Two parties investing in multi-family property, big question

[nym9]

What is the name of your state? NY

I need some advice on purchasing a multi-family home with an associate, sharing equal title ownership.

What I would like is for my share to be paying the down payment, about 30%, and have the other party pay the remaining 70% (mostly with a mortgage).

To balance this, the other party would be responsible for collecting and handling all the rental income.

Once the home is paid off, I would like the rental income to be shared 50/50.

Is this done, is it common, is it even possible? Is a contract necessary?

 

[PghREA]

What is the name of your state? NY

I need some advice on purchasing a multi-family home with an associate, sharing equal title ownership.

What I would like is for my share to be paying the down payment, about 30%, and have the other party pay the remaining 70% (mostly with a mortgage).

To balance this, the other party would be responsible for collecting and handling all the rental income.

Once the home is paid off, I would like the rental income to be shared 50/50.

Is this done, is it common, is it even possible? Is a contract necessary?[/QUOTE]

What ever you end up doing - a contract is necessary! Read some of the horror stories on this forum. What is perfectly agreeable and acceptable to both of you today may not be that way 2 months, 2 years or 2 decades from today.

 

[HomeGuru]

One word: attorney.

 

[nym9]

regarding a contract and attorney: if my name is on the title, would anything else be necessary?

arent I owed 50% of rental income by default, in which case not collecting my share until the house is paid is simply my choice?

 

[HomeGuru]

regarding a contract and attorney: if my name is on the title, would anything else be necessary?

**A: yes, a LOT else.
***********
arent I owed 50% of rental income by default, in which case not collecting my share until the house is paid is simply my choice?

**A: and not getting legal counsel would also be your choice.

 

[nym9]

**A: and not getting legal counsel would also be your choice.

If you look at my question, it would seem the other party would need the attorney to enforce my deal.

In any event we will probably use an attorney, I was just wondering if there was any advice on how this type of agreement is usually done in terms of percentages, what is considered fair.

 

[HomeGuru]

If you look at my question, it would seem the other party would need the attorney to enforce my deal.

In any event we will probably use an attorney, I was just wondering if there was any advice on how this type of agreement is usually done in terms of percentages, what is considered fair.

**A: everything is negotiable and fairness is not the same to all people.

 

[nym9]

**A: everything is negotiable and fairness is not the same to all people.

Thats why I am asking for opinions.

30% down payment from one party.
other party pays the remaining 70% over time, plus gets all rental income.
after mortgage is paid, both parties share rental income equally.

I have never heard of this before, so I was just trying to get some advice on the fairness of the deal, and the deal itself for that matter. Does it make sense, are there alternatives etc.