Buy a House with a Friend: Real Estate Partnerships Explained

Buy a House with a Friend: Real Estate Partnerships Explained

I’ve seen firsthand how powerful real estate partnerships can be. It’s how I bought my first home and have continued to buy with friends throughout my real estate journey. In fact, I have done this 10 times now! Whether you're considering a first home, vacation home, or investment property, buying with a friend can open up possibilities you might not achieve alone.

When I talk about real estate partnerships, I often hear questions like:

• "Where do I find someone to partner with?"
• "How do I protect myself and my money?"
• "Isn’t it less risky to buy with a romantic partner?"

Let’s tackle these questions and show why buying a house with a friend might be one of the best decisions you make.

Where Do I Find Someone to Partner With?

Finding the right person to partner with might feel overwhelming, but there are plenty of ways to meet someone who shares your vision. Start by thinking about your own circle of friends, family, or colleagues. Have open and honest conversations about your goals and see if anyone expresses interest. You might be surprised by who’s eager to explore the idea!

If you’re still searching, our online community is the perfect place to connect with like-minded women interested in real estate partnerships. Through our events, resources, and networking opportunities, you can meet potential partners who align with your goals and values. Many of our members have found their real estate partners through our community, and we’d love to help you do the same!

How Do I Protect Myself and My Money?

Protecting yourself and your investment is essential in any partnership. That’s where an operating agreement comes in. This document outlines the terms and responsibilities of your partnership, including:

• Ownership percentages
• Initial cash contributions
• Exit strategies
• Decision-making processes
• Property management roles

An operating agreement ensures everyone is on the same page and provides clarity if challenges arise. It’s like a prenup for your partnership—a safety net that protects both your relationship and your finances. To get started, consult a lawyer or use a service like bizee.com to structure your agreement professionally.

Isn’t It Less Risky to Buy with a Romantic Partner?

While many people traditionally buy homes with romantic partners, it’s not necessarily less risky. In fact, buying with a friend can sometimes offer more stability. Romantic relationships may come with added emotional layers, while a real estate partnership with a friend is often focused purely on shared goals and mutual benefits.

What’s most important is finding a partner—romantic or not—who aligns with your values, communicates openly, and is willing to work collaboratively. By using tools like an operating agreement and maintaining regular check-ins, you can minimize risks and set yourself up for success in any partnership.

Why Use a Real Estate Partnership?

Real estate partnerships can be transformative. When I was 26, I partnered with my sister to buy a home in Austin. At the time, I had just started working for myself and didn’t have the stable W-2 income lenders love. My sister brought the W-2 income, while I contributed my real estate knowledge and time to hunt for the right property. Together, we created an unstoppable team, leveraging each other’s strengths. It worked so well for us that, a couple of short years later, we even went on to buy a beach house together!

Here’s how partnering can benefit you:

• Shared Costs: Splitting the financial load makes homeownership more accessible. For example, a $450K home might require $22,500 in upfront costs (down payment and closing costs). With a partner, you’d each only need $11,250.
• Shared Responsibilities: From touring homes to tackling renovations, you can divide the workload based on your strengths. Maybe you love design and your partner thrives on spreadsheets—perfect!
• Mutual Support: In my opinion, having someone to talk with when making big decisions is a game changer. Plus, having a partner can keep you motivated and on track. It will be super important to schedule and hold recurring meetings to stay on the same page. In our community membership, we actually have an accountability program that will teach you how to do this!

What Makes a Good Real Estate Partner?

As exciting as partnering can be, choosing the right person is critical. Think about someone trustworthy, communicative, and aligned with your vision. Here are some key traits to look for:

• Time, Talent, Cash, and Buying Power: Do they complement what you bring to the table?
• Shared Values and Goals: Are they committed to the same outcomes as you?
• Reliability: Can you count on them to follow through on decisions?

Finding the right partner is a little like dating—trust your gut and don’t settle for someone who doesn’t align with your goals. If you’re still searching, join our online community where you can connect with like-minded women. Many of our members have met their perfect real estate partner through our events and resources. Let us help you find your partner too!

Next Steps

Ready to take the plunge? Here’s how to get started:

1. Start the Conversation: Talk to someone you trust and share your idea. Don’t assume they’ll say no—you might be surprised who’s interested! Use clear, honest communication to explore their interest and potential contributions.
2. Join Our Community: Our online membership is designed to help you meet like-minded women who are interested in partnering on real estate deals. Through our events and resources, you can connect with someone who shares your vision and goals. Members also gain access to workshops, an accountability program, and tools to set up successful partnerships.
3. Learn Together: Not sure where to begin? Check out our free resources, including a mini-course that breaks down the home-buying process step-by-step. You can also listen to our podcast where I interview women in our community making big real estate moves. Watch it with a potential partner to kick off your journey together.

Join the Open House Education Membership

Want to learn more about real estate partnerships and connect with a supportive community? Our membership offers:

• Exclusive access to events and workshops
• An accountability program to help you stay on track
• Resources on buying with friends and creative strategies
• A network of like-minded women ready to collaborate

Click here to join today or find your next real estate partner.