Renters Pooling Together to Buy Share of Property

[Chris Fox]

Hello,

I live in the Bay Area and rent with 5 other tenants. The property is owned by a family with three siblings each with an equal 1/3 share. One of the brothers wants to sell his share.

We (tenants) have begun discussing making a bid to buy out the brother's 1/3 stake in the property. At least 3 tenants are interested in making an offer.

How would we go about making a legitimate offer? Would we group together as an LLC? Would we apply for 3 separate mortgages?

I can think of plenty of Cons in this situation but this is in a prime Bay Area so I want to see how feasible this is.

Appreciate any feedback. 

[Robert Musallam]

@Chris Fox

It may be dicey to buy out 1/3 with 3 partners. It just seems like a nightmare waiting to happen down the line. 

If there's 3 of you wanting to buy something, why not buy a property for yourselves without the other 2/3 being owned by someone else?