May 19th, 2017 2:14 PM by Jodie Ford
3 Steps to Buying a Vacation Home With Friends
Owners have to be comfortable sharing ongoing expenses, like property management fees, utilities, insurance, and repairs.
To protect all owners when the unexpected happens, and to avoid hurt feelings and strained friendships, hire an attorney to set up an LLC, then purchasing the home through that company. Your attorney can draft an operating agreement that clears up expectations on everything from how utilities are shared to how a buyout would work if one owner wanted to sell and the others didn’t.
Keep in mind that the vacation-home market moves quickly, and with multiple stakeholders needing to agree that a property is the one, it’s best to decide on your shared criteria before you start looking. This is especially important if you’re searching from afar or if one person will be doing most of the home touring on behalf of the group. That way, when you find the right home, you can put an offer together quickly. You should also enlist a local real estate professional with expertise in the destination where you’d like to buy. That person is best qualified to help you identify homes that are a good value, that will perform well in the local vacation rental market, and that are in locations likely to appreciate.
If you find the right people to partner with, approach it like a business transaction, and act quickly when you find the perfect home, you’ll be sitting back and enjoying your dream home before you know it.
*Information from Zillow Porchlight