Any of you in Partnerships on Vacation Homes?

[ArizonaKevin]

My future brother-in-law is looking to purchase a property in the havasu area and is wondering if my fianc? and I would go in on it with him. Has anyone done this before? Success stories? Horror stories?

I think it could work in theory but having such a major financial investment with family makes me nervous.

 

[t&y]

My future brother-in-law is looking to purchase a property in the havasu area and is wondering if my fianc? and I would go in on it with him. Has anyone done this before? Success stories? Horror stories?

I think it could work in theory but having such a major financial investment with family makes me nervous.

The only way I would do that is with a property manager handling everything. Wife has three siblings with property left to them by the parents. It's been a total pain in the ass with one of them. Only thing keeping it going is a property manager to ensure everything is even. Sad, but doing business with family is generally more of a pain in the ass IMO.

 

[hallett21]

One of you will take care of the property better than the other. I like the idea of having an impartial property manager.

 

[Done-it-again]

My wife's family had shared a house for 20+yrs. They made it work and it worked well, but it had strict rules.

just a few of the rules

House was cleaned and laundry was done and beds made before leaving.
No out side friends or family can stay without one of couples were present
No kids of the owners could stay with out their parents
Things were fixed and split down the middle.

They now both own their own place, as throughout the years family's have gotten bigger.

 

[RiverDave]

A property manager or at a minimum having a cleaning person that comes after every usage is mandatory. This could be a great thing, or it could be the thing that blows apart your family. Personally I wouldn't do it unless the guy is the super laid back type.

 

[ArizonaKevin]

A property manager or at a minimum having a cleaning person that comes after every usage is mandatory. This could be a great thing, or it could be the thing that blows apart your family. Personally I wouldn't do it unless the guy is the super laid back type.

That is exactly what I am trying to avoid. He is actually pretty OCD about cleanliness and so am I so we are on the same page there. Definitely think an LLC and a property manager would be a minimum.

 

[AzGeo]

Go on your own; financing, choices, repairs/up grades, rental options, wins and losses ..........

 

[mbrown2]

I have owned a river place with my best friend for 16yrs....we are still best friends. No property management company....we just take care of it...Motto about everything....bring a little, use a little, leave a little has worked for us. After a big weekend we just have a maid service come. I am married no kids, he has a girl friend no kids. We allow family members and real close friends to use when we are not there...but we know these people and they know our river house...what goes and what does not. We don't rent it when it is empty. We split everything 50/50...when the roof leaks, when things need to be replaced, new windows, stucco, boat breaks, stereo upgrades, everything... We try and talk each year about what needs fixing and put money aside to do so and get it done. I always thought about purchasing my own...but cannot justify it. I go there 10-15 times a year, heck lately it has been 5-8 times. I would not want to tie up that kind of money into a place that sits empty without renting and we bought it with the intent to never rent.

 

[BHC Vic]

My wife and I are partners w my parents. Works out great for us

 

[Rvrluvr]

Growing up i had a friend whos parents were 1/3 partners in a house. I always liked the arrangement. It was made very clear to all of us guests:

Only allowed to use his parents room.
Leave no perishables in house
Clean before you leave

The other 2 room were never touched. It left a bit of privacy to the other owners 👍

 

[steak&lobster]

My wife and I are partners w my parents. Works out great for us

what about for them???

 

[Bigbore500r]

We have our riverhouse in an LLC with partners. Home title is held in LLC. It's ran like a business, dedicated accounts, etc. We have a cleaning service that comes after every renter, does a full cleaning, and reports if there is any damage or if something needs attention. I handle the rentals myself, but for most I imagine a property manager would be desired. I work my ass off on it, but I enjoy it.

 

[RiverDave]

That is exactly what I am trying to avoid. He is actually pretty OCD about cleanliness and so am I so we are on the same page there. Definitely think an LLC and a property manager would be a minimum.

Speaking honestly, I'm not sure that I'd do it if I was you. If you do, go into it saying (on paper) that if one of you is unhappy that you will sell the home for Market value and cash out with no hard feelings. If it goes to the "sell the home to the partner" route then invariably the values are going to be "different" from buyer to seller. etc..

I have owned a river place with my best friend for 16yrs....we are still best friends. No property management company....we just take care of it...Motto about everything....bring a little, use a little, leave a little has worked for us. After a big weekend we just have a maid service come. I am married no kids, he has a girl friend no kids. We allow family members and real close friends to use when we are not there...but we know these people and they know our river house...what goes and what does not. We don't rent it when it is empty. We split everything 50/50...when the roof leaks, when things need to be replaced, new windows, stucco, boat breaks, stereo upgrades, everything... We try and talk each year about what needs fixing and put money aside to do so and get it done. I always thought about purchasing my own...but cannot justify it. I go there 10-15 times a year, heck lately it has been 5-8 times. I would not want to tie up that kind of money into a place that sits empty without renting and we bought it with the intent to never rent.

