2 houses on one deed - Posted by Rick

Posted by Bill Gatten on May 14, 1999 at 16:13:01:

Rick,

I like this. What I (personally) would do is buy to hold, and do a “quick condominiumization” with a Land Trust. That is I would bring folks in as owner-beneficiaries of the trust that holds title to the property, and give them each a proportionate share of the beneficiary interest and the benefits and incidents of ownership (say, 50% to me and 25% to each of them along with the tax write-off, etc.), with an agreement that we would all sell at a specified point in the future and share the profits with respect to our percentages of beneficiary interest held in the title-holding trust (e.g., akin to to a sooper easy Ltd Prtrsp stucture). The cash flow potential here is excellent and the apparent difficulty in disposition likely means you could pick it up for a lot less than a knowledgeable person might sell it for.

The 50/25/25 split of the whole, means that they each share 50:50 with you in the net profits on their own “unit” when the property sells.

You could, of course, L/O in the same manner, but that wouldn’t give you the ability to “sell” the tax write-off in exchange for the significantly larger rents and cash up-front (let alone the protection of non-partionability in the event that someone’s personal problems would create legal entanglement threats to the title: e.g., BK, marital disputes, tax liens, creditor judgements, etc.).

Bill

2 houses on one deed - Posted by Rick

Posted by Rick on May 14, 1999 at 01:19:28:

There exists an opportunity in my area with two houses on one deed. A second house was built on the property years ago too close to the property line to be seperated legally. Oddly enough the two units are on a borderline and are in different towns! (and school districts) Both units are rented and there is a good cash flow. The realtor claims everything is grandfathered in. Before I go any further here can anyone advise me of any potential problems here? What should I look for? The property has been on the market for a few months, so there must be a catch somewhere. I would appreciate any experienced comments here.

Re: 2 houses on one deed - Posted by Irwin

Posted by Irwin on May 14, 1999 at 20:10:15:

Never, rely on a Realtor about something as technical as grandfathering a non-conforming use, or a violation of set back, side yard, etc…Get a lawyer’s opinion before you close. The Realtor may be right, but get it backed up by a lawyer, and in writing.