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Advice for Investment Property with Friends

Hey everyone

I’m looking for some advice about buying investment properties with friends. Two of my close friends and I are thinking of creating an LLC to buy an investment property. We’ve known each other for 15+ years, and we’re all pretty comfortable financially, so I’m confident in our relationship and trust levels. Each of us has around $25k that we’re willing to invest, and we’re planning on pooling our funds to buy our first rental property.

A few details about our plan: • We each already own our own primary residences, so this would be purely an investment venture. • Our goal is to buy our first property together, rent it out, and eventually refinance to free up funds and move on to the next one and so on.

I’m looking for tips on: 1. Setting up the LLC: What are some key things we should include in our operating agreement to protect everyone’s interests and keep things smooth? Anything you wish you’d added when you set yours up? 2. Financing Strategy: Are there particular loan structures that have worked well for anyone in a similar setup? Tips on maximizing our capital for that “buy, refinance, repeat” strategy? 3. Managing the Properties: Any recommendations for property management or how to divide roles among partners? (None of us are looking to go completely hands-off, but we also don’t want it to consume our time.)

Thanks in advance! I know real estate partnerships can be tricky, but I feel good about this team and would love to hear from anyone who’s made a similar partnership work.

Looking forward to your insights!

submitted by /u/AfraidChocolate370
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source https://www.reddit.com/r/RealEstate/comments/1gnvoja/advice_for_investment_property_with_friends/
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