Upon a real estate investment involving friends or family, you need to plan out a lot of things. This can help you maintain your relationship as well as securing your investment. Find out more below!
Time changes situation, plan for the unexpected
Don’t get too stuck up with a good result. Think about the bad ones too. What if a partner of yours decided to leave out the partnership due to financial issue? Always thinks of a plan B for an emergency. How will you manage the agreements on the partnership and investments if the situation calls for a sudden change?
Secure your real estate investment by maintaining communication with your friends or family
It’s not only meeting up to catch up with life. Talk about real estate investment with your friends or family. Scheduling a separate time to talk about your investment. Address problems that you need to solve as soon as possible. Once every three months is a good routine but suit it with your schedule and urgency.
Prepare an exit plan
A partnership is not about starting it, it is also about ending it. Have yourself an exit plan and the terms and conditions related to ending the partners. This plan is especially important when it comes to rental property.
Investor Junkie suggests three main questions that you need to think of. First, how long will the partnership go for? Second, what will you do when a person who wants to leave from the partnership, or sell the property early? Last, what will you do when your real estate hit big and other people ask to join?
In an investment that involves partnership, choosing a strategy that makes sense is a must. Try not to overcomplicate the deal, it could complicate your partnership too.
Read also: Things to Do When You Invest in Real Estate With Friends or Family (Part 1)
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