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Laura Berkobin
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  • New to Real Estate
  • ATL, GA
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Investment Property - Deal Structure with Family

Laura Berkobin
Pro Member
  • New to Real Estate
  • ATL, GA
Posted Mar 23 2024, 09:08

Hi Everyone! 

Close relatives buying rental property together but one person (myself) will be the operator with down payment help from family members. I'm curious on how best to structure this approach: Who owns what, who gets what, rental income & depreciation (all tax treatment). I've thought of 3 different approaches - 

1. co-borrow...multiple parties on deed, entitled to % rent & depreciation based on investment, have "access" to property

2. co-sign...multiple parties not on deed, negotiate % rent & depreciation based on investment, no legal access to property

3. side-deal...parties gifts the down payment, operator must qualify for loan, all other details TBD

Are there more approaches/options?

Not sure what I wrote above is accurate or relevant, looking for feedback on how other's have handled this and why, what are the advantages or disadvantages, things to avoid, etc.

Thanks!

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