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Started By
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Buying house yourself or with friends
Posted on 8/29/23 at 1:23 pm
Posted on 8/29/23 at 1:23 pm
We have been but at purchasing a Lakehouse in the KC area. Some friends of ours already own one on the lake completely furnished with high end kitchen etc and a pontoon and ski boat. The husband contacted me about buying into their house and sharing it with them. Have any of you done this before? He said he would owner finance since he has a 2.5 percent loan. We don’t plan on being here forever so not sure how we would deal with that if we wanted out
15
Posted on 8/29/23 at 1:33 pm to Shotgun Willie
Don't do it. Fast way to end a friendship.
I can't tell you how many times I've seen this go poorly.
I can't tell you how many times I've seen this go poorly.
Posted on 8/29/23 at 1:33 pm to Shotgun Willie
Sounds like a great way to get in a messy situation and lose friends.
Posted on 8/29/23 at 1:42 pm to Shotgun Willie
If you are interested in using their house, maybe work out a rental agreement with them instead. As the other posters suggested, this is a bad idea.
Posted on 8/29/23 at 1:43 pm to Shotgun Willie
Rule #1 when having friends you cherish.
Do not get financially obligated to anything with them! It will only turn out bad in the end.
Think of it as a risk. You risk losing a decent amount of money if things go south. If you want to stay friends with them, do not accept that risk.
Do not get financially obligated to anything with them! It will only turn out bad in the end.
Think of it as a risk. You risk losing a decent amount of money if things go south. If you want to stay friends with them, do not accept that risk.
Posted on 8/29/23 at 2:16 pm to Shotgun Willie
nope nope nope
Posted on 8/29/23 at 2:22 pm to Shotgun Willie
Might work out great, but the 3 biggest concerns I'd have are
1. Is he offering to let you buy in because he's actually stretched himself too thin financially and can't really afford it anymore? If so, what's going to happen when there's a big ticket maintenance item like a new roof or HVAC goes out?
2. What happens if your friends have marital issues and file for divorce? Now your vacation house is tied up in a divorce proceeding and likely that at least one of the divorcee's share would have to be bought out by the rest of you or have to sell the property.
3. What happens if you're using the pontoon or ski boat on a weekend when your buddy isn't there and it starts having motor issues or something? Is your buddy going to blame you for whatever the issue is and want you to pay the full repair cost?
1. Is he offering to let you buy in because he's actually stretched himself too thin financially and can't really afford it anymore? If so, what's going to happen when there's a big ticket maintenance item like a new roof or HVAC goes out?
2. What happens if your friends have marital issues and file for divorce? Now your vacation house is tied up in a divorce proceeding and likely that at least one of the divorcee's share would have to be bought out by the rest of you or have to sell the property.
3. What happens if you're using the pontoon or ski boat on a weekend when your buddy isn't there and it starts having motor issues or something? Is your buddy going to blame you for whatever the issue is and want you to pay the full repair cost?
Posted on 8/29/23 at 3:18 pm to Shotgun Willie
A real friend wouldn't ask to buy into his recreational purchase. He would ask me if I ever wanted to use it, just let him know.
Posted on 8/29/23 at 4:31 pm to Shotgun Willie
Even buying a house with a spouse is stressful.
Other friends and family, “no way Jose.”
Other friends and family, “no way Jose.”
Posted on 8/29/23 at 6:01 pm to Shotgun Willie
My advice - and I can't stress this enough - is to tell your friend "no thanks" and never look back. That is a terrible idea for too many reasons to count.
Posted on 8/29/23 at 6:01 pm to Shotgun Willie
Bad idea. I honestly can’t think of one good reason you should get into a situation like that.
This post was edited on 8/29/23 at 6:05 pm
Posted on 8/29/23 at 6:52 pm to Shotgun Willie
Yeah, as others have made clear, would not do that. Take them out for a really nice dinner as a thank you instead when invited.
Posted on 8/30/23 at 5:29 pm to Shotgun Willie
quote:Difficulty #25 of 350 in the scenario you suggest.
We don’t plan on being here forever so not sure how we would deal with that if we wanted out
Do
Not
Buy
A
Partial
Interest
In
That
Property
Posted on 8/30/23 at 9:51 pm to Shotgun Willie
quote:
Buying house yourself or with friends
Do not do this. The friendship won’t survive it.
Posted on 8/31/23 at 9:47 am to Shotgun Willie
quote:
He said he would owner finance since he has a 2.5 percent loan.
Back in the Wild, Wild West days of 80s real estate, I would do wrap-around mortgages (my owner financing was “wrapped” around the existing mortgage). But banks eventually got wise to those types of deals, and with computerization, they were better able to track title transfers or additions, and trigger due on sale clauses. Before that, as a seller, I wasn’t at substantial risk because I was collecting note payments from the buyer and then paying the original mortgage. But the buyer was at risk, because what if I stopped paying the original mortgage? These days, I doubt that you’d find a (reputable) real estate attorney or title company that would put together a deal like that.
So that’s just another one of the 1000 reasons that you should politely decline your pal’s offer. It would just be a matter of when, not if this deal would eventually go bad for one or both parties.
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