Me and two to three other buddies are considering investing in some properties together. We each own one home of our own and want to invest in more but we each only have about 10k of disposable income right now. We figured we could pitch our money into an LLC and invest together with about 40-60k to make a larger impact.
Two questions:
1. Would I be better off taking my 10-15k and investing in something on my own?
2. If we decide to invest together, what are the pros and cons of investing as an LLC vs just investing together?
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
6y
Money and friends can be a combustible relationship. Tread carefully. Be sure to speak with an attorney and draft an operating agreement outlining everyone's roles and who's entitled to what.
1. If you can get started on your own and have the money and credit to do so, I'd probably go that route. Financing is much better as an individual than as an LLC.
2. A few pros are more money to start with, lessens risk, can tackle a bigger project. Big con is too many cooks in the kitchen and decisions can be hard to reach.