With rising home prices making solo buying more challenging, some people are turning to an unconventional-yet-effective solution: co-buying with friends or family, notes Better Homes & Gardens. Pooling resources to purchase a home can make the dream of homeownership more attainable, but before diving in, there are a few things to keep in mind.

On the plus side, co-buying means you don’t need as much money upfront. You can share the down payment, mortgage payments, and maintenance costs, making it a less daunting financial commitment. This arrangement can be especially helpful for first-time homebuyers or those looking to invest in a bigger property than they could afford alone.

However, as appealing as it sounds, co-buying also comes with potential pitfalls. One of the biggest concerns is making sure all parties are on the same page. It’s essential to treat this like a true business arrangement and to have a clear, legally binding agreement that outlines how costs will be divided, what happens if someone wants to sell their share, and how potential disputes will be handled. Without this structure, you risk misunderstandings or conflicts down the road.

Before jumping into co-buying, ask yourself: Does everyone have the same goals and expectations? Are you all prepared for the long-term commitment of homeownership? It also might be worth speaking with an accountant or estate attorney about the title and capital gains implications. Addressing these questions and having a well-thought-out exit strategy is key to making co-buying a successful venture.

Co-buying can be a great way to invest in real estate with loved ones, but it’s important to proceed cautiously and make sure you’re fully informed before taking the plunge.