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Should I Invest in Real Estate with My Friend?

Purchasing property on your own is a significant financial investment, especially for first-time investors. You will need to save up for the down payment and cover ongoing costs like mortgage payments, maintenance, repair, property taxes and insurance. If you are eager to invest in property but lack the finances or expertise, you might consider buying a property with a friend.

The main ways in which two people can co-own a property are Joint Tenancy and Tenancy in Common. In joint tenancy, each friend has an equal share in the property they own. Tenancy in common means that each friend owns a share in the property in proportions like 75/25 or 60/40. This is an ideal arrangement when one friend has more money to invest than the other.

Pros and cons of investing in property with a friend

Investing with a friend can boost your capital and enable the combination of complementary skills. However, it can also complicate the real estate investing process significantly. Let us examine the benefits and downsides of buying property with a friend:


  • Access to more capital: By pooling your resources, you might be able to afford a better property in a better market than you would if you went solo.

  • Easier to qualify for a loan: When you apply for a mortgage with a friend, the lender will establish your eligibility based on your combined credit score and income. Partnering with the right friend could enhance your chances of securing a loan at a competitive rate.

  • Split homeownership costs: Buying property with a friend means that you don’t have to shoulder all the homeownership costs on your own.


  • Loss of control: In a partnership, you don't get to call all the shots. Your friend will also have a say regarding the property, which could force you to compromise.

  • Hard to work on the fine print: When it comes to owning property jointly, you need to think about things like how shares will be divided and how to handle inheritance issues. Such conversations can be challenging.

  • Risk of losing the property: If your friend fails to make their share of mortgage payments, you will have to raise the entire amount by yourself or risk foreclosure.


Generally, it is not a very good idea to mix friendship with business. When expectations are not met, the relationship might suffer. If you need help with buying real estate or if you are worried about sharing the purchase with a friend or family member, contact Regalway Homes. We will provide the expertise necessary for making a wise investment decision and lay out all necessities to protect you, your partner, and your friendship.

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