Going Into business With family,friends or lover?

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Going Into business With family,friends or lover?

Cameron Riley
Rental Property Investor 路 Phila, PA 路 Member since 2018 路 554 posts 路 118 votes

- Are you a solo venture?

- Have you gone into partnerships with family and friends?

- How did it work out?

- Thanks guys! For always responding with truth and integrity!!!!

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Mike Dymski
Investor 路 Greenville, SC 路 Member since 2016 路 5k+ posts 路 13k+ votes
7y
Originally posted by @Thomas S.:

Being married means I am in business with family. It can be difficult due to the injection at times of emotions.

There is no room in marriage for emotion.  You need to run it like a business.

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  • John UnderwoodPro Member
    Investor 路 Greer, SC 路 Member since 2014 路 13k+ posts 路 17k+ votes
    7y

    I have done everything solo. Best way to ruin a friendship is go into business with them.

    2Reply
  • Thomas S.
    Member since 2016 路 13k+ posts 路 12k+ votes
    7y

    Being married means I am in business with family. It can be difficult due to the injection at times of emotions. Something which I have a very strong personal aversion to in making business decisions. If I could operate my business separate from family it would be preferred but not realistic. Being in business with family has a negative impact on both my business and my personal relationship.

    I would prefer to be in business solo but do not have that option without a major financial loss at this point in time. A time machine would see an very different outcome.

    1Reply
  • Bob B.
    Investor 路 Jasper GA 路 Member since 2015 路 1k+ posts 路 1k+ votes
    7y

    @Thomas

    @Thomas S. You crack me up sometimes.

    Have a Good Easter

    2Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker 路 Cody, WY 路 Member since 2010 路 28k+ posts 路 41k+ votes
    7y

    I don't recommend mixing business with family or friends. It's not a guarantee of problems but there is a very, very high risk of ruining relationships and it's not worth it.

    Mixing business with a lover is probably the dumbest of the three. Until you are both willing to commit to marriage, what makes you think you'll commit to any other contractual obligation?

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    4Reply
  • Nick C.
    Investor 路 Tampa, FL 路 Member since 2011 路 2k+ posts 路 3k+ votes
    7y

    I don't think there's a clear answer to this question, it's going to depend largely on the individuals involved. My personal example is I work almost exclusively with friends and family, and it works well, but that may or may not work for your situation. 

    For starters you and the individuals you want to get involved with need to have similar work ethic, be trustworthy, and have the same short and long term goals. 

    Disclaimer: This advice does not pertain to lovers- that's an emphatic NO WAY. 

    2Reply
  • Cameron Riley
    OP
    Rental Property Investor 路 Phila, PA 路 Member since 2018 路 554 posts 路 118 votes
    7y

    @John Underwood

    Friendships should definitely

    Have boundaries! Although. Many of my pals want me to teach them the beginner ropes to real estate... not sure if I will be committing to them yet or not

    0Reply
  • Cameron Riley
    OP
    Rental Property Investor 路 Phila, PA 路 Member since 2018 路 554 posts 路 118 votes
    7y

    @Thomas S.

    Haha! We all need a time machine! Where can we buy those at?

    But yeah, sometimes I could see the family as being beneficial. They are your loved ones

    0Reply
  • Cameron Riley
    OP
    Rental Property Investor 路 Phila, PA 路 Member since 2018 路 554 posts 路 118 votes
    7y

    @Nathan G.

    True! If you can do it yourself, I guess you should!!!

    1Reply
  • Doug Pintarch
    Rental Property Investor 路 Harrisburg, PA 路 Member since 2018 路 369 posts 路 406 votes
    7y

    My wife and I have our rental property with another couple.  We have known them for 27 years and we have been talking about buying a beach house for a few years. Even with knowing them so well for so long, we had many frank, blunt conversations about household finances and our roles in the purchase process and then rental. We each (Couple) laid everything out and went through it all with each other and a separate financial professional that we paid to go over everything and tell us if it would work on both sides. This was back in Nov of 2017 when we made that purchase, and it has gone very, very well to date.  We are now in the process of saving for number 2, if everything comes together that could happen this fall.

    It's working for us.

    0Reply
  • Mike Dymski
    Investor 路 Greenville, SC 路 Member since 2016 路 5k+ posts 路 13k+ votes
    7y
    Originally posted by @Thomas S.:

    Being married means I am in business with family. It can be difficult due to the injection at times of emotions.

    There is no room in marriage for emotion.  You need to run it like a business.

    4Reply
  • Michael Ablan
    Real Estate Broker 路 Watertown, NY 路 Member since 2016 路 1k+ posts 路 1k+ votes
    7y

    @Cameron Riley -  I'm currently in business with a friend, and have involved my family in the business.

    Pros

    1.) I know them more intimately  then I can know anyone.  I know their strengths and weaknesses.  There's no surprises.

    2.) We all go through hell for one another.  If someone needs help, the others are there to provide it.  There's no "I'm sorry, but I don't work on the weekend" crap.

    3.) It makes me feel good knowing that this business helps provide a good living to people I genuinely care for and love.

    4.)  I can trust these people with a million dollars and know they wouldn't steal a dime.  Vice versa.

    Cons

    1.)  Too much conversation revolves around work.  Times of relaxation can turn stressful quickly.

    2.) The line that separates boss and employee gets crossed far too often.  This can cause situations to become hostile quickly

    3.) Having to follow through with executive decisions is much harder due to the deep seeded personal relationships with these people.  You have to do what's best for the company, but is it worth the damage it's going to cause to the relationship?

    All in all, I don't think I'd recommend it. The pros outweigh the cons for me (most days), but it's always a struggle.

    0Reply
  • Cameron Riley
    OP
    Rental Property Investor 路 Phila, PA 路 Member since 2018 路 554 posts 路 118 votes
    7y

    @Mike Dymski

    LOL!

    1Reply
  • Thomas S.
    Member since 2016 路 13k+ posts 路 12k+ votes
    7y

    Never with a lover, I don't even know what that is. With friends only with a legal business partnership contract/agreement in place first. I don't recommend investors get married until after they are successful and then only with a prenuptial agreement. Preferably a trophy spouse that has no interest in business.

    3Reply
  • Cameron Riley
    OP
    Rental Property Investor 路 Phila, PA 路 Member since 2018 路 554 posts 路 118 votes
    7y

    @Thomas S.

    Hahahahahah! Love ya Thomas! 馃槀馃槀馃槀

    0Reply
  • Dennis M.
    Rental Property Investor 路 Erie, PA 路 Member since 2018 路 6k+ posts 路 9k+ votes
    7y
    Originally posted by @Thomas S.:

    Never with a lover, I don't even know what that is. With friends only with a legal business partnership contract/agreement in place first. I don't recommend investors get married until after they are successful and then only with a prenuptial agreement. Preferably a trophy spouse that has no interest in business.

     Ahhh , there鈥檚 my problem . I got the trophy wife first ...then decided on getting rich . I put the buggy in front of the horse ! 

    3Reply
  • Matt M.
    Specialist 路 Easton, PA 路 Member since 2018 路 1k+ posts 路 2k+ votes
    7y

    @Cameron Riley

    I would never do a partnership with anyone other than my wife.

    Wife handles the $, I do everything else. Closed on a new buy and hold 2 weeks ago, she hasn鈥檛 even seen it yet.

    1Reply
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