abundantone10922Participant@abundantone10922Join Date: 2003Post Count: 9
Some friends and I are looking to buy a property together (long term hold) with a reno to rent strategy. I’d love to know what your thoughts are on the structure/entity we should consider purchasing it in? Is there anyone out there that lives and breaths this stuff and is happy to share?
Thanks 😊TerrywParticipant@terrywJoin Date: 2001Post Count: 16,190
I have 2 separate clients at the moment who are being held back because of joint purchases with others.
You should seek specific legal advice – from a lawyer – but something that can work in some cases is buying in single names with the other lending the deposit. After a while this will quickly eat up borrowing capacity and then going in together in a way that allows easy exit later but joint income for borrowing capacity now can work.
Depending on the location of land this could be a fixed unit trust or even 2 discretionary trusts holding the one property. Companies can be considered too in some states.
Best to seek specific advice