All Forum Posts by: Spencer Downing

Thanks everyone for the comments lots of great stuff to think about I really appreciate it. I would agree with those that have cautioned me about investing with family and I totally agree it is not something I would normally pursue but that being said this is a great deal and they are not always easy to find and I feel will be a great semi low risk way for me to learn as well as teach my brother. I will definetely consult a lawyer to draft us an agreement that has in paper what a buy out will cost, what will happen if there is a death and possibly set up a 49/49/2 voting rights with the lawyer being able to swing vote in the event of a total disagreement. I think we will split up responsibilities with initially me doing rent collection, book keeping and other "administrative" duties while he takes care of calls and maintenance etc and sure we will end up finding a happy medium as far as work load goes and this will let us learn together. Worst case scenario this is a small enough deal that I can buy the whole thing out if needed and everyone can move on so hopefully things will work out. 

Hello I am looking to buy my first rental house and it will be with my Brother as it is his inlaws house and is getting a great deal on it. I am a little worried about investing with a family member especially as it will be me doing most of the work. Does anyone have any input or suggestions as ideas to make it successful? I would like to build an exit strategy before the investment to ensure we both are clear on the expectations of the property would be interested in some ideas that I should include in that as well would like to have something written down about how to end the deal if one party wants out and would love some suggestions on what that might look like. I am an avid investor but just looking to start in the real estate market when this deal came up, my brother is not much of an investor and has not researched anything with real estate but is excited about the opportunity that being said he is also not in the same financial position as myself with much free equity so different points in our life i guess is what worries me.

Thanks