Hello and my friends and welcome to another episode of Ask Marco where I answer your investing related questions. My question today comes from Amir and Amir says, hello. I just finished listening to all your podcasts episodes from back in 2014 up to the very last one that was posted last week. The contents were so great in educational. I really appreciate it. I can't wait to have my first property with you guys, although I am not there yet and I need to save some capital. I want to plan my strategies and pave my way to that goal. I have some questions. Two most important questions are as follows. Number one, I was wondering if it's better to partner with one or two of my friends were my brothers to purchase the first property. In that case, we can raise $20,000 much faster than what I would need to be able to save if that is a good idea.





How does the mortgage work? Okay, so there's actually two questions in this first question and he does have a second question, which I will try to get to here based on time. So what he's really asking here is if it's better to partner with his friends or his family, ultimately that's what he's asking. And the only reason he'd be asking this question from what I can tell is because it would allow him to raise that initial capital for the down payment and closing costs much quicker. So if he's sitting there with $10,000 and he can partner with his friends or his brothers, uh, and come up with 20, 20 to 25,000 to get that first three bedroom rental, single-family detached property, then yeah, he could certainly achieve that initial goal a lot quicker. The thing is, is you first of all have to ask yourself, are you comfortable with a partner?

And I'm not saying that's good or bad, it's really just the personalities and who the person is and you have a relationship, a good working relationship. Uh, even if their family, you know, sometimes businesses create and ruffle feathers within a family and it creates problems and, and upset and then all of a sudden people don't talk to each other and it's kind of like going through a bad divorce in a way because ultimately that's what might happen from that perspective. But there are a lot of people who do partner on businesses and partner on investing in many different things, particularly real estate. So the first question is not so much about the capital or the finances, it's more about the compatibility of you and your partner, whoever that may be. You know, I've heard somewhere in the past that the toughest ship to sail is a partnership.

And so if that's true, then you want to make sure that you're picking the right partner. It's no different than picking a spouse. You want to make sure that whoever you partner with, it's for life, that you want to pick the right partner. Having said, if you do partner with friends or family and you're able to raise more investment capital than you would on your own, or at least maybe quicker than you can on your own, then that might be a good idea. And so when you get to 20, 25, even $30,000, you've got enough there for the down payment and closing costs to get that first property. And of course, the down payment will differ depending on the location and the price point of the property. But it'll get you going. And if you are expecting to be able to save more faster as time goes on, whether it's through your employment or through a small business or growing your existing business, then great.

You know, just keep stacking and building that portfolio and letting it grow and watching it grow. So that's the first part of the question. Uh, the second part is how does the mortgage work? Well, somebody's going to need to qualify for the financing, especially if you're going after conventional financing. Someone needs to qualify. And that's pretty much the case most if not all of the time. So you just need to decide between the partners who would be the better person to qualify.