Laid back guys with a bazillion years at the river together and similar mindsets.. It's not hard to understand how your program functions so well.

RD

 

[RiverDave]

what about for them???

Met his dad at Rob's BBQ, and he seemed very happy with his son / family / and partnership. Talked to him for a little bit about all kinds of stuff, nice guy.

RD

 

[Bobby V]

That is exactly what I am trying to avoid. He is actually pretty OCD about cleanliness and so am I so we are on the same page there. Definitely think an LLC and a property manager would be a minimum.

Why do you need a property manager. Do you plan on renting the house?

 

[Cole Trickle]

I think it could be done but 50% of the time it's going to be a problem.

I have very few people I would consider buying a piece of property with. You are talking a very long commitment and shit can go sideways pretty fast.

Divorce
Kids
Loss of income
Usage
Cleanliness
Maintenance
Etc....

If you both walk in with equal down payments and a contract that handles alot of these items I think it could work......I would want a buy out clause and that can get sticky when that kind of $$ is involved.

 

[HavasuHank]

Have a family cabin in Big Bear for the past 5 years or so. It gets rented when we aren't there, and my brother handles that.

Whenever we want to go, I give him plenty of notice ... caused the majority of the time, the cabin is booked.

I've had people ask me if the cabin is available. The problem is they ask like 3 days before wanting to go lol ... its been booked for the past month or two!! Lol.

There is a cleaning crew that shows up after every booking to clean up and wash the sheets ... shit like that.

It's a pretty good agreement we all have.

 

[ArizonaKevin]

Why do you need a property manager. Do you plan on renting the house?

Ideally we would find a snowbird to take it in the winter.

Thanks for the recommendations everyone keep it coming!

 

[BHC Vic]

what about for them???

What about them? They are happy as shit to have successful kids and beautiful grand kids to hang out at the river with. What exactly are you asking?

 

[steak&lobster]

What about them? They are happy as shit to have successful kids and beautiful grand kids to hang out at the river with. What exactly are you asking?

Hit a nerve huh? Don't be so thin skinned

 

[Bobby V]

Ideally we would find a snowbird to take it in the winter.

Thanks for the recommendations everyone keep it coming!

I have used property managers with my snowbirds. I quit when I found my own snowbird and save the 12% commission they charge. I know enough people in Havasu on who to call if I need something fixed while he is there. My neighbors use VRBO to get their snowbirds.

 

[Singleton]

Don't do it, unless through a LLC with a property Mgmt company.
I am part owner in my family's cabin in WI. My moms grandparents built it in 1913. I own 25%, my mom owns 25%, and my uncle owns 50%. My mom and uncle received 50% each when their parents passed. I purchased my percentage from my mom when she needed $$, because my uncle would not buy her out. Biggest PIA. My uncle will not sell me his share for 50% market value (wants 100%), but has only offered 25% of market to buy my mom and me out.
I thought the family was strong, but once $$ gets involved family members can be a PIA.

 

[RCDave]

I would never do it. Don't mix business with pleasure.

 

[boatdoc55]

Don't do it!!! In all my years, partnerships have NEVER worked out for 100's of reasons and many unexpected ones.

 

[BHC Vic]

Hit a nerve huh? Don't be so thin skinned

You hit a nerve a while back. I don't like you. I hope I never run into you for both our sake 😬

 

[Sleek-Jet]

My future brother-in-law is looking to purchase a property in the havasu area and is wondering if my fianc? and I would go in on it with him. Has anyone done this before? Success stories? Horror stories?

I think it could work in theory but having such a major financial investment with family makes me nervous.

It's like a marriage, so someone is going to get fucked. : D

My advise is sit down and hash out an exit agreement. Somehow everyone needs to be able to get out without everyone else being pissed off, because like someone else said, life can go sideways pretty quick.

So talk to a lawyer about different ownership structures and how to essentially set up a corporation.

 

[milkmoney]

Never do buisness with family, if you do you better cover ur ass, if i had any family I wouldn't do it. I like things my way and an willing to pay for it by myself
[emoji482] [emoji202]

If you do , good luck to and hope it works in ur favor

 

[steak&lobster]

You hit a nerve a while back. I don't like you. I hope I never run into you for both our sake 

why? are you going to start a fight with me? let's get your threats/warnings out here

 

[ArizonaKevin]

You hit a nerve a while back. I don't like you. I hope I never run into you for both our sake 

Please take whatever issues you guys have to another post. Thank you.

