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[Hoist!]

Hey gang, looking for a lil advice or clarification here. As ya'll know, my mom passed last October. My 2 brothers and myself bought her a Coop to live in while she was alive. We no longer need the apartment, but what do we do with it? The maintenance is only $375/mo, which the 3 of us have been splitting. One brother and myself don't think it's the right time to be selling this. The Corporate Charter allows us to rent for up to 2 years. We both think we should do that, and wait for the RE market to pick up again. Now the problem.

My other brother (the 3rd partner), at the demands of his wife, wants out now and wants to either sell, or be bought out by us at present market value. Cash only. No terms. Both of us told him to screw off basically. There's no downside to renting and waiting (except the market continuing to slide, which is a risk too I guess), and we'll clear $500-$600/month (after maintenance fee) by renting for 2 years, then selling it.

Not looking to alienate my brother, but because of his demanding wife, he won't consider anything we suggest and and is going to his lawyer with it. We told him great, but it's a 3 way partnership and 2 of us agree, so go waste your money on a lawyer, but you'll still have no say. Trying to determine, before going to a lawyer myself, how this 3-way arrangement works from a purely legal standpoint. Any of you attorney guys out there have any advice on how 3-way partnership deals work in a situation like this?

Thanks gang!

Hoist!

[Screamin]

So sad to see families feud upon the death of a loved one. Been there and it sucked.

Ever been a landlord? I thought it sucked too.

Best of luck.

[erniezap]

Howie, if I were you, I'd get together with the non-demanding brother and either use my Home Equity Lines or take a loan, buy him out, and keep the place till the market improves.  The demanding will love it when you sell in a couple of years at a profit...

[FR8TRN]

Not a lawyer, but into RE and wife is RE Agent/Broker so I'm around it alot, asked her.  Short answer, yes they can force a sale, but this does vary by state, your best option, buy him out, specially if it's at todays value of the home, which is probably way the hell down from where it will be when the market comes around.  If you'll be makin $$ on it I don't understand the need for him to sell though, just don't make sense, but then, not everyone does.

[BIGDOG]

 I would buy out your brother , rent the unit out and sell in better times. Your brother will loose out on the gain.
The hard part will be setting a fair price , you would be willing to live with . My thought would be the low end of an evaluation as your taking on the load. JMHO

[hdhog1]

  I'm not a lawyer Howie.  If a was I would surely help ya out.  I can only say, your thread title is spot on.
  IMO its a lose lose proposition.  Your brother will end up pissed regardless.  My advice get the place appraised.  Hopefully you can find someone willing to give it a true (nothing is selling) low value.  Then buy him out, if you wait the value surely will increase.
                                          Good luck..........    Randy

[Hoist!]

Thanks for these responses guys!

My agreeable brother and I don't understand it. It's a moneymaker while we wait, not an expense. So there's no cost and only profit since it's fully paid for already. My brother and I didn't really want monthly payments to pay our other brother off. But if he can legally FORCE us to sell now, it might be the only option. Like I said, we'd be idiots to sell it now though.

I've been a landlord for 29 years, so that don't bother me none. And it's only a studio apartment in a Coop Garden Apartment Complex. So not much risk or hassle. The Coop's RE agent will deal with everything too.

Thanks again, and if ya come up with anything else, please let me know.

Hoist!

[hdhog1]

Like I said, we'd be idiots to sell it now though.
Hoist!

  You already know but DONT SELL...... Buy  Buy  Buy

[hard10]

Howie, I've got three sisters so inevitably I will have to deal with this same situation in one form or another. Thankfully it has been setup so it will be minimal. You already know what the smart thing to do is. The problem you are going to encounter is when it comes time to sell in a few years after you have already bought out your brother. The only thing worse than greed is jealousy and your brother is going to be jealous when he sees you're flush with cash after the sale. He won't remember all of the problems that you potentially will encounter as a landlord, he'll just see the money you made. It's a no win situation and I wish you and your family the best.

[Hoist!]

Howie, I've got three sisters so inevitably I will have to deal with this same situation in one form or another. Thankfully it has been setup so it will be minimal. You already know what the smart thing to do is. The problem you are going to encounter is when it comes time to sell in a few years after you have already bought out your brother. The only thing worse than greed is jealousy and your brother is going to be jealous when he sees you're flush with cash after the sale. He won't remember all of the problems that you potentially will encounter as a landlord, he'll just see the money you made. It's a no win situation and I wish you and your family the best.

Well we all know you can't negotiate with unreasonable people who only want what THEY want and won't discuss it. I pick up and walk out when a customer tries that approach with me. But it's a true NO WIN regardless, when it comes to family!!!

Hoist!

[miker]

Rock, paper, scissors....I like to be helpful.



Interest rates are low though.

[ice6900]

hoist its not my business but is there any immediate money problems or other reason ur 3rd brother might have that would nessitate an immediate cash influx other than the greed of his wife, is it normally happy families between all of u or would u guys be better off without the 3party?
Dont feel u need to post a response to this here, i am merely trying to point out there may be a legitimate reason you and your other brother are not aware of.

[Hoist!]

hoist its not my business but is there any immediate money problems or other reason ur 3rd brother might have that would nessitate an immediate cash influx other than the greed of his wife, is it normally happy families between all of u or would u guys be better off without the 3party?
Dont feel u need to post a response to this here, i am merely trying to point out there may be a legitimate reason you and your other brother are not aware of.

None that we're aware of ice. If mom was still alive, this would never be an option for them anyway. And renting it gets him positive cashflow for awhile, not adding an expense like he's been paying for in his share of the maintenance. It's a no-brainer to me and my other brother. We just don't get it. Well we do! The "greedy" wife!!!

Hoist!

[ice6900]

as has been mentioned above, u can probably be forced to buy a larger share which i assume u both can afford, or sell which i guess is not an option due to negative equity. Take my advice dont waste money on a legal battle none of u will win, my advice is save the family spirit, make a decision asap u dont have many options, the thruxton will have to wait.

[Hoist!]

as has been mentioned above, u can probably be forced to buy a larger share which i assume u both can afford, or sell which i guess is not an option due to negative equity. Take my advice dont waste money on a legal battle none of u will win, my advice is save the family spirit, make a decision asap u dont have many options, the thruxton will have to wait.

I just spoke to the broker from the property. The prices at this Coop haven't dropped badly, and nowhere near as much as the private home market. Who knows how long it'll take to sell, but that's be worth persuing now anyway. I hope that's the case and we can sell it. Then the lil baby brother can think he got his way! And the Thruxton won't have to wait!!!

Hoist!