First Time Investment Implications

**sr240sxt** · 02-01-2009, 12:24 PM

Hello all,

I am exploring the option of going in 50/50 on a property with some family members in Florida. I currently live in Colorado and do not own any property. I am working to figure out how the lending process will work if I go in 50/50 with another party and also figure out the implications of owning a property in Florida that is not my primary residence. Am I considered a first time home buyer for that house or is it purely an investment? Also, will I lose any benefits when I go to purchase my first home to actually live in here in Colorado (first time home buyer incentives or primary resident incentives)? Could I still be considered a first time home buyer if the house in Florida is just an investment? Would it make sense to form an LLC for the investment property so that it is considered a business? Therefore I may be able to personally still qualify for first time home buyer incentives?

There are a lot of questions, I am just trying to figure out how this all would work and the best way to go about it to make the best decision. Who would I speak to about these topics, a lender or real estate agent?

Thank you!

**thomas12** · 02-01-2009, 10:59 PM

In 50-50 kind of a property deal, benefits exceed limitations.

**sr240sxt** · 02-02-2009, 07:16 AM

Can you elaborate? Such as why, or what is the best way to go about it in my position?

**REI GIANT** · 03-02-2009, 04:28 PM

There are several things you need to do before you enter into a contract to purchase RE with anyone.

1.You need to get with a real estate attorney and have them set you up with the right business entity before you purchase any properties.
You will want your attorney to spell out what each person’s role will be, how disputes will be settled and to have a first right of refusal included.
2.Decide what your exit strategy is before you buy the property.
3. You need to get with a mortgage broker/mortgage company and find the best program for you.[/font]
I would be cautious when entering into any business transaction with anyone. I have seen families torn apart when they buy real estate together.

REI GIANT
reigiant@gmail.com

**thomas12** · 03-02-2009, 11:14 PM

Frankly speaking; I have never gone for a 50/50 property, so I have no clue whatsoever regarding the benefits you lose or gain and similar other aspects.

**hardmoneymikey** · 03-09-2009, 09:08 PM

I don't have all the answers here, but I can tell you one thing. You will not be considered eligible for any first time home buyer programs for an investment property that is across the country.

Like a previous poster said, get with an attorney and a mortgage broker to see if this deal can make sense.