Going 3 ways on 1 property

3 Replies

I am new to REI and looking for a place to live. Me and 2 other beginner investors are thinking of buying a property in which we all live in, rehab over time, then sell for a profit. We think this ought to be a decent way to start our investing careers. We mesh well and are all generally not stupid. However I think only 1 of us can qualify for a loan. We all plan on putting in equal parts for a down payment, and we all understand that whatever we decide needs to be in writing under contract of some sort. Is this a good idea? Does anyone have any kind of experience with this sort of thing? Any thoughts or suggestions are very welcome.
Thanks for reading!
Happy new year!

I would not advise it, just because of all of the potential issues that can arise. It is hard enough working with partners and you want to live with them.

I have done something like this in the past and it went well but there were some many times it could have gone sideways.

@Chris Pace

Adam is correct, it's one of the best ways to ruin a friendship.

At the very least, pony up a couple of hundred bucks and have a lawyer draw up a formal partnership agreement which covers exit strategies for one (or more) partners and has a conflict resolution process builtin.