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.