These are people who contribute the max to their 401Ks and divert X amount of each paycheck into generic "well diversified portfolios".  

They may have already contributed and received matching funds from their employer for 30 years. 

I would think it'd be one thing to make capital contributions to the business account from your personal account, as well as making distributions in the opposite direction, but clearly funneling rent checks through your personal account into the business account would be very different.

However, this maximum contribution increases with inflation.  

A sincere thank you for all who contributed, really appreciate your opinions.  

Hi @Talford Thompson, and welcome.The $14k from each parent plus your own contribution is sufficient to purchase the property outright, or you're in need of a traditional mortgage too?

I thought I understood how fractionalized notes work but after reading this thread I’m not sure anymore.I know in CA there is a law, a specific statute, that specifies exactly how a fractionalized note is done.The authority is given only to a licensed real estate broker, requires reporting to the BRE, limitations on how many beneficiaries can participate, the maximum amount they can contribute based on their net worth, etc.I know the reason the statue exists is to provide an SEC exemption exclusive to CA RE brokers.Bringing more than one person together on one note is considered a security thus requiring a SEC license or exemption.So, does this mean that if two guys want to buy a note together and put their name (or their entities’ name) on the note (and DOT) as joint owners that they need to get a broker involved?

Even those calculators online do not all reflect the tax benefits of buying vs renting.Other contributing factors are the convenience of renting.

Thanks so much, and looking forward to leveraging, and contributing experiences to the forum.Chris  

My understanding is that you can withdraw any contributions you made to the account without any fees or penalties since you've already paid taxes on those as personal income.