Morning Everyone - How to split percent ownership for a purchase
Morning everyone,
Had a question about splitting percent ownership when purchasing a property.
My downpayment requires 60k and I have 40k to put down. I am considering getting both of my brothers to put 10k/ea to give me the 60k total. Now, Considering I will be putting in a majority of the down payment as well as doing all the work to manage the STR as well as have the property under my name.
Questions:
How do I go about splitting the percent ownership?
Or should I even split it?
I was thinking about just getting them to loan me the money and I pay them back with interest but I would like for them to be a part of it as well. I have no idea what would be fair or what consideration to take into account. Any help with maybe clarifying what I should consider would be awesome!
Most Popular Reply
@Tomislav Glamuzina the hard part with giving your brothers equity is it really begins to add up. If you have a 300k house appreciating 5% a year then thats 15k a year. If you give them each 10% then you are giving up 3k a year in equity on the home plus proceeds. It just doesnt seem as appealing to me as a loan payback or maybe just a share of profits. In the end of the day though you have no profits unless you find that 20k and some is better then none, so do what has to be done just look out for them and yourself