Should You Buy Real Estate With a Partner? Pros, Cons & Legal Tips

Real estate partnerships are becoming more common in today’s market as prices rise and financing becomes more challenging to secure solo. Whether you’re teaming up with a spouse, friend, or business associate, partnering in real estate can be a powerful way to scale faster, access more capital, and diversify skill sets—but it’s not without risks.

In this blog, we’ll explore the pros and cons of investing with a partner, the most common structures used in Canadian real estate, and how to protect your interests with a solid legal foundation.

Benefits of Real Estate Partnerships

1. Shared Financial Burden

One of the biggest barriers to real estate investing is capital. By teaming up, you can split the down payment, closing costs, and ongoing expenses. This is especially valuable in higher-priced markets like the GTA, where solo investing can feel out of reach.

2. Leverage Complementary Skills

Perhaps you’re great at renovations, but your partner excels at number crunching. Or one of you has time to manage tenants, while the other brings financial backing. Successful partnerships often bring together people with different strengths.

3. Access to Larger Deals

Two investors can often qualify for more financing or buy a larger property together than they could alone. That might mean moving from a single-family home to a triplex or even a small apartment building.

The Drawbacks of Partnering

1. Shared Decision-Making

Every major decision—repairs, refinancing, selling—must be agreed upon. Differing investment goals, timelines, or communication styles can create friction.

2. Split Profits

While costs are shared, so are the profits. A deal that might yield $1,500/month in cash flow becomes $750/month after a 50/50 split—not bad, but less impactful.

3. Complicated Exit Strategy

Breaking up a partnership is far more complex than selling a solo-owned property. One partner may want to exit early, refinance, or take a loss—and disagreements can lead to legal disputes if not handled properly.

How to Structure a Real Estate Partnership

In Canada, the most common ways to structure real estate partnerships are:

• Joint Venture (JV): A flexible agreement where one party may provide capital while the other handles operations.

• Partnership Agreement: Typically used when both parties are actively involved and share profit/loss.

• Incorporated Entity: For more advanced investors, setting up a corporation can offer tax and liability advantages.

  
  

Work with a real estate-savvy accountant and lawyer to determine the best structure for your goals and risk profile.

The Importance of a JV or Partnership Agreement

Never invest with someone—even family—without a written agreement. This document should include:

• Roles and responsibilities

• Ownership percentages

• How decisions are made

• What happens if one party wants out

• Dispute resolution process

  
  

Think of it as a prenup for your property.

Final Thoughts

Partnering in real estate can be a smart move—if it’s the right fit. With clear expectations, legal structure, and mutual trust, a partnership can help you scale faster and reduce risk. But without a solid agreement and good communication, it can become one of the costliest mistakes in your investing career.

At Greenell Capital, we help investors make strategic, informed decisions—whether flying solo or teaming up. If you're considering a partnership, start with the right foundation.