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.
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.
Awesome responses thank you both.