buying property with family

[dunebug]

I would like to buy property and 2 of my close family members would like to invest in the same property. Does anyone know what type of Mortgage to get when there is more than 1 investor? Also, can you advise how to keep others such as spouses, children, debt collecotrs from having ownership in the property?

 

[seagrovegirl]

Talk to a real estate atty or a local title company, like McNeese Title or Gary Shipman, atty in Grayton Beach 231-3315. Not sure of the title company's number. Good luck!

 

[Beach Runner]

Two of our neighbors have partnerships with non-family members. It seems to work well for them. Their biggest gripe is their no pets policy.

Just get a good lawyer. I recommend Gary's law firm as well.

 

[AAbsolute]

I would like to buy property and 2 of my close family members would like to invest in the same property. Does anyone know what type of Mortgage to get when there is more than 1 investor? Also, can you advise how to keep others such as spouses, children, debt collecotrs from having ownership in the property?

Trusts are a pretty reliable vehicle for things like that. I'd research trusts online and get your general plan outlined before sitting down with Shipman and having him start his billing meter.

 

[Miss Critter]

Wouldn't an LLC be another option?

 

[tostador]

You might also consider owner-financing property, like ours: http://pensacola.craigslist.org/reo/867629659.html

And creating a living revocable trust with you and your investing family members as trustees. Its a great way to title the property with proper control of who you'd like as heirs, etc.

 

[scooterbug44]

Definitely get a lawyer involved - there are all sorts of tricks you can use to minimize issues.

Just make sure that sharing an investment won't cause issues. It's horrible how easily squabbles over money or property can tear apart relationships.

 

[SHELLY]

Just make sure that sharing an investment won't cause issues. It's horrible how easily squabbles over money or property can tear apart relationships.

True dat!! What would happen if one or both of your "partners" runs into financial/marital difficulties and can't hold up their end of the mortgage and carrying costs? roll: I know--NOTHING like that would happen in your family--right? If that's the case--why are you concerned about "spouses and children" getting ownership in the property? ) Nothing makes for great family Thanksgiving get-togethers than a good financial dispute.

My gut reaction is to recommend you go it alone on the property and let them rent it from you. But should you decide to throw all caution to the wind, I agree with the others--get the best RE lawyer money can buy.
.

 

[Beach Runner]

Some people I know do not allow mortgages in a partnership. Cash only. That way if one partner gets into financial trouble, the rest of them only get stuck with the utility and maintenance bills.

 

[ClintClint]

Great advice Shelly!!! There is no, none, nada, zipppo, amount of profit that can make up for the potential permanent damage that can be done to long relationships in this scenario. I can almost assure you that in this real estate/credit market, the likelyhood of "disputes" is greater ( and rising exponentially with time ) than huge profits after the split.
Also, if the purpose of this is to "hide assets" from spouses, some slick blood sucking vampire divorce attorney will create a living h*ll for all the partners. There is no vehicle for ownership or management that will overcome the extaordinary risks inherent in the greed and mistrust of the human soul.
Take Shelly's advice and "go it alone" then treat your friends like family.