 

[LargeOrangeFont]

Might a duplex be an option?

Go in 50%, each family gets a "side".

 

[2Driver]

Youd be better off just throwing cash at a vrbo home when you want to go to the river.

Unless you go ALOT Add it up its probably cheaper and you have the freedom.

 

[Sleek-Jet]

VRBO?

 

[LargeOrangeFont]

VRBO?

VRBO, HomeAway, AirBNB. All short term vacation rental sites/Apps.

 

[Bigbore500r]

Have a family cabin in Big Bear for the past 5 years or so. It gets rented when we aren't there, and my brother handles that.

Whenever we want to go, I give him plenty of notice ... caused the majority of the time, the cabin is booked.

I've had people ask me if the cabin is available. The problem is they ask like 3 days before wanting to go lol ... its been booked for the past month or two!! Lol.

There is a cleaning crew that shows up after every booking to clean up and wash the sheets ... shit like that.

It's a pretty good agreement we all have.

Same here. Everyone wants to go with 2 days notice

 

[DWC]

My future brother-in-law is looking to purchase a property in the havasu area and is wondering if my fianc? and I would go in on it with him. Has anyone done this before? Success stories? Horror stories?

I think it could work in theory but having such a major financial investment with family makes me nervous.

I'd get uncle Matt to buy in.

 

[grumpy88]

I couldn't imagine it working . To many variables to go wrong . Everything has to go right for it to work and only one thing needs to wrong for it to turn into a mess .

 

[Riverbound]

We own multiple properties as a family 1/3 owners between each family.

Two vacation homes and Multiple rental properties. It's an absolute fucking nightmare! We are no longer buying shared properties and are in the process of selling trading all the properties. Unfortunately it just doesn't work long term

 

[G. Faulk]

I've been lucky, My father in law is 50% partner in our Havasu house. He works on it as much as I do and thats key. He's a lot more messy then I and when he leaves he does his best to clean. I still have the house cleaner do a service when he leaves as well as I, sometimes I don't tell him. I just eat it not to hurt his feelings. I will admit sometimes its hard but we let my wife, his daughter, run the finances of the house.

We've had the same snow bird for 7 years works awesome, and him and I have owned the house for 9 years. We do not rent to the summer crowd. If your building, the house I strongly suggest to make two master bedrooms. I really cant tell you why but it helped a lot with our venture. He's got his space I have mine.

We've been talking about selling, markets good take the money and run, but he loves the place so much I cant take it out from him. For the right two partners it can work, but I can also see it going sideways quickly.

 

[GRADS]

What ever happened to the Texas Buyers Club?

 

[Bobby V]

What ever happened to the Texas Buyers Club?

Dallas Buyers Club

 

[ArizonaKevin]

I'd get uncle Matt to buy in.

He's got big $$$ tied up in his new vacation house in Idaho!

 

[Kailuaboy89]

Get the manager in the middle, I had a house partner that sucked, didn't care about shit, and had a gambling problem I didn't know about. I got out of it in 2015, and she screwed me out of $6200. lesson learned, and never again. I will own one on my own one day, done deal.

 

[Jed-O]

I have owned a river place with my best friend for 16yrs....we are still best friends. No property management company....we just take care of it...Motto about everything....bring a little, use a little, leave a little has worked for us. After a big weekend we just have a maid service come. I am married no kids, he has a girl friend no kids. We allow family members and real close friends to use when we are not there...but we know these people and they know our river house...what goes and what does not. We don't rent it when it is empty. We split everything 50/50...when the roof leaks, when things need to be replaced, new windows, stucco, boat breaks, stereo upgrades, everything... We try and talk each year about what needs fixing and put money aside to do so and get it done. I always thought about purchasing my own...but cannot justify it. I go there 10-15 times a year, heck lately it has been 5-8 times. I would not want to tie up that kind of money into a place that sits empty without renting and we bought it with the intent to never rent.

We pretty much do the same. Everything is split 50/50, if something breaks or fails, fix it. don't bring assholes. clean up after yourself. if you use something , replace it. and above all, COMMUNICATE.:thumbsup

 

[WavetoWave]

My future brother-in-law is looking to purchase a property in the havasu area and is wondering if my fianc? and I would go in on it with him. Has anyone done this before? Success stories? Horror stories?

I think it could work in theory but having such a major financial investment with family makes me nervous.

