All Forum Posts by: Brian Fabel

Update here. It looks like potential partner would in with ~20% value in cash, not 33%.

We also would look at doing an addition to the home in 1 year for now, valued at around ~$100k.

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Quote from @Celine Crestin:

I would advise you contact a real estate attorney. There are a variety of ways to structure his ownership interest, but how to handle his funds after the fact creates another factor.

Thanks, Celine. What would some of those structure of ownership interest be? (Asking just in general, not for advice On what would be best)

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Quote from @Mark Doppe:

I don't know your local laws, but in WA, changing ownership (i.e., new LLC, modifications that have a significant change of control, etc.) can trigger a Washington state real estate transfer tax. Depending on your locale, this can be expensive. (It runs 1.78% of sale price in WA).

Thanks, Mark. Something worth considering for sure!

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Quote from @Jim Pellerin:

Is his investment, debt or equity. What is he looking for in return for his investment. If he is just looking for an equity position or is it a loan? What's interesting is you put in 20% but get back 33%. So you were able to pull all your money out or more. The challenge will be if you have to service a debt.

Equity. And use of the house when we are using it for our recreation interest (~3 months of the year in off-pear season).

We have not done any partnership deal yet, so all of this is hypothetical.

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Quote from @Nathan Gesner:

Quote from @Brian Fabel:

My first question: why?

You already found the property and purchased it. His money isn't necessary, so I don't see the benefit in partnering on this deal. I would consider using his money to purchase a second property. That one could be under an LLC or some other entity with a written agreement that spells out responsibilities, profit splits, etc.

Time to talk to an attorney.

My sense is that he is only interested in this specific property because of the shared recreation interest, and would not be as interested in other properties. But your point is well taken.

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We (my wife and I) had been looking for a partner to go in on a property, but couldn’t find one, so moved forward; we made an offer on a second home that we will also use for AirBnb short term rental when not using ourselves in a market 2 hours away that we visit often for recreation.

we have just closed, and now we have a friend who has offered to go in on the deal. What are some ways that we can bring him in? How can we structure? Can we do it without modifying our mortgage and just adjust ownership stake and receive his cash on the side? Do we neeed to notify the deed or can it just be drawn up with an agreement by lawyer?

Our potential partner is coming in with ~1/3 of total value in cash. We did 20% down on the close.

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All Forum Posts by: Brian Fabel

Brian Fabel has started 6 posts and replied 16 times.

Post: Partnership after closing? Can it be done?

Post: Partnership after closing? Can it be done?

Post: Partnership after closing? Can it be done?

Post: Partnership after closing? Can it be done?

Post: Partnership after closing? Can it be done?

Post: Partnership after closing? Can it be done?