A small group of 5 friends want to start investing in property as an investment “pod” or group. We’re all beginners and we’re hoping that by investing together, we can all bounce ideas off each other, share the learning curve and minimise our risk (although we realise it also minimises the reward). In your opinion, as someone much more experienced and skilled in property investing, can you shed some light on the best way to do things? Specifically;
1. How should we set this up from a legal and financial standpoint? Are there loans where you can have this many people involved? How would we structure a company to do this?
2. Would we be better of focusing on capital growth over the long term or renovate and sell or rental market (and within that, positive or negative geared?)
3. We recognise some of the potential downfalls (disagreements and personality clashes, varying levels of risk aversion, liquidity of assets, dividing the dollars in the event that one or more want to pull out) and realise the need to have a concrete agreement and property selection criteria in place….any suggestions or points that we should be really careful with?
Any help or advice you could give would be a godsend! Thank you very much!