Updated over 4 years ago on . Most recent reply
Partnering with a friend on our first property
I’m just getting started in real estate and will be looking for my first property soon. Particularly a duplex, triplex or fourplex. My friend and I share the same goal in wanting to house hack, and we’ve discussed partnering on our first deal. This way, we can get started sooner by putting our money together and also assume less risk by sharing the risk together. We’ve discussed using an attorney to write up an agreement/contract for us. Can anyone share their thoughts on this? How do you go about finding an attorney? What are the pros and cons of this kind of partnership?
Most Popular Reply
Definitely reach out to an attorney to get something in writing beforehand. Start with your real estate attorney and branch out from their network. Your tax advisor may also have suggestions.
Pros:
- Reduce risk and cash in the deal
- Partners can be motivating and a great way to bounce ideas off of each other
- More buying power
Cons:
- Need to determine who will handle what tasks
- You won't have full control of your situation because you'll have a partner
- Added costs in legal docs