Listen "Navigating property investments with friends and family"
Episode Synopsis
In this episode of The Property Nerds, co-hosts Arjun Paliwal, founder and CEO of InvestorKit, and Jack Fouracre, partnership manager at Fouracre Financial, discuss the growing trend of joint property investment with friends or family.
The duo begins by discussing the complexities and potential pitfalls of joint investment, starting with the financial implications, as co-owners often face challenges with borrowing capacity as lenders typically consider the total debt but only half of the rental income.
Arjun and Jack recommend precise strategic planning, trust structures, and a well-defined exit strategy to avoid future conflicts.
Similarly, business owners may consider using a bucket company to reduce personal tax liabilities while investing in property.
Ultimately, the duo stresses the importance of aligning goals and obtaining professional guidance to mitigate risks and make joint property investment successful.
The duo begins by discussing the complexities and potential pitfalls of joint investment, starting with the financial implications, as co-owners often face challenges with borrowing capacity as lenders typically consider the total debt but only half of the rental income.
Arjun and Jack recommend precise strategic planning, trust structures, and a well-defined exit strategy to avoid future conflicts.
Similarly, business owners may consider using a bucket company to reduce personal tax liabilities while investing in property.
Ultimately, the duo stresses the importance of aligning goals and obtaining professional guidance to mitigate risks and make joint property investment successful.
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