Buy recreational land with a partner
I am looking into purchasing a few acres (25-35)to call my own at the beginning of this next year. I have crunched some numbers and its going to be rough to pull together all the green by myself. My buddy and I have long talked about buying land together, but never sat down and talked to anyone about it. I understand that buying land with 2 parties is looked down on for a lot of potential issues that may come up like them not paying their half of the payment, or wanting to sell.. Ect... I get that risk. What I am looking for is the process or steps to get this done. What type of loan will allow two names on the loan, but not a Co Signer type setup? What paperwork would the lawyers need to generate to show 50% ownership to each party? Yearly Taxes? What else am I missing here? Thanks!
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#3 Guru, Book, & Course Reviews Contributor
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Welcome to BP, William.
You posted this as recreational, do you have a business venture in mind, trail riding, shooting range, etc or is this just for your private use?
If it has a business intent, I suggest you consider an LLC. If not you could you might consider a Trust. Using an entity can address all the life issues you might face. Establish a method to sell or buy out the other partner, it could be seller financed or require cash, lots of options.
A bank will make a loan as co-borrowers, jointly and severally liable, not really an issue holding individually in joint tenancy.
I suggest you get with your attorney and get agreements made before you contract and buy. Good luck :)