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Buying a Property question

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  1. ImaBustYou ImaBustYou is offline

    Milwaukee, WI
    United States

    Posts: 1,793
    Joined: Sep 07

    May 2nd, 2010 (5/2/2010 10:28pm)

    I am buying a condo with a friend of mine. I am putting down $12k while he is putting down $7k...when we sell the place in 3+ years, how much MORE money would I get back (%age wise)?

    $175k condo

    $12k down payment (me)
    $7k down payment (friend)

    Because I put more $ down up front, my equity increases...

    any help would be much appreciated!
  2. TC_Clueless TC_Clueless is offline

    Columbia, MO
    United States

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    Joined: Jan 07

    May 2nd, 2010 (5/2/2010 10:30pm) in reply to ImaBustYou

    probably a safe bet that if you're asking OT for real estate advice you're about to take a bath on that deal.
     
  3. norcaljeff norcaljeff is offline 2010 OT Thread Kill Leader

    San Francisco, CA
    United States

    Posts: 36,709
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    May 2nd, 2010 (5/2/2010 10:30pm) in reply to ImaBustYou

    since this will end in disaster does it really matter?
  4. saxman saxman is online now

    Posts: 14,155
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    May 2nd, 2010 (5/2/2010 10:32pm) in reply to ImaBustYou

    roughly 2.5% more
  5. wei000 wei000 is offline

    China

    Posts: 91
    Joined: Jul 09

    May 2nd, 2010 (5/2/2010 10:33pm) in reply to ImaBustYou

    50/50 either you sell it in 3+ years or you don't
  6. Ugot2BKddn Ugot2BKddn is offline

    Sterling, VA
    United States

    Posts: 820
    Joined: May 07

    May 2nd, 2010 (5/2/2010 10:39pm) in reply to ImaBustYou

    "that depends"

    Real estate contracts must be in writing to be enforceable.

    Are you buying this property with the understanding you'll be paying a greater % of expenses as well?

    If it's just the down payment, sounds like you should get the difference in down payment back upon liquidation and then split remaining proceeds (if any) 50/50.

    (Assuming you are sharing equally all other expenses. ie. condo fees, utilities, repair & maintenance, insurance, property tax, etc. Oh, and don't forget. Because this is a condo, there could be a *special* assessment. Will you be paying a greater %? or splitting 50/50?) ((special assessment example - say the community center (if applicable) has a major issue and needs to be repaired. If there is not enough $ in reserves, each and every unit may receive a one-time special assessment to cover the unanticipated cost)

    Hope that helps...and good luck.

    Whooops.. did i mention... get everything in writing? ::)
  7. dolphin13 dolphin13 is offline OT Vice MVP

    Chicago, IL
    United States

    Posts: 23,740
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    May 2nd, 2010 (5/2/2010 10:42pm) in reply to Ugot2BKddn

    Hey OP, this is one of those moments where you need to take out your camera and take a picture of the OP so when friends and family ask you down the line "Where'd things go wrong?" you can show them the picture.
  8. bluefin bluefin is offline

    Apo, AE
    United States

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    May 2nd, 2010 (5/2/2010 10:45pm) in reply to ImaBustYou

    Who says your going to have any equity in 3 years?
  9. BigGunX BigGunX is offline Mr OT Party

    Williamsburg, VA
    United States

    Posts: 21,287
    Joined: Feb 05

    May 2nd, 2010 (5/2/2010 10:45pm) in reply to Ugot2BKddn

     
    Originally Posted by Ugot2BKddn View Post

    "that depends"

    Real estate contracts must be in writing to be enforceable.

    Are you buying this property with the understanding you'll be paying a greater % of expenses as well?

    If it's just the down payment, sounds like you should get the difference in down payment back upon liquidation and then split remaining proceeds (if any) 50/50.

    (Assuming you are sharing equally all other expenses. ie. condo fees, utilities, repair & maintenance, insurance, property tax, etc. Oh, and don't forget. Because this is a condo, there could be a *special* assessment. Will you be paying a greater %? or splitting 50/50?) ((special assessment example - say the community center (if applicable) has a major issue and needs to be repaired. If there is not enough $ in reserves, each and every unit may receive a one-time special assessment to cover the unanticipated cost)

    Hope that helps...and good luck.

    Whooops.. did i mention... get everything in writing? ::)

    Really?

    I found this house I want that's $500k. I'll put down $5k and you put down $100k.

    When it's worth $600k in 3 years, you should just get your $100k back, I'll get my $5k back, and then we'll split the $100k profit 50/50.

    Does that seem fair to you? Oh, but we're splitting monthly expenses evenly, so it's fair...
     
  10. Ugot2BKddn Ugot2BKddn is offline

    Sterling, VA
    United States

    Posts: 820
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    May 2nd, 2010 (5/2/2010 10:50pm) in reply to BigGunX

     
    Originally Posted by BigGunX View Post

    Really?

    I found this house I want that's $500k. I'll put down $5k and you put down $100k.

    When it's worth $600k in 3 years, you should just get your $100k back, I'll get my $5k back, and then we'll split the $100k profit 50/50.

    Does that seem fair to you? Oh, but we're splitting monthly expenses evenly, so it's fair...

    Absolutely... did you take your finger out of your eye to read the entire post?

    Yes, it's quite fair. If that's what we agreed to. Now, am I dumb enough to put down 100K to your 5K...ummm.. lemmie think... NO... but, if you are putting down 90K and i'm dropping 100K... we're friends.. it's in writing.. and we're splitting all related expenses... yep, i'm good with that.

