All Forum Posts by: David Vaitenas

@Jonathan Greene makes valid points here.  Your reply is in a pretty rough tone leading me to think it is not smart to have her brought in.  He was just giving you his advice and trying to compare your relationship to others here as a defense is a sign of fragility.  I would highly take his advice on a lot of this.  

Another question, why is having your girlfriend pay you rent still fine, but after 6 years and no marriage it is an absolute NO on buying together? I’m a little lost on this as you could bring her in equity wise like the parents or on similar terms.

You have been together for six years, are not married, and think buying together is foolish? I think that explains your relationship right there. What I should have said, it's a dumb move for her to rent from you. Your response sounds like someone who can't take advice and only wants a pat on the back. This plan you have is flawed in every single way and will end in disaster. I would listen instead of overreacting. What other reason would I have to post what I did unless it was to help you?

Investing with others can accelerate growth, but you need to really know what you are doing. Screw it up and you could lose the investment and your relationships.

You need a contract that clearly spells out what each person is investing and what they will get out of it. Then you need to list rights and responsibilities. Finally, think about how each investor can exit, if they decide to move on.

Some examples:

1. You invest 10% and your parents invest 10%. Do you both get 50% of the monthly cash flow? 50% of any gains realized when you sell? If the roof needs to be replaced, do you both pay 50% of the cost? What if your partner doesn't have the money to put into the new roof? If you pay $25,000 to replace the roof, do you start collecting 66% of the cash flow because you have now invested 66% of the money into the property?

2. Who makes decisions? Who markets the property, sets the rent rate, signs the lease, authorizes maintenance, etc? Too many chefs spoil the broth! You want a clear delineation of responsibilities and authority.

3. What if a partner wants out? Your parents decide they need their cash back for medical reasons. Can they sell their share to someone else, or do they have to sell it to you? What if you can't afford to buy them out?

These are just a few of the questions. I recommend you spend some time researching this topic. Without a clear agreement, there is a strong risk of things going south, particularly when you mix family dynamics.

Everything about this is a disaster. Do not involve family in your first investment and do not even consider building in Fort Lauderdale. Do you know how much it would cost to find land and build a 2-4 family there?

If you don't have experience, you don't want to take your family's money and put it at risk. Do something small on your own first, figure out what you are doing, and bring them in later when there are metrics to prove your concept.

Also, side note on this - "will be bringing my girlfriend in who will be paying me rent in this home as I plan on living in one of the units and renting out the other/others (she will have no ownership and understands this she's not what my question is about.)" - this will ruin that relationship in seconds. You are making your girlfriend a renter and not a co-inhabitant, it will end badly.