Expert: Sue Bernstein - 8/15/2006

Question
Is it a good or bad idea to pool income and buy a property (Duplex - quadplex) with 4-5 friends in the effort to afford the high prices of LA property.  The idea is to stick to it for 2 years and reconsider our options at that point based on our positions in life.  Any plans would have written agreements.

Answer
Dear Luis,

If this is the only choice you have it could turn out alright.  I have heard too many horror stories where it doesn't.  If you do go ahead and create a partnership you need to have agreements covering everything.  What if one person wants to sell and the others don't?  What if someone stops contributing financially?  What if everyone wants to sell except one?  What if you can't all agree on the purchase price?  I can go on and on.  Just look into it very carefully and have every agreement in writing and then hope for the best.

Hope this helps and good luck.


Sue Bernstein
www.SueBernstein.com