Buying an Investment Property With Partners

Prices on multifamily buildings in Southern Maine can make a first purchase feel out of reach. Partnering — one person brings cash, another brings credit or time — is a common way in. It works best when everyone agrees on the hard questions up front.

Decide who does what

Who finds tenants, answers the 2 a.m. call, and keeps the books? Partners who put in work often expect a bigger share or a fee. Write it down.

Plan the exit on day one

What happens if one partner wants out, gets divorced, or passes away? A written operating agreement should cover buyouts, how the property gets valued, and who decides when to sell.

Hold title the right way

Many partners buy through an LLC, which can change your loan options and insurance. Ask an attorney and your lender before you sign a purchase agreement, not after.

Run the numbers for everyone

Use the cash flow calculator on our homepage and split the result by each partner's share. If the deal only works for one of you, it isn't a good partnership deal.