Peter finds the perfect location for his sushi restaurant and wants to buy or rent the space. Although it is three years earlier than he wanted to open his restaurant, he does not want to miss out on this opportunity. The location is for sale; however, he does not have the money to buy it.

During an investment club meeting with all of his housemates, Peter brings up the idea of the investment club buying the building and renting it to him so he could open up his business. The housemates decide that this is an idea worth considering, but they want to do it separate from the investment club.

1. What form of ownership would you suggest that they structure the new business and why?

2. You meet with Leigh and she tells you of this idea. What advice would you give her about the dangers of real estate investing before they buy the property?

3. Leigh also wants to know about the benefits of investing in real estate. What would you tell her?

4. What would you do if you were one of the housemates? Why?