Hey Bigger Pockets!
Pretty new here, but have already learned so much about real estate just by lurking around.
My question is as follows: My father passed away nine years ago and left me and my siblings the home we grew up in. The title is in all three of our names. There is no mortgage on it, but the house is in far from perfect shape.
I want to start investing in buy and hold properties. Would I somehow be able to use the worth of my inherited home to invest in buying another property? Any expert advice on this would be much appreciated. Also, if there is a thread that I've missed in my going through the forums that pertains to this, please post the link.
I'd be happy to post more info if you need it. Thanks for all your help guys!
I am sure you can, but your siblings will probably have to sign the mortgage as well. You will be mortgaging their share as well.
Inheriting it isn't any issue for getting a mortgage on it. As @Arlan Potter says, though, you're only the only in a one third undivided interest (or some such.) Not likely to find a lender who will loan on just your interest. If they have to foreclose on you they can only take your interest if that's their only security.
Jon Holdman, Flying Phoenix LLC
Could you sell your interest to your siblings and take the money and go invest it yourself??
Nobody else but your siblings likely wants a partial interest.
We do fractional interest loans in California.
It's an expensive product as the collateral is deficient and would require a lender to first foreclose THEN force a partition action.
Would you lend on part of a car or truck? Which part? The hood? That's the problem.
I doubt your Father had your investing ideas in mind and was primarily looking to provide you a home to live in.
Your best plan is to learn the business of real estate, use all your free time to study and work hard to assist someone in your area that's already a successful property investor reach their goals in order that you may learn then reach yours.
Ah, thank you all for your insights. As my siblings are in no position to buy out my share, nor I theirs, I'll just keep on keeping on and learn more about the business. Thanks!
Is selling an option? Sell and split the proceeds three ways.
Jon Holdman, Flying Phoenix LLC
@Jon Holdman what he said. Sounds like none of ya have any money so why wouldn't siblings want to sell it and claim their portion. Remember real estate costs money to own free and clear. There are taxes, insurance and maintenance. Sell.
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