I need an advice. My husband is going to invest money with his friends.?

They're planning to buy a property in which he and 3 of his friends are going to share. I told him that it would be wise to put everything in black and white but he doesn't want to bother stating that they trust each other. I know our friends are trustworthy but I'm just suggesting and I feel that it's better if you have an agreement in writing for who knows what might happen. Please help especially with the legalities and all of them are married too.

Tell your husband that if he wants to preserve the friendship they must all sign a good contract, drafted by a lawyer, if only to ensure that they all understand the same things. It is inviting disaster to do otherwise, but people keep doing it time after time. In fact an old Chinese proverb goes further: "With your friend eat and drink, but business never do".

Well it is quit OK to be concern that there will be problems. The roller coaster wouldn't be any fun if there where no turns in it. So enjoy the ride and trust that it is for your best interest and in-joy it for this is a time where you can change your living style and promote a better future for you and your family. You have to be on the ride to benefit from it tho... Trust

If all of them are going to buy the property then all of them need to be on the deed. If only one of them is on the deed then that one will have to claim all the profits, assuming this is a business investment, on their taxes. Also if only one of them is on the deed then that one can turn around and sell it without notifying the others. You are right that if they are going to do this as a business then they should have a business plan to which they all agree on and sign it, then noterized. Even the best of friends can screw each other and not even realize they are doing it.

Yes. A document is important when investing, even between friends. What will your husband & friends do when one of them wants to bail early, get cashed out? How will they handle extra expenses that may come up during this investment time. What if one of them does not want to or can not finiancially contribute their share towards the expenses. I did property investment with friends and one was an attorney who set up the LLC papers. The others had more free time and could do work/time required toward/on the investment. I had a full time job and could only participate during the montly meetings. These things need to be considered.
Best of luck to you.

If they all trust each other AND are reasonable people with good business judgment, they should ALL want to have everything in writing. Asking them to do so will put it to the test. If they refuse, something IS fishy, or they may be good friends but not smart business people.

There is one more dimension. As unpleasant as it may be, do YOU trust your husband and his intentions?

They need to hire a lawyer to set up an LLC and spell out who, what, where, how much.

If they don't, I will be listening for a phone call from you to Bill Handle in a few years or months.

a lawyer needs to be involved

a little mantra I try and live by

'Trust is a lovely thing to have and a terrible thing when lost.'

So don't kid yourself that everything will always be pleasant, when something bad happens, that's when you'll wish you didn't trust someone or had it in writing.

Think about things like if one of the partners suffers a hardship and needs to liquidate / exit the investment? What is the outcome then?

Good luck