It's a good idea on paper and one that many sellers have been trying for a number of years to increase their property values. However it hasn't worked for a number of reasons. First is the exit strategy. What happens when 1 of the 4 owners needs to liquidate their interest in the partnership? The other three would need to buy out his interest or find another friend. Both could prove to be difficult.
A second reason is that certain weeks of the summer are more valuable then others. Who determines who gets what weeks? Finally, and maybe the most important, financing is a challenge especially in today's market. The bank is only getting a 25% share of the deed to secure the note.
Having been in the Real Estate business for a long time, I can tell you that nothing breaks up friendships and families like Real Estate investments and inheritances. I've seen it countless times.
When it comes to houses at the shore, find something that you can afford comfortably before you invest. Partnerships allow more purchasing power, but create more risk.
Having said all of that, now is the best time to buy bayfront properties in Sea Isle City. Bayfront values have been effected the most by this economy. They are down 20-25%. Plus interest rates are still very low.
I can go on for hours about our market in Sea Isle. If you are interested, shoot me a message and I'll direct you to some of market updates or answer your questions.
