First Investment Property with Two Partners

[Matthew Detar]

Hello!

I am a 21 year old college student aspiring to be a real estate investor. Some of my friends have also expressed interest in this objective. My friends and I have seriously considered investing in our first property together to mitigate risk, pool funds,  and learn together. 

I have multiple questions for some of you experienced investors. 

Would you guys recommend this 3-way partnership for our first property?

If we do buy together, what is the best method for acquiring a loan? Would one person put it in their name and the other partners just give him money under the table for the downpayment?

We are planning on a property that requires some rehabbing, then potentially refinancing it and making it a rental. We intend to use this opportunity to do some of the flipping ourselves such as tiling, installing cupboards, and other things that don't require professionals. My question is, do you recommend we try to do some of the flipping ourselves via the help of youtube and other resources, or should we hire professionals for everything?

Any knowledge is treasured and appreciated, thank you!

[Revis Isbell]

From my experience it is not a good idea to partner with close friends and family. It can cause resentment and ultimately ruin relationships. You will have different ideas of workload and how to go about getting things accomplished. You may think it won't happen to you but it can and most likely will. This just happened to me recently.

I am not saying that is the case here but for me it was. I would say that if you do go through with it make sure that you are all on the same page and stay on the same page. Have weekly meetings and make sure you lay everything out there from the beginning as to what you expect and what they should expect. Communication is an absolute must.

Honestly I would say to get established first with a few properties and then circle back and talk about doing something together.