Buying partial ownership in a house?

ddubois · #1 09-20-2005, 04:16 AM

I can't even find any references to this concept on google, except for some timeshare-esque arrangements. I live with my in-laws, in a house they paid for (in full), and the current arrangment is that we pay all the monthly bills, property taxes, etc, but otherwise pay no rent. It's a very sweet deal for us, but they like it too becuase they get grandkids around 24/7.

Anyway, they want to borrow money to travel and stuff. Rather than take out an equity line of credit/loan they want to borrow from us, with the idea "they'll pay us back when they sell, plus interest". My wife has a really bad history when it comes to lending money to various family members, and my policy is "Don't lend to F&F what you can't write off". Well, I can't write off $20K.

So my idea was, rather than a loan and all it's problems, we get some legal document that says we are buying X% of the house for $Y, with some stipulation that when it's sold we get X% of the proceeds. I figure this is a good investment anyway with real-estate being real-estate and this market contniually going up, so it's win-win.

Good idea? Bad idea? Rife with all the same problem that lending money would have?

PS: Here's a picture of some hot chicks:

Duke · #2 09-20-2005, 04:26 AM

A single hot chick:

~D

edfurlong · #3 09-20-2005, 04:45 AM

I can think of one way this could go as planned and about twenty that it wouldn't.

ChipWrecked · #4 09-20-2005, 04:48 AM

Sounds similar to a reverse mortgage to me. With a real estate lawyer involved to cover the details, I think it's a win/win deal.

ddubois · #5 09-20-2005, 02:40 PM

[ QUOTE ]
I can think of one way this could go as planned and about twenty that it wouldn't.

[/ QUOTE ]
Can you list some of the ways? I want to know if my concerns match yours or if there are worse things I'm not thinking of.

Bluffoon · #6 09-20-2005, 02:53 PM

You are totally and completely screwed. You accepted a "sweet" deal and now the payment is due. Loan'em the money and move out immediately.

imported_The Vibesman · #7 09-20-2005, 03:02 PM

[ QUOTE ]

PS: Here's a picture of some hot chicks:

[/ QUOTE ]

Uhhh...NSFW?

Sorry, I have no idea whether or not you can legally do this, although I imagine you would just be buying an equity stake....I wanted to do that joke.

cbfair · #8 09-20-2005, 03:06 PM

Start here This may give you some idea what the legal arrangements would look like. I have no idea how you would arrange financing in your situation but I'm sure you could find someone to do it.