Can I buy a home with my friend?

Dear William,

My friend and I were thinking of buying a property together because it’s too expensive in Weho and we are so over living in Hollywood and we want to be near the weho bar scene. Can two people not in a relationship buy a property together?

Carlos, Hollywood, Los Angeles

Hi Carlos!

I think it’s COOL BEANS you’re thinking beyond just your wallet and income when it comes to real estate investing. That faster you’re in, the quicker you get to trade chits at the table.

Can you get a home loan with a friend? 100% yes. Lenders do not care about your relationship status but rather how you’re going to pay the mortgage bill. The more people to pay the bill the better for them.

Did you know 3-7% of all home purchases are made with friends? In today’s market it is more than ever smart to think larger than what you can afford if you’re able to go in with an investor friend.

Just remember to set your financial and personal boundaries with them before you move in. I had a roommate once who decided to leave her hair in the shower after every use and I learned very early on that what you don’t communicate will ruin your life AND don’t share bathrooms! Will you have a housekeeper? Who is paying the utilities? What about groceries? What about if your door is closed to your bedroom? Communication is key in any relationship especially when it involves your financial future. It’s also really important to assess your friend and ask yourself if you would go into business with them. Just because you’re friends, doesn’t mean you would do well with them in business or paying bills.

Try out our cool mortgage calculator together to see what you can afford - be realistic and allow room for bar hopping in your budget.

http://www.rubelashmangroup.com/mortgagecalculator

Cheers!

William