Friday, March 24, 2017

Should You Buy a Summit County Ski Investment Property With Friends?


In recent years, I have represented a number of buyer clients who are groups of friends or couples who are friends.  They have pooled their resources together to buy a vacation ski condo in Summit County.  Here are my tips if you are thinking about doing the same!




For Denver Front Rangers who love to ski or ride in the mountains, you are fully aware of the I-70 traffic woes that lie between your home and a great day on the hill. The reality of day tripping to the mountains on weekends is hindered by the fact that you will be with tens of thousands of others on I-70 both on your way to the mountains and home.  And that makes the commute almost unbearable to the point of not even leaving your house.  And affording a place to stay in the mountains can be expensive.  So, what are mountain lovers to do?

Many people ask me whether it’s a good idea to purchase a mountain property with friends.  This seems like a great solution to have access to a mountain property for the weekends, avoid I-70 traffic, and to generate some income with short term rentals while it’s not being used by the owners.  Here are some pros and cons associated with this plan:

Pros:
  • Buying with others increases your purchasing power and reduces your monthly costs.
  • You can afford a property you might not otherwise be able to afford.
  • You have a weekend place to stay when skiing/riding in the mountains.
  • You can offset some of the costs with short term rentals.

Cons:
  • You will need to coordinate with your co-owners for use, scheduling, cleaning, etc.
  • Your friends will now be your roommates – that could be good or bad.
  • People’s plans change in the future and ideal timing for the sale of the property will never be the same for all the owners.

My best advice for people considering buying a property with friends is to over communicate expectations before purchasing the property.  Once the property is under contract, a legal agreement should be created that addresses sales and buy outs at a minimum.  Other items that owners will need to address is ownership structure (LLC, partnership, etc), short term rental management, cleaning, pets, bedroom assignments (if applicable) and guests, to name a few. 

If you are interested in learning more about purchasing vacation property with others, please feel free to reach out to me!

Amy Nakos, JD, GRI, RSPS
970-389-8388
www.amynakos.com

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