Posted by James Harris on March 18, 2006 at 20:15:52:
Why would you weant to sell a portion of your home to an investor? Why not just go to the bank or mortgage broker and either get a second mortgage, which is what you will be doing, or do a cash out refi to get the money you need.
Sell part owneship in my home to REI - Posted by Mike
Posted by Mike on March 18, 2006 at 13:19:31:
I am interested structuring a deal where I would sell part (10%-25%) of my current home to a REI. This would provide cash for me to purchase a new primary residence while keeping my current property as an investment.
ANy advice on how to structure this type of deal to make it attractive to a REI.
Thanks in advance.
Re: Sell part owneship in my home to REI - Posted by Shaun
Posted by Shaun on March 19, 2006 at 14:16:32:
If you have equity, just get a home equity line of credit.
Re: Sell part owneship in my home to REI - Posted by John
Posted by John on March 18, 2006 at 20:20:39:
I can’t say for all investors, or even most. My thoughts on your idea is slim to none. You don’t give numbers so we will make some up. Say a 200K property free and clear. If I was buying 50% I would not pay more than about 20-25K max. If financing is on the property then you would have the mortgage and investor would have and interest in title and trigger DOS clause. Now suppose I decided to live in my 50% of the house. Where is your investment, besides at an attorneys office filing a partision suite, that is long and expensive.
This kind of deal has way too many risks and not much profit potential. You would be better to sell or refinance to pull some equity and then keep as rental assuming it will cash flow.