Hello all,
I am looking at buying a chunk of property with a trusted friend. I understand those risks and am willing to assume them.
We plan on drawing up and signing a contract to cover the details, and I’m curious if anyone has experience with that and can help point me in the right direction. We will use a lawyer, I just want to have a good game plan going in.
Details: I will purchase the land at 50% down. Both of us will be on the title. Both of us will co-sign the loan for the remaining amount. Both of us will make payments on principle, interest, and other expenses until the title is in our hands, at which point he will make payments to me until he owns 50%, at which point we plan on subdividing the lot and having individual titles.
If he has to back out, I can cover the full payments and wouldn’t mind owning the whole chunk of land, so there is low risk on my end. I understand there may be some risk of co-signing (tho like I said, I can cover the payments in full, even if he can’t contribute for whatever reason), and I understand there is some risk to me from both of us being on the title. This isn’t intended to be a discussion of “don’t do business with your friends,” I’m merely looking for guidance on drawing up a contract and making sure that my (our) bases and backs are covered and we are doing our due diligence.
Thanks!
I am looking at buying a chunk of property with a trusted friend. I understand those risks and am willing to assume them.
We plan on drawing up and signing a contract to cover the details, and I’m curious if anyone has experience with that and can help point me in the right direction. We will use a lawyer, I just want to have a good game plan going in.
Details: I will purchase the land at 50% down. Both of us will be on the title. Both of us will co-sign the loan for the remaining amount. Both of us will make payments on principle, interest, and other expenses until the title is in our hands, at which point he will make payments to me until he owns 50%, at which point we plan on subdividing the lot and having individual titles.
If he has to back out, I can cover the full payments and wouldn’t mind owning the whole chunk of land, so there is low risk on my end. I understand there may be some risk of co-signing (tho like I said, I can cover the payments in full, even if he can’t contribute for whatever reason), and I understand there is some risk to me from both of us being on the title. This isn’t intended to be a discussion of “don’t do business with your friends,” I’m merely looking for guidance on drawing up a contract and making sure that my (our) bases and backs are covered and we are doing our due diligence.
Thanks!
Statistics: Posted by moximouse — Thu Apr 18, 2024 12:34 pm — Replies 4 — Views 336