How to Start Investing in Property With Family or Friends
If you’re still thinking about investing in property with the help of a partner, keep the following tips in mind before you purchase your first investment property.
Find a Reliable Investment Partner
You may already have a suitable candidate in mind that you’d like to invest in real estate with. If not, this is the stage when you would try to find one.
Make sure that whoever you choose as your property partner is reliable and shares the same investment goals as yourself.
This is not the time to phone up your flakey friend or family member that’s always late!
Make Sure You’re Both in a Strong Financial Situation
To avoid any financial distress further down the line, you need to ensure that whoever you choose to invest with is in a healthy financial position.
You want to make sure that even after you both have money invested into your property portfolio, you’re still financially stable and will be able to cope if the real estate market takes a turn for the worse and your property investment was to suffer.
Create a Solid Legal Agreement
Real estate is a serious business commitment. You and your property partner will need to have a legal agreement written up by a solicitor before you begin.
Make sure this agreement is as detailed and specific as possible and covers the main components of buying and running an investment property.
Keep a Focus on Communication
Without communication between you and your real estate partner, your property investment venture is destined to fail.
Communication is crucial, and if you’re not constantly on the same page, you could run into trouble.
As investment partners, you need to keep communication consistent and discuss investment goals, business decisions, and general money matters clearly and frequently.
Invest in the Best Opportunities
Lastly, whether you’re buying a rental property on your own or investing in real estate with a partner, be sure to select investment opportunities that are actually going to generate significant rental income and returns from capital appreciation.
Look for real estate market hotspot properties and research average rental yields, tenant demand, and house price growth.
When working with other investors, this research process should take half the amount of time, and you could find your perfect property in no time.