Home Buying Partner

By
Real Estate Broker/Owner with The Home Buyers Dream Catcher

Recently I read an article about this company that is matching home buyers.  Yes, they are finding two individuals that want to become home owners, but can't do so themselves.  They give them questions to answer, etc. and match them with potential partner home buyers to buy their first home.  Of course there are many rules that need to be followed before they recommend the match. 

I have seen it happen successfully and I have seen it fall apart a few weeks after closing.  I call it co-op buying, it's a marriage of sorts.  There are legal issues that each party must discuss, I always recommend speaking to an attorney before buying with a friend, family, or co-worker.  Everyone must protect his or her best interest legally, discuss where the want to go with this partnership and what both parties expect from the other.  I believe that done correctly with two individuals that know what the rules are and follow them, co-op buying could be a good experience.  It saves both the buyers rent money and gives them a sense of pride to become home owners.  Just a thought.......

Comments (3)

Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs
Like a blind date but with more at stake. That remeinds me of the blind date I had with John Carvilles sister many years ago. I sure you know where Carville is? 
Aug 24, 2006 11:59 AM
Jason King
Coastal Mortgage - Mandeville, LA
This strikes me as a bad idea. As easy as it is these days to secure a mortgage, this is not a road I could advocate taking. Why not buy it on their own and the rent to other partie(s)? It is a lot easier to get rid of an obnoxious tenant than it is a part-owner.
Aug 24, 2006 12:37 PM
Sabrina Aughey
The Home Buyers Dream Catcher - Woodstock, GA

Well I think it can be a bad idea, depending on if the proper steps are not taken.  Many times it has turned out to be a great experience and a great opportunity for first time home buyers.

As for them buying it then renting out too other parties, the entire reason that this has become an option is due too a potential home buyers either not having the credit or not having the income, the buyer can not buy alone.  I don't agree with your statement "as easy as it is these days to secure a mortgage"; for some first time home buyers (and others) it's not so easy to secure a mortgage. 

In many cases it's hard for a first time home buyer to be able to make the rent, pay utilities, car payments, daycare, etc. and still be able to sock away money for a down payment, so I feel we should look at all options for buyers, even non-traditional options, BUT the buyer(s) must be prepared for any and all issues that could arise from this sort of partnership.

Aug 25, 2006 12:18 PM