Posted by rdlazo on August 18, 2005 at 15:16:04:
In addition nobody should be able to
force everybody to sell because one
party want to sell. If somebody want out
and one fam want to buy there should be
enough time for that fam buyer to raise
money and at pre agreed upon price.
Tricky I think but can be done but as
Ed say depends on what kind of relationship
is going on with the family.
Rdlazo
need advice on buy property with family - Posted by john
Posted by john on August 18, 2005 at 08:35:53:
We are thinking of buying vacation property with several family memebers. Property will be in west indies. What the best way to buy and hold it to avoid problem with the family members over ownership.
Very formally, no cut corners - Posted by John Merchant
Posted by John Merchant on August 23, 2005 at 19:24:45:
Especially with your family, do it very formally with your attorney drafting the LLC or whatever entity you use, etc.
I’ve seen and handled litigation for some terrible family destoying battles and I’ve seen family members threaten to kill each other if they ever see each other again.
Frankly I’d say don’t do it, but if you do, please get it in writing just as you would with a group of strangers you figure is out to get to you.
Re: need advice on buy property with family - Posted by Kathi
Posted by Kathi on August 18, 2005 at 23:39:14:
I would be leary.
One of my BIls would like us and other siblings to invest in a B&B in the Keys that we would share when not rented. We live in OH. He has never had an investment property, only his one homes. I have urged him to join his loca REIA and attend meetings. He says that he is too buzy. He has a Karlton Sheets (gag)program that he has owned for several years that was still in its plastic wrapping when I* was there 2 years ago. I opened it up. To the best of my knowledge he has still not red it or played the tapes. yes they are tapes. That tells you how old it is. He is clueless and wants to buy clues without doing the reasearch. That is as effective expecting to get healthy by buying a membership to a fitness center but not attending to work out.
Re: need advice on buy property with family - Posted by KPC
Posted by KPC on August 18, 2005 at 14:42:07:
don’t do it. You might look into resorts that sell fractional ownership. Same concept only with rules and strangers. do you really want to mess with maintaining, insuring, etc, a vacation home that far away?
advice on buy property with family - Posted by Natalie-VA
Posted by Natalie-VA on August 18, 2005 at 13:02:27:
John,
In addition to the good points that Ed brought up, you need to figure out what should happen with ownership if some owners die.
For example, if I bought property with my brothers, I would be concerned that if one of them passes away, I would probably own property with my sister-in-law. Then maybe she gets remarried, etc. I don’t even want to go there.
Just some more things to think about…
–Natalie
Re: need advice on buy property with family - Posted by Ed Garcia
Posted by Ed Garcia on August 18, 2005 at 11:24:40:
John,
This could be a tough one.
My grandfather use to call me Jackson as a nick name. I?ll never forget the day my grandfather said to me. Jackson, thank God you can choose your friends, because you?re stuck with your relatives.
Another little cliché he?d say is, In-laws turn to be Outlaws. Even through my grandfathers humor I never failed to get the message.
Bottom line is, you have to set up rules or criteria that all family members involved agree on. The time use of the home should be given out by a drawing right at the beginning. You can either trade time frames or make them revolving so that each member gets a fair shot at them. Once assigned, they can be traded if agreed upon.
Once the agreed upon rules are set up they should protect the family members from each other. I said should, that don?t mean they will, you?ll always have a member that will rock the boat and want to change and if you don?t change they will be offended.
You could set up a LLC and each member could purchase shares in the LLC. That way if they for what ever reason wanted out, another member could purchase their shares, and it could be a clean brake and not disturb the initial family membership.
Unfortunately John, we don?t know all of the circumstances of you and your family so I hope that this has given you some food for thought.
Ed Garcia