Go Back   The Finance Forums > Finance forums > Real Estate



Real Estate Discussions about investing, selling, and buying real estate.

Reply
 
Thread Tools
  #1  
Old 03-16-2011, 10:36 AM
camster39 camster39 is offline
Junior Member
 
Join Date: May 2010
Location: NJ/Bergen+USA
Posts: 6
Default Buying real estate with a group of people

I've been toying with the idea of buying an investment property but I'd like to offload some of the risks. I have a group of 6-10 potential investors (all friends / acquaintances) that are interested.

I could use some direction as to how I should proceed such as:

1 - Do we need to form some type of a corporation with equal ownership and then purchase the property through the corporation?

2 - I understand that there are certain guidelines for calculating rental income, depreciation, tax deductions etc...How would this apply if there are a group of investors?

3 - Would each individual investor have to pickup income each year (similar to an S-Corp) or would the corporation simply pickup the income and pay the associated taxes.

4 - When the property is sold, would the proceeds / profits simply be shared equally amongst investors.

My research to date has detailed how an individual would purchase real estate as an investment -- everything from obtaining a mortgage as an investment property, to writing off improvements and depreciation etc...I can't seem to find anything regarding purchasing real estate with a group of individuals -- similar I guess to REIT's?

Thank you.
Reply With Quote

Old Sponsors
  #2  
Old 03-16-2011, 11:53 AM
DavidBibby's Avatar
DavidBibby DavidBibby is offline
Super Moderator
 
Join Date: Jun 2010
Location: Palm Bay, FL
Posts: 415
Default Re: Buying real estate with a group of people

Camster,

That is an excellent question and although I don't have the answer for you, I hope one of our regular contributors can shed some light on this issue.

Good luck on your endeavor sir!
Reply With Quote

  #3  
Old 03-22-2011, 10:53 AM
joeeastin86 joeeastin86 is offline
Junior Member
 
Join Date: Mar 2011
Location: USA
Posts: 5
Default Re: Buying real estate with a group of people

You should call a consultant!!
Reply With Quote

  #4  
Old 04-07-2011, 10:43 AM
lerrygibson lerrygibson is offline
Member
 
Join Date: Apr 2011
Posts: 44
Default Re: Buying real estate with a group of people

I believe it is necessary to sell it with group by being quite focus with all the people who are into this and doing the things correctly.
Reply With Quote

  #5  
Old 06-07-2011, 02:46 PM
Sk00L Sk00L is offline
Junior Member
 
Join Date: Jun 2011
Posts: 1
Default Re: Buying real estate with a group of people

Myself and my extended family were considering investing a property near a ski resort for rental and personal use.

Everyone is pretty well off and savvy with their personal finance. For the most part we all understand the obligation and trust each other to keep up our ends of the bargain.

I was wondering if anyone had any insight into this type of purchase and could shed some light on the legal responsibilities and possibly provide links or any information sources so I can learn and research as much as possible before taking further steps (in perhaps the wrong direction)...

TY
Reply With Quote

  #6  
Old 06-08-2011, 09:52 AM
littleroc02us littleroc02us is offline
Senior Member
 
Join Date: Mar 2009
Location: Minnesota/United States
Posts: 205
Default Re: Buying real estate with a group of people

Quote:
Originally Posted by camster39 View Post
I've been toying with the idea of buying an investment property but I'd like to offload some of the risks. I have a group of 6-10 potential investors (all friends / acquaintances) that are interested.

I could use some direction as to how I should proceed such as:

1 - Do we need to form some type of a corporation with equal ownership and then purchase the property through the corporation?

2 - I understand that there are certain guidelines for calculating rental income, depreciation, tax deductions etc...How would this apply if there are a group of investors?

3 - Would each individual investor have to pickup income each year (similar to an S-Corp) or would the corporation simply pickup the income and pay the associated taxes.

4 - When the property is sold, would the proceeds / profits simply be shared equally amongst investors.

My research to date has detailed how an individual would purchase real estate as an investment -- everything from obtaining a mortgage as an investment property, to writing off improvements and depreciation etc...I can't seem to find anything regarding purchasing real estate with a group of individuals -- similar I guess to REIT's?

Thank you.
Your forgetting the number thing you should consider, what happens if you lose money or go bankrupt, how will this be handled? Tread very carefully with this idea, because you could lose friends over this deal if it isn't handled correctly.
Reply With Quote

  #7  
Old 06-13-2011, 12:25 AM
chris_m_uk09 chris_m_uk09 is offline
Junior Member
 
Join Date: Jun 2011
Posts: 6
Default Re: Buying real estate with a group of people

i think there is a provision for joint ownership of property u need that i guess
Reply With Quote

  #8  
Old 10-17-2011, 12:00 AM
Bianca_cruz Bianca_cruz is offline
Junior Member
 
Join Date: Oct 2011
Posts: 15
Default Re: Buying real estate with a group of people

agreed with chris their is bound to be a provision for joint ownership like the same case that happened to rhode island DJ

Last edited by Bianca_cruz; 10-17-2011 at 12:13 AM.
Reply With Quote

Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



» Boards




All times are GMT -4. The time now is 03:02 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.