August 14, 2006 11:11 AM Subscribe
Three friends from college bought a house together to live in and for investment reasons 2 years ago. We have all invested different amounts of $ into the house and are now trying to figure out the % ownership we each have so when we go to sell we can fairly split up the profits. Any ideas...
posted by retro88 to home & garden (19 answers total)
I know I know, don't do buisness with friends and if you do get a legal contract. Well we didn't get that memo. We each have different opinions on how to split up the profits but we all want to do what is fair, so I thought I'd ask.me; here is a simplified layout of who invested what:
So there are 3 investors:
a $200K mortgage was split evenly three ways. ($66.67K each)
Investor 1 also put 20% down ($50K)
Investor 2 also paid for part of house improvements ($25K)
Investor 3 also paid for part of house improvements ($25K)
Other than that everything is even, we all live there, we all split bills, we all split the mortgage payments, we all help with home improvement projects. So we are 1st trying to figure out the % ownership in the house, then once we have that figured out what is the best way to divy up any profits (assuming there are profits)?