Buying Homes With Friends Part 1: What Makes a Great Partnership?

Hey everyone, Co-Founder Kristina here. It's great to be back with season 6 of The Open House Podcast: Where Women Talk Real Estate.

If you've been following our Instagram updates, you know we're focusing on the theme of "Buying With Friends" throughout January and February. 

With that, I’m sharing some insights on the mindset piece and essential qualities needed to form an effective real estate partnership. Pair this info with season 6, episode 1 of our podcast, available on Spotify and Apple Podcast.

Mindset Shift: There's No One Right Way to Buy a House

Let's start with a simple truth - there's no one-size-fits-all guide to buying a house. 

We're encouraging you to approach this journey with an open mind. Buying with friends or family isn't just a practical solution: It's a chance to unite each other's unique experiences, tap into financial advantages, and better your lives together.

The Real Estate Landscape: Challenges and Opportunities in Austin, Texas

Here in Austin, the real estate market is presenting challenges with steady home prices, interest rates, and growing competition. 

Apart from the money-related benefits, like making extra income from renting, living together becomes a good choice, reducing each person's money stress.

Preferred Partnership Split/Square: A Visual Exploration

You've likely heard us mention the "Preferred Partnership Split/Square." It's a visual that we created which breaks down the financial and emotional aspects of such an arrangement.

Partnerships demand shared enthusiasm, time, and experience. Here’s an example of two ladies with complimentary partnership qualities:

You see, there are quite a few advantages - shared down payments, monthly expenses, responsibilities, and emotional support. But, I won’t pretend it’s always smooth sailing…

Challenges of Buying With Friends: Real Talk

The ups and downs of partnerships are real. Are you prepared to hold space for uncomfortable conversations? How will you handle disagreements?

We've found that maintaining practical expectations and forming solid lines of communication makes all the difference.

In part two of this blog post series, I'll explain how to make a legal agreement to protect yourself - published next week, February 13th!

Example: Co-Founder Kristina's Story

To further illustrate, here’s one of my own partnership stories! 

I bought a house with my sister, and it wasn't without challenges. It took us four years from idea to closing in Seaside, Florida. Patience is crucial.

@openhouseaustin Buying a second home with my sister has been the best decision. It was something we had planned for 4 years and it was so worth it! #secondhome #investing #buyingwithfriends #30a #seasidefl ♬ Jazz that Christmas masterpiece 3 - Single Origin Music

What started out as a dream became a property we truly cherish - a place that generates both income and unforgettable memories. 

I want you to remember this while you search for a partner that’s right for you! How would owning this shared property impact your life for the better? Are you focused on increasing your equity or are you considering living together in some way?

Make This Idea Actionable: What Do You Bring to the Table?

Challenge yourself! What do you really bring to the table? Identify your preferred partnership qualities (1. Talent, 2. Cash, 3. Buying Power, and 4. Time) and write them down.

Refer back to this when it comes time to pitch yourself and future plans to peers.

What’s Next…

Read - Buying With Friends Part 2: Red Flags & Creating Operating Agreements 

I’ll provide more tips on legally protecting yourself in a partnership, identifying red flags, and the nitty-gritty details of ownership structures. That’s exciting stuff, but let’s say you want to learn more about the home-buying process in general…

Take Homeschool on YouTube - a completely free resource that’s already helping thousands of people learn about buying a house with an investor mindset. 

If you're looking for some one-on-one support, book an intro call with our agent team in Austin, Texas. 

I will say, we’re the only brokerage and real estate education company with a focus on buying with friends. And, Realtors Sydney, Jenn, and Alan have each purchased property through partnerships as well. You deserve to work with someone that really knows their stuff - that’s us. 🙂

Looking for a house outside of Austin? Fill out this form, and we’ll set you up with one of our like-minded Realtors in the city of your choice!

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