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Old 06-10-2018, 04:38 AM
 
Location: Cary, NC
31,647 posts, read 55,374,605 times
Reputation: 30193

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Quote:
Originally Posted by Kavalier View Post
Just wondering what kind of feedback some of you could give me.


If I wanted to "partner" with someone - a friend or family member - on buying a house and renting it out.


Is this a bad idea? Good idea? What are the steps we would need to take to make such an arraignment work? Legal documents we'd have to look into?


Is it too problematic?
Most times it is not a good idea.
But, it can be a very effective, although expensive, way to alienate a relative or lose a friend.

Legal documents?
1. Partnership agreement. Usually an LLC, but your attorney and/or CPA will help you determine the best avenue for proceeding.

Think of it as a prenup. You are planning the breakup before the wedding.
It takes some of the glow off the romance, but that is how smart people become partners in business.

Who brings what money to purchase?
Who manages the property rental?
Who maintains the property?
Who pays the bills, in what shares, when you have negative cash flow?
Who takes what money when you split?

Your attorney will have plenty more stipulations in your prenup.
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Old 06-10-2018, 06:15 AM
 
4,722 posts, read 2,924,908 times
Reputation: 11559
I know a 65 year old man who has owned and lived in a house since age 24 with other men who owned and lived in the same house.

At first the house was owned by 5 or 6 men together, then it became 3 men, then 2 men for the past 35 or 38 years.

It's a very unusual situation. As some of the men got married and moved out, their shares of the house were bought out by the remaining men.

For the first 15 years, the house also contained some additional men renting rooms in the house with use of the whole house.

The 2 remaining men, one 65 and one 67 now, never married, and have been house-mates for over 38 years. Neither are gay nor gay active - one never dated after college and the other never pursued women much.

Fairly unusual real estate situation I would imagine.

Last edited by matisse12; 06-10-2018 at 06:29 AM..
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Old 06-10-2018, 06:22 AM
 
64,745 posts, read 66,226,110 times
Reputation: 43132
we have a stabilized tenant in one of our co-ops who has been an original tenant since the building was a rental in the 1980's . he has a 26 year old son in the apartment who has succession rights .

we recently offered the son the apartment for 1/2 price , no money down and we will finance it .

he is thinking about it but not sure he can afford it . if i was him i would look in to a partner on a deal like this .
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Old 06-10-2018, 08:33 AM
 
Location: Los Angeles (Native)
24,232 posts, read 13,717,086 times
Reputation: 11410
Quote:
Originally Posted by matisse12 View Post
I know a 65 year old man who has owned and lived in a house since age 24 with other men who owned and lived in the same house.

At first the house was owned by 5 or 6 men together, then it became 3 men, then 2 men for the past 35 or 38 years.

It's a very unusual situation. As some of the men got married and moved out, their shares of the house were bought out by the remaining men.

For the first 15 years, the house also contained some additional men renting rooms in the house with use of the whole house.

The 2 remaining men, one 65 and one 67 now, never married, and have been house-mates for over 38 years. Neither are gay nor gay active - one never dated after college and the other never pursued women much.

Fairly unusual real estate situation I would imagine.
Interesting . I canít say Iíve heard of such a thing. Iíve heard of communal living in the hippy era though so I guess this is similar but never thought of how ownership was structured or if they just rented a place and lived together .
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