Your instinct is correct. Most of the time it is a nightmare and complicated as time goes on.

 

[NicPaus]

Take into consideration who they are with? single? Possible future spouse might be issue. I had a Partner at 1 point ended up buying own place same park. I could not handle his wife as a partner get along great as friends and neighbors. Hard for them to justify it though as they do not go out as often. Had to do mainly with pets being brought which I never thought of before hand.



I am in similar boat now, thinking of business partnership but have seen so many fail. Pops lost everything few years back from a partner but there is a lot of potential in my industry. I just don't have the capital to bank.

 

[Ziggy]

My dad long ago advised me in business that I took to heart, and a venture like this is business.
He always told me, "A castle can only have one King".
Clear as day to me.[emoji4]

 

[DLC]

My dad long ago advised me in business that I took to heart, and a venture like this is business.
He always told me, "A castle can only have one King".
Clear as day to me.[emoji4]

I was always taught that

A Partnership is the worst ship afloat!

Now that's boating content!

However,
you could always set up your rules/ guide lines and then have a sunset clause ( sell off ) say 3 years and then you sell it off or renew your partnership for say another 3 years, might even work out as a small investment and you make some money rather than paying for some body else's nut.

To me it's also something to think about how much of a house do you think you want to buy? If you keep your payment about $1,200 +/- a month or $600 each split that's like one trip a month renting a VRBO or something. How much do you think both of you spend monthly to go out? Keep your commitment close to that.

It seems like most of the negative experiences are from lack of planning or it was a sort of inherentance and your stuck with what ya got deal, if it's planned out and you both agree and you can afford it give it a shot!

Go for it and good luck!

It is really awesome to have your own slice of heaven, and have Your stuff in your own place

 

[Cole Trickle]

I was always taught that

A Partnership is the worst ship afloat!

Now that's boating content!

However,
you could always set up your rules/ guide lines and then have a sunset clause ( sell off ) say 3 years and then you sell it off or renew your partnership for say another 3 years, might even work out as a small investment and you make some money rather than paying for some body else's nut.

To me it's also something to think about how much of a house do you think you want to buy? If you keep your payment about $1,200 +/- a month or $600 each split that's like one trip a month renting a VRBO or something. How much do you think both of you spend monthly to go out? Keep your commitment close to that.

It seems like most of the negative experiences are from lack of planning or it was a sort of inherentance and your stuck with what ya got deal, if it's planned out and you both agree and you can afford it give it a shot!

Go for it and good luck!

It is really awesome to have your own slice of heaven, and have Your stuff in your own place

Havasu might be close to the top value wise....we have zero clue what the RE market is going to do.

Imagine getting into a partnership on a 350K house only to have it loose 100K in value and your partner loose there job. You are basically stuck and chained to a sinking ship.

It could work..... The Clippers could also win the NBA championship this year:skull

 

[Bigbore500r]

Theres lots of cons, but lots of pros to having a partership. The cons are openly apparent and have been discussed, and if you wanted to you can cook up 500 more reasons not to do it.

Here are some of the Pro's -

-Potential to own obtain a home or property that would otherwise be unobtainable, or larger than you would be comfortable doing solo.
-Spread initial investment
-Spread operating and maintenance costs
-Limits liability to your portion of investment (yes...it is possibly YOU could be the defaulting party!)
-Delegate duties for operating / maintaining the property
-If its a vacation property, chances are there is plenty of time the property is empty and not in use by you. if the partner goes on their own time (you don't share the time) it can have minimal impact on your ownership experience (with the right partner).

You have to be upfront about the pitfalls with your prospective partner(s) and be pro-active. Don't assume anything, get it laid out and have a well oiled plan. Yes, there is are a thousand ways a partnership can go bad, but if you look around the good ole USA many of the awesome places you see were built and are operated thru partnerships. There are only so many Bill Gates / Mark Zuckerbergs

 

[LargeOrangeFont]

Havasu might be close to the top value wise....we have zero clue what the RE market is going to do.

Imagine getting into a partnership on a 350K house only to have it loose 100K in value and your partner loose there job. You are basically stuck and chained to a sinking ship.

It could work..... The Clippers could also win the NBA championship this year:skull

Maybe at the moment.. but it is likely not the top of the market in the longer term.

If you are in the house right, you can rent it and weather any economic issue. The key to any deal like this is to not be over leveraged. If you can deal with not having a "baller pad" and just have a nice house, It is really easy to make the place at minimum pay for itself, and still have free access to it over 60% of the year. If you don't want to rent the place out at all, ever, then certainly do your diligence as it will be a monthly sunk cost.