X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Property-a-holics

    Husband & wife investing with a third person?

    Hi,

    Me and my wife are small property investors, we have a builder who works with us, this time he has asked if he could invest along side with us. What is the best way to buy a property 3 ways? (Shared ownership)

    Regards,

    0
    0

    The immediate answer that springs to mind is a limited company and you allocate the shares accordingly.

    However it depends on the detail of what you're trying to achieve.

    0
    0

    I would be very careful going down this road.

    People who seem perfectly reasonable and rational can suddenly change where money is involved.  I have heard numerous cases where people have fallen out very badly, having previously been good friends.

    Getting involved with a third party can often be a recipe for disaster and people often fall out if interests are not aligned.  You are also financially attaching yourself to someone else.

    I recommend that you watch this video:



    If you must go ahead, I would put the builder on a reward system, so that he gets paid for his work, and, if the project is a success, he gets a percentage of the profit, but you own the property in yours and your wife's name.

    0
    0

    The plan is, me and my wife will buy a property at auction, our builder will renovate and also build a small extension at the property with his own costs. 6 months down the line, we will remortgage (bearing in mind the property is now worth considerably more) .

    Me and my wife will pay ourselves back with the remortgage (from using bridging loans etc), our builder will also be paid back his costs. Now all 3 of us are left with the house with no money owed to each party. We will then let it out together until we decide to sell later at 50/50 split.

    0
    0

    Hi Vanessa,

    We just watched your video on JV’s, and it was very informative, we will now seek further advice with our solicitor. Thank you

    0
    0