joint venture real estate

It can be a family activity…

Have you ever considered that property investing could be a family activity?

While this idea might be off-putting to some who would rather keep family and business separate, just think how much your kids could learn from you or what you could learn from other family members.

For instance, just say you had a son or daughter who was looking to buy their first home.

Perhaps you’d like to give them a ‘leg up’ without giving them a handout. Perhaps they are having trouble securing finance.

In this case, one option could be to use a joint venture. This type of arrangement allows you the flexibility to decide on the most suitable terms of an agreement that best fits your situation.

If the agreement is drawn up and structured properly and all family members involved communicate well, the risks of the agreement turning sour will be minimised.

It may be a good idea to nominate someone from outside the family who can step in if there is a disagreement.

This kind of agreement can also work well between siblings.

Whether or not you choose to actually go into real estate deals with family members, it can still be helpful to talk things through and share ideas, if you have other family members who share an interest in property.

My wife and I talked with our children about money and investing from a young age and they often remark that they are surprised by how much they have picked up over the years.

They may find it boring at the time but they will probably thank you later