Starting a real estate investment partnership can be a rewarding venture, but it comes with its own set of challenges, as I learned firsthand. Six years ago, I teamed up with two partners to invest in a triplex in Columbia, South Carolina. Despite knowing the property required significant repairs, we rushed into an offer without viewing one of the units due to time constraints. This decision proved costly when the tenant vacated immediately after closing, leaving behind a unit in deplorable condition that required around $10,000 in renovations. Additionally, we faced unexpected expenses when the water heaters in two other units failed shortly after we took ownership. To manage the financial strain, I utilized a small business credit card that allowed us to cover these costs without accruing debt. This experience taught me the importance of thorough due diligence and the strategic use of credit as a financial tool in real estate investments.
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