How Can Our Family Buy Real Estate Together?
There are a number of choices, including:
Equity-sharing deals. Here some family members are investors while others reside on the property. Equity sharing deals, in particular, have potential for everyone if a home in poor condition is purchased and the on-site, resident investors will put in the sweat equity required to fix it up.
Partnerships. Family partnerships are common but everyone has to understand their obligations.
Corporations. A corporation can be formed, with shares for everyone. The problem here is selling shares in a small entity if someone wants out.
All familial arrangements should be based on a written agreement developed by an attorney, there should be wills and living wills for everyone, and advice from a tax professional for each party.
Also, speak with lenders before making final arrangements. Some approaches may be easier to finance than others.
© Copyright 