600K house

[ragazzo]

There's a 600K house that's being built and he asked me if I would be interested in partnering with him. We'll sell the house after a few years and split the money 50/50. Good idea? Concerns?

He's married w/2 kids.
I'm married w/o kids.
My wife would have to send her dog to her parents.

 

[flyingboujanero]

Investments with friends and family members can turn ugly.

 

[zixxer]

Don't mix business with family.

 

[HomeBrewerDude]

what would happen if someone was unable to make their share of the payments?

if you do, contribute an extra 5% each to general fund for maintenance and such, split the fund when you sell.

 

[artikk]

Originally posted by: armatron
Don't mix business with family.

:thumbsup:

Originally posted by: flyingboujanero
Investments with friends and family members can turn ugly.

 

[K1052]

Money can easily turn family members against eachother. I've seen it happen with mine several times.

 

[Doggiedog]

Since you live in NJ, you probably know the RE market is white hot. My house value went up 75% in the last 2 years.

It may be a good idea to buy an unfinished house. From what I've seen once a house or apartment is finished the price goes up substantially. My work colleague bought an apartment in the city for $600K before the building was finished. It is now worth $800K 6 months later. A friend of mine bought an apartment in Chelsea in a new building and it has gone up significantly once it was finished.

 

[Lola]

Good Lord, i would never do that. NEVER. not with any member of my husbands or my family!

 

[dabuddha]

If you like your brother, then don't do it. If you don't like your brother, than go for it.

Will either one of you guys be living in the house?

 

[badmouse]

Here's the important question: would you be doing this, moving in together, if there were NOT the prospect of making a profit??

The best way to make this work is to buy the house, rent it out, and then sell it.

You need to think of this as a financial investment, not as a family/living thing.

 

[cjgallen]

STUPID idea.

 

[amoeba]

what happens when one of you at some time in the future wants to sell but the other doesn't?

I'm sure you can think of many other similar "problem situations"

 

[ragazzo]

He sold his home already and now we're both looking. At the moment, we're both renting.

We would both live in it and sell it a few years down the road.

 

[Jzero]

How come your wife can't keep her dog?

 

[dabuddha]

Originally posted by: ragazzo
He sold his home already and now we're both looking. At the moment, we're both renting.

We would both live in it and sell it a few years down the road.

That's gonna be tough. What if few years from now they decide they don't want to leave?

 

[rh71]

just for the purpose of profiting ? No. If you NEED a place to live, then I'd consider it... and only if it's compartmentalized from the other family/parents like a mother/daughter house. Don't do this just as an investment.

 

[ragazzo]

Originally posted by: Jzero
How come your wife can't keep her dog?

His two daughters are afraid of the little yorkie :| Plus he's afraid the dog will make a mess and devalue the house.

 

[HomeBrewerDude]

Originally posted by: ragazzo

Originally posted by: Jzero
How come your wife can't keep her dog?

His two daughters are afraid of the little yorkie :| Plus he's afraid the dog will make a mess and devalue the house.

nah, thats not cool. you're in for some serious headaches if you do this.

 

[Jzero]

Originally posted by: ragazzo

Originally posted by: Jzero
How come your wife can't keep her dog?

His two daughters are afraid of the little yorkie :| Plus he's afraid the dog will make a mess and devalue the house.

Big fat no. End of thread. Like children are incapable of making messes? I just wanted to check if it was something hypocritical like this or if perhaps someone was allergic.

This is going to be trouble.

 

[iamwiz82]

In the history of stupid ideas, that would be up there with the person who decided to finance the movie "Water World."

 

[djheater]

Originally posted by: flyingboujanero
Investments with friends and family members always turn ugly.

fixed

 

[Stark]

wow, so you can afford an extra $300k house payment?

must be nice!

(or are you all going to live together?) :thumbsdown:

 

[Looney]

I would never do that with friends or family, except with my parents (they've bailed me out enough... and if there were problems, it would probably be coming from me)

 

[K1052]

Originally posted by: iamwiz82
In the history of stupid ideas, that would be up there with the person who decided to finance the movie "Water World."

Hey, I liked Water World.

 

[ragazzo]

Okay. I won't do it. Thanks!