Tuesday, 23 October 2018
Agent Resource Center
This Old House - Do-it-Yourself

Buy Real Estate Now

Written by Posted On Wednesday, 10 October 2018 13:00

Don't have the resources to purchase real estate on your own? Do what I did, buy real estate with partners.

I will have an entire series on this subject soon if there is an interest. We call it "Syndication" and it may be your key to financial freedom and a successful real estate business.

Considerations When Purchasing Property With Others

Whenever you consider owning property jointly, there are long-term considerations to bear in mind. We have highlighted a few important points to clarify before going to contract:

1. Look at the relationship of all the buyers. As college roommates, the longevity of the relationship may be limited to a few years. Project what will happen if one party wants to be bought out at a later date. Can one of the buyers handle the mortgage payment and buy out alone? Often times it will take both incomes to support the payments. If one party opts for a change, where will that leave the other owner? Will you be forced to sell? It may be prudent to build in a "notice" clause in your agreement to allow for time for one party to sell their interest. Do you, as the remaining buyer have a right of "first refusal?" What if the other buyer sells to someone you are not comfortable with? These are questions that may dampen the initial enthusiasm of home ownership but are critical to harmony later on when the relationship may shift for any number of reasons.

2. Provisions on an agreement might need to address additional persons one or the other of the owners may want to bring into the jointly owned property. If buyer #1 brings in another person to live with, that makes buyer #2 crazy, then it is better to have some kind of provision for settlement prearranged for possible problems or complications.

3. Decide how the title will be held prior to purchase. As joint tenants, if one party dies, the other party enjoys the right of survivorship. However, if the title is held in a tenancy in common, one party can dispose of their share to whomever they choose, leaving the other divisional owner at a possible disadvantage depending on the circumstances.

4. Outline a set of guidelines for repairs in advance. If one party wants to put on a new roof, and the other party doesn't want to invest the money, what happens? Delineating specific points of repair or replacement can make improvements an easier subject to deal with. Keeping track of which owner has contributed the investment/improvement dollars can make reimbursement at the time of sale easier and clearer.

These are just a handful of the questions you may want to ask yourself before investing with others in the homeownership/real estate investment game.

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Saul Klein

In 1948, doctors told my father that his life aboard submarines on war patrol in the South Pacific and the depth charging he experienced had rendered him sterile. Although controversial and not widely applied, he was treated with an Ayurvedic therapy called “shivambu.” If you are unfamiliar with this term, I recommend you Google it because against all odds, I came to exist.

That was a loony segue into my life but is a fitting precursor to a career that would be just as incredible.

Like my father, I joined the Navy. However, due to a medical inconvenience, I was honorably discharged after 6 years of commissioned service, all on Sea Duty. This was an opportune misfortune that led me down the path to a successful career in real estate. Both my father and grandfather flirted in real estate brokering and flipping part-time, and I followed suit but making a lifelong career out of it.

With over 40 years in real estate, it is impossible to talk about my experiences in this small window. But I can proudly say that I am well-recognized as an industry pioneer, especially in real estate syndication and education, and one of the few luminaries that paved the way for real estate’s transition to the online world.

Some highlights of my life’s work:
● Co-created ePRO, technology certification course that certified 70,000 students
● Created the first online communities for real estate professionals to network, learn, and sell
● Created "Opt Out" Listing Syndication, aggregating over 1.4 Million Listings in 18 months
● Built the #2 National Listing Syndication Service, Point2 Technologies, sold to Yardi in 2010
● Founder of the California Association of Buyer’s Agents
● Member of the first REALTOR.com Team, pre-IPO, responsible for obtaining first 500,000 listings
● Helped Zillow and Trulia build up their MLS data inventory

Today I continue to lead efforts that bring new technologies to the real estate industry. Feel free to reach out and learn more.

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