- Jurisdiction
- Texas
I am interested in purchasing a home in Austin, TX with my brother -- splitting the purchase, eventual rental revenue and proceeds, etc. 50/50. The lot the home is zoned to be able to add a back house, so the ultimate plan is to build the back house on the property then rent out the main house. My brother would live in the main house while the back house is being constructed, and then he would move into the back house. After he moves to the back house, we will rent out the front house. I will not live in either residence, as I already own and live in a different home. I know we will need a loan for the existing home we want to purchase and then we will need a separate construction loan.
Because this will be fairly complicated in terms of order of operations (because this will require two separate loans loans, and because he will live in the main home for an unknown amount of time, etc.) and how payment arrangements should work between us (if he is living in one of the homes we buy together and I am not living in either one), I could use some guidance on a few things.
Three main questions I have:
1. What kind of contract do we need between each other to lay out all of the specifics and terms of this arrangement, especially given that he will be living in the residence and I will not?
2. Does anyone have a recommendation for a fair way to handle this (between my brother and I)?
3. If we ultimately rent out one of the homes to other people, do I need to get an LLC to protect my personal personal property from a liability perspective? At what point do I need to do that (before purchasing the home?)? Do my brother and I both need to do that? If so, separately or together as one LLC?
I assume we will ultimately need to work with a lawyer to draft the contract, but I'm trying to get more information before speaking with an attorney.
Please let me know if you have any guidance or follow-up questions. We will have to move on this pretty quickly, so any insight you can share is greatly appreciated.
Because this will be fairly complicated in terms of order of operations (because this will require two separate loans loans, and because he will live in the main home for an unknown amount of time, etc.) and how payment arrangements should work between us (if he is living in one of the homes we buy together and I am not living in either one), I could use some guidance on a few things.
Three main questions I have:
1. What kind of contract do we need between each other to lay out all of the specifics and terms of this arrangement, especially given that he will be living in the residence and I will not?
2. Does anyone have a recommendation for a fair way to handle this (between my brother and I)?
3. If we ultimately rent out one of the homes to other people, do I need to get an LLC to protect my personal personal property from a liability perspective? At what point do I need to do that (before purchasing the home?)? Do my brother and I both need to do that? If so, separately or together as one LLC?
I assume we will ultimately need to work with a lawyer to draft the contract, but I'm trying to get more information before speaking with an attorney.
Please let me know if you have any guidance or follow-up questions. We will have to move on this pretty quickly, so any insight you can share is greatly appreciated.