Hi guys,
Just wondering the best way to get started or if there are other options I haven't considered.
I have an investment property with a partner(family member).
The partner's financial circumstances have changed and they are wanting out.
The property is decent. Currently renting at $450pw.
The way I see if I have three options
I keep the house and stretch myself thin, while the bank gets all money as I'd be paying minimum payments.
We sell the property and I start from scratch.
I get a new Joint Venture partner.
I imagine it would be similar to a wrap type setup. Where the new partner would pay out the old partner in a defined payment agreement. All other details would be worked out with both parties.
I am really keen to do the Joint Venture option as I think this would help move me forward and not backwards.
Investing with someone who shared similar interests would be beneficial for both parties. Potentially into a long term partnership with someone who is wanting togrow their portfolio.
So my questions are:
How do I get started?
Where do I find a Joint Venture partner?
Any suggestions or better ideas?
Cheers
Tom
Would you be willing to guarantee a strangers loan? Or even a family members?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Would you be willing to guarantee a strangers loan? Or even a family members?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Whilst Terry's most might be duplicate, it highlights the very important point raised!
You will be jointly liable with what ever party you hold with, and will be liable for their portion if things go to mud.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hi Tom
Personally – if it were me, I'd either buy your partner out and own the property yourself or sell up, split the proceeds and start again.
Agree with Terry – I wouldn't want to guarantee anyone else's loan.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Worth making tje point twice!
Another thing to consider is utlising future equity
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi guys,
Thanks for your replies.
So no one knows how or where to find investing partners?
Terry: I had two trains of thought.
First idea was the half the house would be bought as a wrap arrangement. So there would be no need to guarantee any loan.
Second idea was if the partner was in a good financial position we would create a business and get a new loan for the house under the business name. With both parties as 50/50 partners.
What did you mean by utlising future equity?
I forgot to mention that I have been investing in some sense for a few years. I don't know a lot but I know enough to know that two heads would be better then one. I am really keen to get into a partnership so that I can keep investing and grow a decent property portfolio. So wether I sell or keep the house I am still looking for a investing partner or mentor.
Cheers
Tom
Forge wrote:Hi guys,Thanks for your replies.
So no one knows how or where to find investing partners?
Terry: I had two trains of thought.
First idea was the half the house would be bought as a wrap arrangement. So there would be no need to guarantee any loan.
Second idea was if the partner was in a good financial position we would create a business and get a new loan for the house under the business name. With both parties as 50/50 partners.
What did you mean by utlising future equity?
I forgot to mention that I have been investing in some sense for a few years. I don't know a lot but I know enough to know that two heads would be better then one. I am really keen to get into a partnership so that I can keep investing and grow a decent property portfolio. So wether I sell or keep the house I am still looking for a investing partner or mentor.
Cheers
Tom
Tom
It is a wrap type arrangment this may not help the family member who wants out. They would presumably want to be taken off the mortgage and want cash up front.
The equity comment what happens in the future if considerable equity is build up and one wants to use it and the other doesnt. Or even if both want to use it.
Also consider death divroce and incapacity.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
