Investing with a partner

[Zane Landeck]

I have 30k in savings and poor W2 meaning its hard for me to pull a loan even though I have enough for a down payment. My friend is interested in investing with me on a house. He has good W2 income. Any strategies we should pursue? Any help would be nice!

[Alecia Loveless]

@Zane Landeck Always have a formal partnership agreement drawn up, if you need to negotiate the cost up front with the lawyer instead of by the hour.

Make SURE you have an exit strategy or a couple exit strategies spelled out in the agreement.

I’ve had two partnerships not work out. Neither had partnership agreements and both would have saved a lot of time, money, effort, and grief if they had had an exit strategy. One ended in a court case and the end of a friendship that caused others to take sides and destroyed several other friendships as well it also ended with a business going bankrupt and costing $200,000 for the “winning” partner which was me.