ruin a friendship? True you will make less when working with friends and family... I know I have, BUT if you are doing Real Estate for money then you are in the wrong business, go be a doctor. Yes, working with family or friends is a lot more stressful and maybe that is why some agents don't want to step up to the plate. But if you are honest, acknowledge problems as soon as they arise, then everything can be worked out. If there is a problem that comes up that neither buyer or seller wants to pay for, then pay it, solve the problem and move on. I see WAY to many crooked, sneaky.. will tell you anything just to have you buy the house sales people out there calling themselves agents.. and even worse calling themselves Realtors, to let someone I know get caught up with them.
I think working with a family member or a friend is a good idea...If you can handle the stress...and if you can't...then send them to me, I'll work with them.