My family and I are investing into a home for my parents. What are our options as far as multiple buyers on a real estate deal are?
Could we do a portfolio loan where we all pool in equal shares of the required down payment?
1. Every Buyer that shows up on the P&S will need to get approved for the mortgage on the property
2. Ownership of the property is based on the parties to the contract
I hope this answers your question. If you are all contributing cash to make the purchase all cash, then all you need to do is assign value to the contributions and you deed the interests in the property accordingly. You could also purchase in a corp and assign value of the property through the shares in the corp.
Talk to an Attorney, the above is based on how I have structured transactions in the past as an Agent; I am NOT an Attorney.
Thank you Moises!
You are welcome; I am glad I could assist.
This is a noble idea, but the difficulties usually happen when life events (the "dreadful Ds" = disease, disability, death, divorce, disagreements) complicate things. Are all of you available to help with maintaining the property or will one of you who lives nearby carry more duties to help take care of the place? Do you all have the same financial ability to pay WHEN the AC or roof needs replacement? If any of those dreadful Ds happens and one of the owners has to settle with a spouse for a share of ownership or loses their ability to contribute financially, how will that work?
I'm not saying don't do it, but you really need to think through how y'all set this up and keep your exit strategy(ies) in mind. There is always an exit for every property. The more owners, the more complicated to exit the property for you or your heirs.
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