Buying a Ski House with Friends

[2Planker]

Form a corporation and buy the house under the corp.

That's what my folks did in 1978 to buy a 28' & 44' Pearson.
Island Sailing Assoc., St Thomas USVI

 

[abc]

Basically, treat it as a business. Your "friend" as business partners.

You'll be better friends in the end.

 

[abc]

I think if you buy a house with friends, the odds for success are poor. But it can work with siblings because the relationships are different, and you're probably already tangled up financially in one way or another. And if Mom and Dad are still alive and thinking well, they can help arbitrate disputes. Or you might get Dad to put up some of the dough required. But I give a solid thumbs down for buying with friends.

The big difference between "friends" and family is, family members are not necessarily expecting the partnership to be entirely fair, or at least not all the time. You're family after all. You help each other out at one point or another. You parents wipe you ass when you're little. You wipe theirs when they're old.

You trust your family will hold up their end of the bargain. And you have good reason for that trust because you've been together much more intimately than any "friends" for much longer. Deep down, you KNOW their true character.

I've been in with family members in financial transactions. It all worked out for all parties.

 

[Smellytele]

I would never buy anything with my family nor my wife’s. Wouldn’t with friends either.

 

[jaytrem]

Basically, treat it as a business. Your "friend" as business partners.

You'll be better friends in the end.

Yeah, there aren't many stories of friends going into business together that end up hating each other.

So to be so negative but DON"T DO IT!!!!!!!

 

[cdskier]

You trust your family will hold up their end of the bargain. And you have good reason for that trust because you've been together much more intimately than any "friends" for much longer. Deep down, you KNOW their true character.

I've been in with family members in financial transactions. It all worked out for all parties.

Nope...wouldn't do it with family either. I know my family well enough to know not to trust many of them. And even ones I "trust", I still can't guarantee that their interests wouldn't change over time to no longer align with mine.

 

[abc]

Yeah, there aren't many stories of friends going into business together that end up hating each other.

So to be so negative but DON"T DO IT!!!!!!!

But how many sole proprietors have out perform business that have partners?

If you don't know how to read and trust people, and work with their limitations, you're limited your resources.

 

[abc]

even ones I "trust", I still can't guarantee that their interests wouldn't change over time to no longer align with mine.

That's when you need to go your separate ways. And that itself doesn't need to be a negative either. Hopefully, you've both gotten enough benefit from the partnership already.

I know my family well enough to know not to trust many of them

But that's exactly the advantage of family. You know them for such a long time you know who not to trust too.

 

[Hawk]

ABC, you make it sound like it's so easy to separate the good from the bad. Let me tell you, in general people are very unpredictable. They basically suck and when you add matters of money they suck more. No one ever does what they say they will do. That is why signed agreements are always key. And only a few really talanted people can truely read people from the start. And those people are few and far between.

 

[abc]

ABC, you make it sound like it's so easy to separate the good from the bad. Let me tell you, in general people are very unpredictable. They basically suck and when you add matters of money they suck more. No one ever does what they say they will do. That is why signed agreements are always key. And only a few really talanted people can truely read people from the start. And those people are few and far between.

I didn't say it's "easy" for everyone. Much less imply it's "read" people on short encounter. But it was easy for me to read long time friends and better yet, family members. At least it was "easy" for me to weed out those untrustworthy. I haven't had anyone whom I trust violated my trust. Even when we had disagreements, we always managed to sort them out amicably.

You also seem to have missed my suggestion to formalize it and treat it as a business too. That would protect those who doesn't feel they could read or trust people.

P.S.
I can't help but chuckled at your comment, which reminds me of my parents.
My Dad felt everyone is out to get him. My Mom thought everyone is unpredictable therefore can't be relied upon.

But somehow I've grown up to be rather "trusting". Don't ask me why or how.
Though as I watch my parents, I can't help but to noticed they actually "trust" others too, despite their claimed distrust of people in general. It's just they second guess their trust a lot more than I do.

 

[Hawk]

Your right. I missed that. I guess that my experiences with working in partnerships and overseeing partnerships for the last 30 years has tainted my view. You are certainly a very luck guy.

 

[abc]

You are certainly a very luck guy.

Probably. I'm not surprise if luck has something to do with it.

But on the other hand, I don't push my luck. I don't go into partnership with people I have doubt with. I may have lost opportunity for being "too conservative", you may say?

 

[gladerider]

Form a corporation and buy the house under the corp.

this. that's what i would do, if i must. personally, i would never do this. but, if i must..
this would shield all parties from any resulting personal level legal liens; but some states have added financial burden on corps so there are some downsides.

in any business partnership, the beauty of a contract is that it forces you to spell out all assumptions as well as exit terms that require agreement upfront, if you get a good lawyer.

 

[abc]

in any business partnership, the beauty of a contract is that it forces you to spell out all assumptions as well as exit terms that require agreement upfront, if you get a good lawyer.

This!

Having spelled out all the hidden assumption is most beneficial. Some in the party may be forced to realize it really isn't what they want. It avoids getting sucked into something they don't actually want. Also, having considered seriously of most of the downsides, it removes a lot of the surprises. So if and when the less than perfect scenario occurs, the reaction will be more predictable.

 

[Former Sunday Rivah Rat]

Wait a year for prices to collapse and you will be able to afford it on your own.

You are ignoring a big demographic demand shift that's happening as a result of the WFH phenomenon.