2006-08-12 13:01:06 · 9 answers · asked by Julie 1 in Business & Finance ➔ Renting & Real Estate
Form a partnership. In the partnership, include provisions for death (one of you dies), disability (one of you becomes disabled), divorce (one of you gets divorced) and departure (one of you wants to get out of the deal). Have the partnership purchase the property and sell it.
I am not a lawyer or accountant, so please consult with your own for any legal and financial issues.
Also, ignore the people who say it's late to flip. I flip homes without rehabbing them and have no issues. If you know what you're doing, you can make money no matter how the market is doing.
Regards
2006-08-12 15:22:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I hope you have a really good real estate attorney and a divorce attorney if things go bad.
If you are planning on flipping a house for pure investment purposes, I would suggest that you either do it as a couple or individually and with only 1 half of the other couple.
It's too much of a headache when you involve 4 people to trying and manage something.
If you do decide to do this as a couples thing, make sure everyone knows and understand what their roles are in this transaction.
2006-08-12 15:53:21 · answer #2 · answered by El_Nimo 3 · 0⤊ 0⤋
Make a good effort to estimate the cost involved in the transaction and the cost of getting it ready for the flip. Multiply those cost by 2. Then do a market analysis to see how long other houses of that type (after the fix up) are on the market, and what they are going for. Multiply the time on the market by 2, and then reduce the going price by about 30%. Most successful "flippers" look at hundreds of properties before they find one suitable for a flip. Plus the real-estate market has slowed way down in most area, and interest rates have ticked up. Proceed with caution. Have an attorney draw up and partnership agreement, before you start to work on this deal.
Good luck.
2006-08-12 13:22:12 · answer #3 · answered by A PC CPA 1 · 0⤊ 0⤋
hang tight if you have to, realestate is always a good idea. Check your area before you purchase, and then estimate how long it will take to flip. I don't like the idea of flipping with another couple. If you have to just do it once. It sucks when you can't agree on things.
2006-08-12 13:59:48 · answer #4 · answered by barbaradjt 5 · 0⤊ 0⤋
My advice: house flipping in the current market = bad idea.
Be prepared to pay the mortgage for a while.
2006-08-12 13:04:29 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Bluntly but seriously speaking, if at this late moment you need to ask that question, you have undertaken an important real estate transaction with risks that your are not prepared for, and you may suffer unwanted consequences. There's a saying in the world of finance and investments: If you don't understand the transaction, don't do it.
2006-08-12 14:24:12 · answer #6 · answered by nothing 6 · 0⤊ 0⤋
Please make sure you cover yourself and have legal papers drawn up on what each person or couple is to get. This way there can be no questions of what monies goes where. I have had both family and friends take advantage of this and it is best to have a contract drawn up, no matter how good the people seem to be.
2006-08-12 16:40:52 · answer #7 · answered by TLC Properties 2 · 0⤊ 0⤋
Have a backup plan. The current housing market is slowing waaay down.
2006-08-12 13:07:45 · answer #8 · answered by Bluealt 7 · 0⤊ 0⤋
take title as one couple as joint tenants as 50% owners as tenants in common with the other couple who are also joint tenants as 50% owners as tenants in common with the first couple.
have a buyout agreement for the inevitable conflicts that may arise
2006-08-12 13:07:17 · answer #9 · answered by Anonymous · 0⤊ 0⤋