How To Buy Out A Sibling On A Shared Property


Today’s video is about how do you buy
out a sibling or siblings when you co-owned a property together. I’m going to
tell you right now that there are 2 destinies. One is super happy and one is
devastating and can ruin a family’s relationship. Which is why I decided to
make this video to help you figure it out. So, you find yourself in a circumstance
where you own a property with the sibling. Maybe you inherited it, maybe you
went in on it together. But the bottom line is, one of you or multiple of you
aren’t actually happy being in on the deal together. And so the question is how
do you do a buyout where everyone gets taken care of? Where people can actually
walk away and still have a wonderful relationship with each other if possible?
You know, I’ve had the opportunity to sit down with families where there’s a lot
of anger, there’s resentment, there’s frustration because bottom line is you
guys aren’t kids anymore. You’ve grown up. You’re adults now. And everyone has a
different philosophy about money and what’s right with money. And everyone has
a different need. Some people need to eliminate debt. And other people want to
invest and they want to build a future for themselves. So, what I want to do
today is I’ve taken some notes here and I want to share some of the different
ideas of how you can successfully buyout the sibling. So, first of all, I think it’s
important to decide who wants out, right? Who wants to keep the property? Who wants
to sell the property? There might be sentimental reasons or attachments or
financial reasons why someone wants to stain on the property. And there might be
other reasons usually it’s money why someone wants to get out of the deal. And
so first of all, selling is going to be the easiest and simplest solution. Unless
there’s a sentimental reason for actually keeping the property. So, there’s
a couple of different ways of buying out a sibling. What is literally just to sell
the property and decide how proceeds are going to be a split with each other. The
other option is to actually see if you could literally tell that sibling, “We’re
gonna hold this home for this period of time. When we actually sell it, this is
the cut that you’re going to get on it. Also if the property goes up in value. Things
are going to be split equally.” So, in other words, you’re going to get your money
but you have to wait. So, sometimes people are willing to be patient. But if they
need to get the money now, you can sell or you can also do a refinance. Which
means put someone on D to the property that is actually going to be refinancing
it. Now sometimes, if you put a person on the deed, they’re going to have to wait for
two years before they’re able to refinance it. But there might be a couple
of banks out there that have slightly different rules. So, there’s really three
different options. It’s like well we’re either gonna sell this thing. We’re going
to put the person who wants to keep it on title so they can refinance it and do
a cash out so they keep the property and puts cash and everyone else’s
pocket. Or the sibling agrees to be patient until the property actually sells. Those
are probably the three most common outcomes in a scenario like this. One of
the things that I want to definitely warn you of is it’s very typical for a
family that has a house that no one wants because they inherited it. Or if
how they got it. That they’ll be rash. And they’ll basically sell the property for
a whole lot less than it’s worth. I have bought many properties in my days
from inherited property from families that just wanted to dump them. If you
want to be smart and get the most money out of the investment, then someone’s got
to actually put up some capital if the property needs to be updated. That
sibling that puts up the money or who or maybe it’s the sibling that’s
going to be in charge of actually getting it already and put it through
the sales process, you might want to consider giving them a slightly bigger
cut because they’re putting time and effort in when other people aren’t. Or
someone’s putting up money to fix it up because you might put in ten thousand or
repairs and get $40,000 back. In which case, it’s like, “Hey, that’s more money for
everyone to split. We’ll be a little patient.” But someone’s putting in time.
Someone’s putting in money. Let’s make sure those individuals get taken care of.
On the other hand, I’ve launched many investors successfully that started with
the house that they inherited. And that person that wants to actually say, “Hey, if
I sell, I get some of this money. I either can keep the house. Lease it. make money
on it or sell it and go buy other investments.” That’s usually the person
who’s most excited about organizing the family. You got to pull a family council
together. You got to lead a positive conversation. I would give them the this
video to watch. And itemize out the three different options for what they can do
on whether we want to be patient. Whether we want to rent it and sell it down the
road whether we want to refinance it or whether we want to list and sell it. And
then come up with a strategy to sell the most intelligent way possible. Bring in a
realtor that can find out, “Hey, what could this be worth a fixed up versus not?” So
you can decide whether it’s market ready now to sell it or whether you actually
want to put some cash in before you sell it. If any of the family says, “Hey, this is
an opportunity for us to invest and multiply our assets.”
I got a division of my company and that’s actually exactly what we do. In
the link below, you can learn about how you can actually strategically sell that
property for the most money and then roll that often tax free
into a series of investments where you can actually use this as an opportunity
to develop real wealth. Biggest mistake that I see families make when they
liquidate property like this is that they either just pay off debts or they
spend and splurge it. And this was one of those amazing opportunities to actually
invest and turn that into something instead of winding up with nothing just
a short time later. Hey, thank you for watching today’s video. I hope that it
helped answer this question for those of you that are looking for what to do if
you’re in this kind of situation. For those of you that want to learn how to
invest more powerfully, click the link below. And we’ll show you how to
basically sell that property for top dollars and how to turn it into
something incredible for you. And this is an opportunity for generational wealth.
This is an opportunity for you to take the last generations money and turn it
into something even more powerful for the next generation. That’s a great
choice to make. Other than that, make sure that you subscribe. Every day I’ve got a
new video coming out that’s either going to talk about your financial psychology,
your business psychology or real estate psychology with the tools that are
actually going to help you get out there and freaking crush it in the game of
real estate. Take care, we’ll see you on tomorrow’s
video.

8 thoughts on “How To Buy Out A Sibling On A Shared Property

Leave a Reply

Your email address will not be published. Required fields are marked *