Looking into doing RE investment with 2 - 3 people

Newtown, CT · Member since 2013 · 2 posts · 0 votes

I am looking into investing into some real estate with 2 - 3 people and as I start to gather and read the ton of great info on this site I am making notes from some of the post I am reading. I am going to suggest to the group that as I do research and gather more info that we do weekly / biweekly meetings to start to hash out things that can come up down the road ect.. Someone wants out can they force a sale .. Someone does work on property how is that person compensated ...

I was wondering if anyone knows of or made a type of punch list of ideas to go over?

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Jerry W.Pro Member

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Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes

13y

Kris Castagna I have been in several investment groups. Some were good some were not. The best one I had was me and my wife and another guy and his wife. That one lasted nearly 15 years and only ended because the guy decided to retire. I dont care how smart they are or how talented they are if you cannot look them in the eyes and feel you can trust them with your checkbook they are not for you. I think its the quality of who you group with not the agreement. If things go bad the agreement is HUGE, but how things go is definitely the quality of who is in it. Do a few little deals before any big ones to see how it works.

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Joel OwensBusiness Member
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Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
13y
Kris,

Do you know these people well?? When forming partnerships it's helpful to have existing relationships going in.

What type of property are you trying to buy??

How much money is the buy in from each partner??

Do they want to be active or passive??

Definitely use an attorney to help with the formation of the documents.
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Savannah Leigh
Real Estate Investor · scranton, PA · Member since 2010 · 174 posts · 14 votes
13y
Businesses if not formed right are nothing but problems down the road. ANY lack of clarity will change/end friendships.

NEVER do a 50/50. Need a way to break ties

Decisions are in whose hands? Emergencies decided by whom? Please don't say concensus.

Be careful!
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Jerry W.Pro Member
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Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
13y
Kris Castagna I have been in several investment groups. Some were good some were not. The best one I had was me and my wife and another guy and his wife. That one lasted nearly 15 years and only ended because the guy decided to retire. I dont care how smart they are or how talented they are if you cannot look them in the eyes and feel you can trust them with your checkbook they are not for you. I think its the quality of who you group with not the agreement. If things go bad the agreement is HUGE, but how things go is definitely the quality of who is in it. Do a few little deals before any big ones to see how it works.
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Kris Castagna
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Newtown, CT · Member since 2013 · 2 posts · 0 votes
13y
I have no questions about trusting the people I am thinking of investing with as I have known them all 10+ years and we are very good friends. My concerns are from not having a clear business plan in place to deal with problems that might come up along the way. I really would like to try to cover most of the different scenarios that we might encounter in the future and have a plan for them to make sure we can stay on track with what are end goals are.

I do agree with the need to have someone who is in charge of the final decisions and that will be me which we have all talked about and agreed upon.

The problems come from the questions we don't ask so that is why I was asking if anyone had made a list of things to go over so we have a plan for them before they happen.
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