damdonzi

I am looking at buying a property with multiple homes, docks and 2 other families.
For those of you that have actually done this, would really like to hear how you make it run smoothly and advice on things to watch out for.
As an example, proportional upgrages to the inside of the homes. Do you split the costs across all parties and enjoy equal financial gains at time of sale, or leave it to the individual homes and the divy up the gains at the time of sale? For example house #1owned by family #1 needs $75K in interior work, but house #2 owned by family #2 only needs $10K worth of work. Leaning towards making only exterior work split among the families.
Any advice on any related part of this set up is appreciated!

Rattlesnake Jake

iTrader: (2)

Have a lawyer draw up an contract pertaining to property, structures, all improvements, etc that all persons involved agree to.

FIXX

iTrader: (2)

if you can afford to do it on your own...trust me greed plays a big part in it..

damdonzi

Thanks. Already on that.

Jupiter Sunsation

75K sounds like the whole place is shot!

Cevert

Suggest you contact a law firm that navigates your state's condominium laws every day of the week; it's just like drawing-up an HOA bylaws.

damdonzi

Not at all. Just an example.

damdonzi

Not going to condo them (at least initially) but appreciate where you are coming from.

ROB FREEMAN

iTrader: (2)

Stars out fine. Chicks get in rubar. It turns into disaster. Can't say I like anyone that much , could turn into a fiasco. Not me. Good luck with you're venture

3pointstar

First let me say that I don't want to pour cold water on your idea/plan. Let me tell you about my neighbors that have done what you are offering.

We have been blessed with a small summer home in southern Michigan. It is on an inland lake and it is perfect for skiing, tubing, fishing and other water stuffs -- We also believe that we need to be good stewards of the house, boat etc. In other words we try to the best of our ability to keep ALL the maintenance up to date and above all neat and clean - In fact the place is almost (notice I said almost) as clean as the bilge in our boat!!!!

Our neighbors are two couples from the Chicago area that purchased the properly as a group. Well over the years a lot has happened. First one of the couples marriage ended with a divorce. It seems that they have been amicable with the split but I'm sure it does have its movements. The other issue was a few years ago one of the couples husband lost his job-- so from a dual income down to one-- guess what will suffer. The problem that we have seen is their lack of maintenance. We really get the impression that each thinks the other will do it. Lawn isn't mowed, trees are not trimmed, all of their water toys are here there and everywhere. When something does break - they try to find someone locally - which isn't the easiest to find-Long and short nothing gets done.

I know today you probably have a good relationship with all the couples - and for the first few years things will be ok. But then someone may think that it is not needed maintenance - or it costs too much...In my opinion I would run like the wind away from this arrangement. but with that said - if you want to pursue - I would get me an attorney to draw up a very specific agreement - This is business and not a friendship. .. I

Just my two cents and really I wish you all the best

3pointstar