Putting together a syndicate to buy an investment property?

onekeano

I'm thinking of putting together a small syndicate of guys I work with to buy an investment property over a 10 year window.

Say 5 people @ 100k each and leveraging another 500k from bank etc.

We are all mid 50's and have buy to let experience and this would be designed as a supplement to our pensions.

Just wondering what the bank appetite would be to such a proposal?

Any advice would be appreciated,

Roy

newacc2015

I know this isnt answering your question, but it is still relevant. I read a thread on askaboutmoney how a partnership of professionals owned a building which was mortgaged with bank. The same bank also had a mortgage with one of partners on another property. The partnership werent even late once on the property. But one of the partners fell into financial trouble and the bank was calling in all their loans ie the partnership were being forced to sell their property

IMO you are better off buying an apartment on your own in Dublin 9. There is so serious value in Ballymun in the good part ie beside the garda station. You will let them to students/professionals with no issue. You can pick up a 1 bed for like €85k or a 2 bed for not much more

Atlantic Dawn

Your age would be against you, the banks would insist on the leverage portion being secured on your homes, very high risk for your future if things go wrong. What happens if some in your syndicate want to sell out and some don't?

Why not instead invest in a property fund?

adam88

newacc2015 wrote: »

I know this isnt answering your question, but it is still relevant. I read a thread on askaboutmoney how a partnership of professionals owned a building which was mortgaged with bank. The same bank also had a mortgage with one of partners on another property. The partnership werent even late once on the property. But one of the partners fell into financial trouble and the bank was calling in all their loans ie the partnership were being forced to sell their property

IMO you are better off buying an apartment on your own in Dublin 9. There is so serious value in Ballymun in the good part ie beside the garda station. You will let them to students/professionals with no issue. You can pick up a 1 bed for like €85k or a 2 bed for not much more

Any link to these

daveharnett

onekeano wrote: »

Any advice would be appreciated

Each of you will end up jointly and severally responsible for the 500k loan, if you can get it.

Splitting a house after a two-party romantic partnership breaks down is messy. That mess (and the probability of a breakdown) increases exponentially as you add more parties to the equation.

I don't know of any way to insulate spouses from this partnership. Like it or not, they will play a role too.


Get a lawyer to help identify all the "what if"s, and draw up a contract which explicitly covers all of them. Read the contract, and then run screaming.

One of the five of you will get divorced in the next 10 years, one will die, one will fall out with the others, and one will have some other financial emergency requiring him to be bought out.

Who will put in the work, who will freeload, and who will referee?

Have you considered shares in a REIT instead? Seems much cleaner.