Hello again.<\/p>\n
Liz here to share some success tips when investing and working with your spouse.\u00a0 Matt (my husband of almost nine years) and I have learned a lot about this topic from trial and error and would love to share some tips that way you can avoid some of the challenges we faced!<\/p>\n
As we might have shared in previous posts, Matt and I began investing together before we were even married. \u00a0When we first started dating we played Rich Dad\u2019s cash flow game together and read \u201cRich Dad Poor Dad.\u201d\u00a0 We were hooked immediately! We began going to real estate investing seminars as a couple and purchasing various educational packages.\u00a0\u00a0 We received a loan from my father to buy our first rental which was a duplex right outside of Philadelphia.\u00a0 Now, nine years later, we own over 100 units together and have been through a lot of \u201cups and downs.\u201d<\/p>\n
Whether we have worked full time or part time with one another, here are some suggestions on how to keep a healthy professional and personal relationship with your spouse.<\/p>\n
Before we purchased our first rental property, we discussed at length what our goals were and where we wanted to be in 1, 5 and 10 years.<\/p>\n
It is critical to be on the \u201csame page\u201d with short and long term goals.\u00a0 Although I am not part of every decision my husband makes in our real estate business, I am part of every strategic and planning discussion.\u00a0 We continue to goal set and meet regularly to evaluate our progress. We then discuss how to make \u201ccourse corrections.\u201d\u00a0 You and your spouse may have different ways to achieve your goals; however, it is incredibly important to be aligned together.\u00a0 The key is to do this as a team.<\/p>\n
The last thing any spouse wants is surprises especially when investing time, money and resources.\u00a0 This year we implemented something new \u2013 a monthly meeting to evaluate our progress towards our yearly and quarterly goals. This monthly \u201ccheck in\u201d meeting has helped tremendously with managing both of our expectations and keeping one another in the loop.<\/p>\n
In the midst of wedding planning and buying our home in 2005, Matt shared with me that he was thinking of quitting his job and jumping into Real Estate Investing \u201cfull time.\u201d<\/p>\n
Since we were aligned with our long term goals of financial independence, I was incredibly supportive of his decision.\u00a0 While he quit his job, I continued to work in my consulting role.\u00a0 Although we were very aligned with this major \u201crisk\u201d decision, there are other day to day \u201crisk\u201d decisions where we are not always aligned. \u00a0I tend to be more conservative and cautious where Matt is overall more of a \u201crisk taker.\u201d<\/p>\n
When we first started investing together, we would get very frustrated with the other person over this difference. However, over the years and working through a lot of deals together, we have learned to actually appreciate this difference within one another. It is not always easy to do this. \u00a0Once a decision has been made, we support each other and make it \u201cour\u201d decision.<\/p>\n
I recall one investment we made together that we both evaluated and felt like it was the right investment at the time.\u00a0 We ended up losing money in this deal, but I was really careful not to blame my husband in this situation since he took the lead. Every decision ends up being \u201cour\u201d decision especially when it comes to risk that way we don\u2019t fall into the trap of resenting one another.<\/p>\n
About four years after my husband started real estate investing full time, he asked me if I wanted to quit my job to help him grow the business.<\/p>\n
I also wanted to be my \u201cown boss\u201d and wanted to see us achieve our financial goals sooner than later, so I agreed to join him full time.\u00a0 We only worked \u201cfull time\u201d together for about a year and half and at the time it was an absolute disaster.\u00a0\u00a0 Neither our professional or personal relationship was growing \u2013 they were doing the opposite!<\/p>\n
One major reason for the lack of success in working full time together was not dividing up tasks that are based on our strengths and talents.\u00a0 For example, when I joined my husband full time, I basically performed the tasks that \u201cneeded to be done\u201d and the ones that Matt had no time or interest in performing.\u00a0 One of these tasks was being the \u201cbook-keeper\u201d and paying bills.<\/p>\n
While I performed this task, I became increasingly resentful. I was not a very good bookkeeper nor did I enjoy it. Two recipes for a disaster!!\u00a0\u00a0 I have begun working again with Matt in the business for about a year.\u00a0\u00a0 In order to this successfully this time around, I had to work on projects that focused on my strengths and that I truly enjoy.\u00a0 Tasks get done a lot quicker and more peaceful when you focus on what you are \u201cgood\u201d at vs. simply what \u201cneeds\u201d to get done.<\/p>\n
When you work with your spouse, it can be very hard to respect and even be aware of boundaries!<\/p>\n
Everything can get blurred together. \u00a0\u00a0When Matt and I began working full time together and working from home together, we allowed our real estate investing business to consume our life and just about every conversation we had.\u00a0 Whether it was car rides to see family or even going out to dinner \u2013 we used every opportunity to talk about real estate. This was not healthy for our business or our marriage.<\/p>\n