Buying a home with friends tip #1

[Tom Dickerson]

[Rob Chiang]

interesting...this is a strategy to rent or buy?

[Tom Dickerson]

For buying typically. 

[Bruce Woodruff]

#1 tip is - DON'T....

[Garrett Crosby]

I’ve done this one time. Biggest piece of advice - be upfront about everything. Sign an agreement that dictates everything ahead of time. My friend and I own a property in NC together, but we decided early on how we would manage ownership, property management, maintenance, etc. and put it all on paper. We had a real estate attorney look it over and then signed. 

Lot’s of “friends” will think that’s over the top, but it’s amazing how quickly friends turn into plaintiffs when money is involved. 

Good friends buy real estate together, better friends sign contracts and make it a business agreement. Don’t shoot yourself in the foot! :) 

[Tom Dickerson]

I love this! Great advice!

[Rob Chiang]

Quote from @Tom Dickerson:

For buying typically. 

 If this home is going to be used for airbnb with Owner friends taking some days it can get very messy quickly.  Proceed with caution.  If it's a straight rental that is a cleaner arrangement. 

[Nate Sanow]

If I ever partner again it will be with the end in mind starting in the beginning. The only person I want to hold onto something forever with is someone I’m married to. Besides that, goals change so much over the years and that’s okay. In my opinion short term partners to grow capital / wealth / equity are a-okay but long term is where things can break down. Just my thoughts 

[Drew Sygit]

As @Nate Sanow said, "start with the end in mind"!

This means your agreement should have serious provisions in it for:

1) Liquidating the property

2) Buying out a partner

[Victor S.]

#1 tip is *drum roll* : Don't do it!