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Condo Partnership

Posted by macey5 (My Page) on
Tue, Apr 20, 10 at 2:26

My wife and I have been 1/3 owners of a Condo in Palm Springs,Ca since 2004. The other 2/3 partners are aging and would like to sell their shares. I have buyers for each of the other 2/3rd's. The mortgage balance is 53K @ around 6%. Not sure what the time remaining is but I think over 10 years.The property would sell for 150K leaving 140K +/- after closing fees. Net profit after closing would be around 29K per current 1/3 owner. My up front investment was 20K in 2004.

I am trying to understand the best way to bring in the new partners. For me, with the current note sitting at 53K, starting a new loan with the new partners for 150K isn't sitting just right. Is a new note only way to do a "re-set" as I bring in new "equal" partners (who have limited funds). What other options should I look at?

Although I have the money to pay the 53K note off myself, I'm not sure I want to put that much (53K)additional money into the condo right now. I'd say that's probably not a realistic option. Unless there is a compelling reason to do so.

What is the best way (fairest) to bring in the new partners?


Follow-Up Postings:

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RE: Condo Partnership

How is the condo now titled? Can the house be titled in a corp with the corp owners changing. First look at deed title and current loan docs.
What really matter to new owners is current market value, which as you now has gone down lately. Are you saying current market value is $150k. Will the sellers sell on time with a second, do you know and trust these new partners? How limited are the funds of these new partners? Are you saying they can't pay down their portion of the existing loan, assuming it isn't called?


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RE: Condo Partnership

CMarlin,
Good questions on the title and note that I'll have to research. I know there have been a few different owners brought in over the years (prior to us, we're the newest owner). All transfers have been via quit Claim deeds (Including me). There's been no strangers, each has been a friend or family member of one of the owners. So far no casulities, arguments or fall outs.

Doing some limited internet research on other unit in the complex for sale or recently sold, market value should be in the 150K range. I know the new partners. One of them is the daughter and husband of one of the existing partners. The other new partners are friends as well.

They will need to bring to the table the equal 1/3 of the deal or we'll go in another direction.

I know, it's getting complicated...


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