Has anyone entered into agreements with friends to go in on a multi-unit purchase to rent out the units as a revenue stream and sell it later for a profit? Looking for anecdotes on successes or failures or fallouts.

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Haven't done this myself, but make sure you draw up a legal contradict that clearly outlines how costs and profits and responsibilities will be split

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I know people who have but I do it on my own to avoid headaches related to how management tasks are apportioned and how decisions to sell are made

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Closest I’ve come is investing 1% of my assets into the startup of a guy from college whom I haven’t seen in more than a decade. Another guy also invested. It’s a speculative investment, I know I could lose it, but it won’t move the needle on my portfolio. I hope he succeeds, don’t know if he will, and am not stressing when I see him on Facebook relaxing and vacationing when he could be burning the midnight candle to produce cash and appreciation. Not the same, but gives some perspective on investing with friends and acquaintances.

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Yes. DOCUMENT EVERYTHING.

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This is scary

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I know a couple of situations who where it worked. Best buds since elementary school type situation. Not saying I recommend it, but I could see why others might give it a go.

Not everyone makes enough money to get rental properties on their own. So if the opportunity presents itself (and you've done your due diligence), it might be the risk over doing nothing at all. Especially for your first endeavor. With at least one pro being you don't have to figure everything out on your own.

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I typically avoid mixing friendships with such large sums of money. But if you decide to do it, definitely pay for a lawyer so you can incorporate, document ownership, investments, contingencies and any other important things. Don't just wire somebody 300k with nothing signed, even if you shook hands and you trust them.

Yes absolutely. We’ll incorporate, have property managers, a lawyer, etc.

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