Biggest difficulties that come with working with a partner?

Question

My business partner and I are interested in househacking a multifamily together. Everything seems to be going great so far. We are working with an excellent agent and we are preapproved for a loan.

However, I know that challenges will arise. Problems will come up no matter what and it is inevitable that we will disagree on some things moving forward. I am curious to know what some of the biggest difficulties have been for other RE investors who have worked with partners. More importantly though, I would like to know how me and my business partner can avoid difficulties that come with partnerships.

Many many thanks!

Michael J Scanlon · Answer

Alignment of interests is pretty important. Just always talking things out and making sure you're of the same mindset moving forward. I've definitely had minor disputes over how we finance things and which direction go in rehabs but ultimately you have to compromise and make most decisions based on finance.

Nicholas Weckstein · Answer

I think difference in end game/vision is a big one. But as long as you guys have respect for one another and the morals needed to do business fairly with one another. you'll be fine.

I am concerned over the house hacking with a business parter ? sounds like double? triple? dipping to me. first they are your partner, then they also live with you? in the building? in the same unit? is this a friend or family member?

Ethan McRae · Answer

@Michael J Scanlon Many thanks