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tlogic

Property Investment with 3 other people

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Hi All, 

I'm 38 and will fast be approaching 40 :o, my god time has flown by in a flash. 

My main goal between now and 10 years is retire from my job as a Quantity Surveyor  through property investment. 

My Mum & dad have quite a few properties in London and  Peterborough,  they have done quite well out of it considering they have  around 20 in total now with virtually all of them paid off. Must say I'm  really  proud of them because as a Kid I remember we didn't really have much. 

Anyway, Two of my cousins wants to get into property investment  but are finding it difficult to raise the capital for a deposit to purchase a  first investment house in the midlands , so they asked me if I wanted to join in but I'm still undecided because I don't know if it's a good idea to invest with 3 other people (family as well)  or go at it alone. 

Has anyone else invested with 3 other people if so did you form a Limited company and how was the journey with buying with other  ? 

 

 

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Hi,

I'm invested with my brother via a limited company. We purchased our first property on the 6th Feb last year and are completing on our 3rd today!

It's very important to have the same goals and idea of what and why you're doing this otherwise things will go really wrong. 

My brother and I do have different opinions about things but we work it out. We also have complimentary skills which I think it important. He's good with manual work whereas I'm better suited to finance.

Brothers are closer than cousins so I would think twice about doing it with my cousin. I probably wouldn't. What are your cousins going to bring to the table if you did this?

HTH 

Jon

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On 2/3/2020 at 10:50 PM, tlogic said:

Hi All, 

I'm 38 and will fast be approaching 40 :o, my god time has flown by in a flash. 

My main goal between now and 10 years is retire from my job as a Quantity Surveyor  through property investment. 

My Mum & dad have quite a few properties in London and  Peterborough,  they have done quite well out of it considering they have  around 20 in total now with virtually all of them paid off. Must say I'm  really  proud of them because as a Kid I remember we didn't really have much. 

Anyway, Two of my cousins wants to get into property investment  but are finding it difficult to raise the capital for a deposit to purchase a  first investment house in the midlands , so they asked me if I wanted to join in but I'm still undecided because I don't know if it's a good idea to invest with 3 other people (family as well)  or go at it alone. 

Has anyone else invested with 3 other people if so did you form a Limited company and how was the journey with buying with other  ? 

 

 

I think it depends what is your goal. Is the house a BTL? How long you guys planning to keep? It worth speaking to a property specialist accountant on how to set it up should you wish to proceed as it is very expensive if it wasn't setup correctly (Not my personal experience but from reading and speaking to other people). Should you agree to JV with your cousins, would recommend to get a solicitors involve to draft agreement on the JV. Such as who has the final say, what are everyone's shares, who will be paying for repairs, etc and etc. I always feels money is very sensitive issues and it brings out the worst of a person sometimes... Good luck!

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Hi Jon & Brax,

Thank you  for your comments and tips much appreciated. 

Over the last few days I've  thought really hard about  going ahead with a  JV with my cousins ( they are not technically my cousins but from my wife side of the family),  my dad has made it quite clear to me that partnership doesn't really work as there are always disagreements when going into a partnership, and  advised me  that I should go it alone which I'm  seriously considering doing now as the numbers are not stacking up with a three way split. 

My dad did offer to guide me by sourcing the right properties for investment  but won't financially help as that would be too easy and plus I want to achieve something myself without any financial help from anyone (apart from the bank lol). 

The people I was considering going into a JV with have limited funds including limited knowledge in property and also  I don't think they are the type of people who will pick up  a paint brush whereas as I work in construction (behind the desk with a calculator lol  ) I don't mind  getting my hands dirty. 

Ideally I want to purchase a 3/4 bed house in Nottingham to convert  into a  HMO subject to planning etc.

Or alternatively buy a property which is in  need of renovation and sell it on, but this is where I might have to borrow funds on a short term basis such as a arranging  bridging loan if I was to buy  through an auction.

My plan for the next four week is; 

* I'll be driving up to Nottingham from London on Saturday to view a few properties, this will also give me  an opportunity to  get to know the area. 

* Make contact with a property specialist accountant and discuss what is the best way to setup my business. (any ideas how much they charge?)

* Make contact with a Broker 

* Read and Research on  a daily basis.

* Sign up to S.Leeds Crash course and become an academy member  :lol:

--------

I won't be rushing in but I will take my time unless a good deal comes up. 

Life too short and I can't wait to get my first investment property behind me. 

Sorry I've gone off on a tangent!

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1 hour ago, tlogic said:

* Sign up to S.Leeds Crash course and become an academy member  :lol:

I do hope this was a joke. Avoid at all costs.

You already have the absolute best people to guide you in this - your parents.

You say that they have 20 odd properties? 

There is no-one on here better placed than them to help you, just ask. (I know that can be hard).

And really, you have already answered your own question with regard to a JV with your "cousins".

You have doubts, your Dad has doubts........

Good luck though, whatever you decide.

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10 hours ago, tlogic said:

Hi Jon & Brax,

Thank you  for your comments and tips much appreciated. 

Over the last few days I've  thought really hard about  going ahead with a  JV with my cousins ( they are not technically my cousins but from my wife side of the family),  my dad has made it quite clear to me that partnership doesn't really work as there are always disagreements when going into a partnership, and  advised me  that I should go it alone which I'm  seriously considering doing now as the numbers are not stacking up with a three way split. 

My dad did offer to guide me by sourcing the right properties for investment  but won't financially help as that would be too easy and plus I want to achieve something myself without any financial help from anyone (apart from the bank lol). 

The people I was considering going into a JV with have limited funds including limited knowledge in property and also  I don't think they are the type of people who will pick up  a paint brush whereas as I work in construction (behind the desk with a calculator lol  ) I don't mind  getting my hands dirty. 

Ideally I want to purchase a 3/4 bed house in Nottingham to convert  into a  HMO subject to planning etc.

Or alternatively buy a property which is in  need of renovation and sell it on, but this is where I might have to borrow funds on a short term basis such as a arranging  bridging loan if I was to buy  through an auction.

My plan for the next four week is; 

* I'll be driving up to Nottingham from London on Saturday to view a few properties, this will also give me  an opportunity to  get to know the area. 

* Make contact with a property specialist accountant and discuss what is the best way to setup my business. (any ideas how much they charge?)

* Make contact with a Broker 

* Read and Research on  a daily basis.

* Sign up to S.Leeds Crash course and become an academy member  :lol:

--------

I won't be rushing in but I will take my time unless a good deal comes up. 

Life too short and I can't wait to get my first investment property behind me. 

Sorry I've gone off on a tangent!

Listen to your parents...they aren't always right but they have probably forgotten more then you/we know.

S. Leeds - ha ha

Broker - don't go for any old broker. I went for a recommendation first time and found a different one the 2nd time. There was a big change in cost. 2nd was better and cheaper (£500).

In terms of setting up a company...you can just do this yourself online on companies house. That's what I did. Cost about £15.

My thoughts on HMO...it might be too complex for your first investment, especially if you aren't living local which it doesn't sound like you are. I would advise going with a bog standard BTL first. But up to you obviously.

And yeah I think you've answered your own questions regarding the JV. 

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