If you’re buying a rental property or joining up with a team of investors to buy an apartment building, you’ll need funds to a down payment and your closing costs. Lenders really don’t care where you get needed funds as long as the funds belong togift fund transfer you and are not borrowed from a third party or a cash advance from a credit card for instance.

Another common source of funds, and it’s typically interest-rate friendly, comes in the form of a gift from a relative. It doesn’t have to be much of a gift, but when leveraging to buy investment property every little bit helps. If you anticipate asking for and receiving a cash gift, here are a few things you can expect.

The first is scrutiny. Are the gift funds really a loan in disguise? If your gift comprises the majority of the funds needed, then the bank may not accept your relative’s gratuity. If the gift passes that initial test, then you move forward.

The individual giving the gift must sign a form called a “gift affidavit” which plainly states that the benevolent relative is in fact giving the money as a gift and doesn’t expect it to be paid back. The affidavit will identify the donor and ask for a copy of a valid photo I.D. which will be matched up with the account containing the funds for the transfer.

When reviewing the account, the bank determines if the donor has the ability to give the gift. First, is there enough money in the account and if there is, will the donation empty, or nearly so, the account altogether? Again, the lender has to make a judgment call and if someone is emptying out an account in a relatively substantial amount, regardless of any affidavit, the lender has the authority to prohibit the gift funds.

If all these tests are met, the most effective way to transfer the gift funds is by a wire to the settlement agent. If not, then a paper trail of the transfer and receipt of the funds must be documented.