    You are just bein' stupid with your unreasonable example.
  11. ImaBustYou ImaBustYou is offline

    Milwaukee, WI
    United States

    Posts: 1,793
    Joined: Sep 07

    May 2nd, 2010 (5/2/2010 10:51pm) in reply to Ugot2BKddn

     
    Originally Posted by Ugot2BKddn View Post

    "that depends"

    Real estate contracts must be in writing to be enforceable.

    Are you buying this property with the understanding you'll be paying a greater % of expenses as well?

    If it's just the down payment, sounds like you should get the difference in down payment back upon liquidation and then split remaining proceeds (if any) 50/50.

    (Assuming you are sharing equally all other expenses. ie. condo fees, utilities, repair & maintenance, insurance, property tax, etc. Oh, and don't forget. Because this is a condo, there could be a *special* assessment. Will you be paying a greater %? or splitting 50/50?) ((special assessment example - say the community center (if applicable) has a major issue and needs to be repaired. If there is not enough $ in reserves, each and every unit may receive a one-time special assessment to cover the unanticipated cost)

    Hope that helps...and good luck.

    Whooops.. did i mention... get everything in writing? ::)

    all expenses will be 50/50...condo fees, taxes, cable/internet, water, insurance, utilities, etc...

    I'm just putting more $ down because I have more saved up.

    I think that saxman was correct when he said that I will just get 2.5-3% more of the selling price when that time comes up.

    Thanks for the info though, and I will definetly get everything in writing/documented for bouth of our safeties!
    Thread Starter
  12. ImaBustYou ImaBustYou is offline

    Milwaukee, WI
    United States

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    May 2nd, 2010 (5/2/2010 10:54pm) in reply to bluefin

     
    Originally Posted by bluefin View Post

    Who says your going to have any equity in 3 years?

    Assuming that I will!
    Thread Starter
  13. ImaBustYou ImaBustYou is offline

    Milwaukee, WI
    United States

    Posts: 1,793
    Joined: Sep 07

    May 2nd, 2010 (5/2/2010 10:56pm) in reply to dolphin13

     
    Originally Posted by dolphin13 View Post

    Hey OP, this is one of those moments where you need to take out your camera and take a picture of the OP so when friends and family ask you down the line "Where'd things go wrong?" you can show them the picture.

    Yea, thats what my brother said to me! But I have seen it work w/my own two eyes...So I am optimistic and see it as a good opportunity!
    Thread Starter
  14. Ugot2BKddn Ugot2BKddn is offline

    Sterling, VA
    United States

    Posts: 820
    Joined: May 07

    May 2nd, 2010 (5/2/2010 10:59pm) in reply to ImaBustYou

     
    Originally Posted by ImaBustYou View Post

    all expenses will be 50/50...condo fees, taxes, cable/internet, water, insurance, utilities, etc...

    I'm just putting more $ down because I have more saved up.

    I think that saxman was correct when he said that I will just get 2.5-3% more of the selling price when that time comes up.

    Thanks for the info though, and I will definetly get everything in writing/documented for bouth of our safeties!

    As previously stated, get "agreed upon" terms in writing and the end result may not be as bad as the doom n' gloom seers foresee.

    GL and congrats~
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  15. 93-97___60-3 93-97___60-3 is offline

    Port Saint Lucie, FL
    United States

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    May 2nd, 2010 (5/2/2010 11:00pm) in reply to ImaBustYou

    I would think that you should get back whatever % you've each put into the place at the time of sale.

    So, for example, if you split everything 50/50 after the down payment until the time of sale you would get back the following............

    You: 12K down + 20K mortgage payments, fees, costs, etc... (made up #) = 32K

    Him: 7K + 20K = 27K

    You get back 32/59 of the sale price.
  16. emcee21 emcee21 is offline

    Orlando, FL
    United States

    Posts: 15,891
    Joined: Feb 06

    May 2nd, 2010 (5/2/2010 11:10pm) in reply to ImaBustYou

    You may have trouble getting financing for a condo with that little down. < 20% down you need PMI, and it's very hard to get on condos these days. Granted, FL may just be in worse shape than other places.
  17. okse54 okse54 is offline

    New York, NY
    United States

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    May 2nd, 2010 (5/2/2010 11:10pm) in reply to ImaBustYou

    i think it all depends on how ur splitting the monthly payments and how much has been paid when ur finally looking to sell
     
  18. OldGrowth OldGrowth is offline

    Woodinville, WA
    United States

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    May 3rd, 2010 (5/3/2010 12:09am) in reply to BigGunX

     
    Originally Posted by BigGunX View Post

    Really?

    I found this house I want that's $500k. I'll put down $5k and you put down $100k.

    When it's worth $600k in 3 years, you should just get your $100k back, I'll get my $5k back, and then we'll split the $100k profit 50/50.

    Does that seem fair to you? Oh, but we're splitting monthly expenses evenly, so it's fair...

    No shit. Exactly what I was thinking. Good call BGX
  19. MiamiNole MiamiNole is offline

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    May 3rd, 2010 (5/3/2010 12:15am) in reply to ImaBustYou

    condos on the gulf coast are about to take off, specifically al, la and the fl panhandle.. prolly will double your investment if you get in quick

    so roughly 100%

    gl
  20. Spiltbongwater Spiltbongwater is offline

    Coquitlam
    Canada

    Posts: 1,661
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    May 3rd, 2010 (5/3/2010 12:16am) in reply to 93-97___60-3

    What is the am on the mortgage? If it is for 30+ years, then the bulk of the mortgage payments will be interest. Only equity will be from asset appreciation, and I don't see that happening to greatly. Just be happy if you get your 12K back. GL though
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