Property Co-Ownership?

[rodneyc8063]

Not sure if this is the right forum or if the title is correct, but basically I was wondering how a property would work if for example

I were to pay for the down payment, and my friend pays for the monthly maintenance and pitches in a bit on the mortgage (lets say half of it) and i pay for the other half.

When "we" decide to sell the place then he would take a percentage of the profits based on how much he put in per month.

Advantages are in my view that I wont have that much pressure on the mortgage as they would be pitching in to help. Also, i would have someone i know that wouldnt totally trash the place.

He also, would be paying for a place that he is actually investing a bit into so he will have something to show for it when we sell the place, as well he would be paying less rent then from someone else.

So I was wondering, how would this work? Would we be "co owners" of the place? Since he would get his money back at the end + profits

Or would this be treated as a renter/rentee scenario since im not living there?

For me personally, i dont want to have to put up with paying for the full mortgage, and im fine living at home but want to buy a place that I would want to live in some day, as well as a variety of personal reasons to wanting to do this versus fully buying and just renting out to someone random.

[pitz]

When "we" decide to sell the place then he would take a percentage of the profits based on how much he put in per month.


What about losses?


He also, would be paying for a place that he is actually investing a bit into so he will have something to show for it when we sell the place, as well he would be paying less rent then from someone else.

So I was wondering, how would this work? Would we be "co owners" of the place? Since he would get his money back at the end + profits


Why do you think there will be 'profits'? There's a whole host of issues that you'd want to address in a contract between you and your friend. Also, there are financing issues that you'd need to find a cooperative lender to deal with. I would implore you to seek proper, and importantly, independant legal advice before entering into such an arrangement.


Or would this be treated as a renter/rentee scenario since im not living there?


Why would you do this if you're not living there? Why don't you just lend your friend the downpayment funds if you want to help him out, taking a 2nd mortgage against the house, and then, lending him additional funds to pay down the 1st mortgage? Why bring all the liability of the house onto your own personal balance sheet?


For me personally, i dont want to have to put up with paying for the full mortgage, and im fine living at home but want to buy a place that I would want to live in some day, as well as a variety of personal reasons to wanting to do this versus fully buying and just renting out to someone random.

Why do you think there will be 'profit', why do you want to buy a house and then not live in it? I know you might think you're helping a friend, but this is insane.