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Trying to avoid crucial real estate mistakes as you invest in property?
Tell me if this sounds like you:
You’re a couple, and as a man and woman who love each other, you want to start investing together.
For one thing, there’s nothing as loving as building a portfolio from the ground up with your soul mate.
For another, it makes sense from a logistical perspective.
Married and cohabiting couples get different breaks and incentives which are money-spinners.
What could go wrong?
Plenty of couples end up arguing, disagreeing and even splitting up thanks to a property.
That’s when the brown stuff starts to hit the fan and you end up making some huge real estate mistakes.
Here’s how to avoid the scenario above.
Write Down Goals To Avoid Key Real Estate Mistakes
What are the reasons for wanting to invest?
Are you looking to make money for retirement or do you want to build a real estate empire?
Writing down your targets and aspirations is an essential part of investing as a couple because it brings both parties together.
Although you’re in a relationship, you might not understand their agenda until they say it out loud.
Being on the same page is crucial as it helps to avoid unnecessary tension which can lead to splits in the camp.
Before signing, couples should always explain what they want from the venture.
Begin With The End In Mind
Rev N You has an article which references some inspirational people whose quotes relate to property investment.
One of them is Stephen Covey who tells people to begin with the end in mind. What this means is that you need to discuss the red line and when you’re going to pull out should things turn sour.
One of the main factors in a deal going bad is one part of the partnership pumping money into a loser.
It’s hard not to resent that person when there isn’t enough cash to pay the bills. Draw a line in the sand and stick it religiously.
You trust your spouse and other half to the moon and back, so it’s no biggie when they can’t co-sign the contract.
You’re happy to do it and continue on your merry way. Then, divorce papers land on your desk and Hampton & Royce, L.C. is in your corner.
Take their advice and make sure the investment is 50-50 from the beginning to limit your liability.
With one name on the lease, that person will have to pay the mortgage without help from their partner.
At least if you split the property you get half.
Don’t Make The Same Real Estate Investment Again
An opportunity arose to sell the house for a profit and you did the right thing and took the money.
Congrats because some investors let the dollar signs impact their decisions. Now you have a choice – reinvest or put it in the bank.
Normally, pumping the money into another property is a good idea yet it depends on the circumstances. If the last property put a strain on your relationship, then it’s best not to do it again.
Aren’t some things as important if not more so than money?