Investing In Real Estate As “Tenants In Common” in Georgia

Here's a good article by Donna S. Robinson written on 03 September 2012. She is a real estate investor and investing coach located in Atlanta, Ga.

Summary: Purchasing property as tenants in common is a way to own and enjoy a property with the freedom to sell your portion of the investment (based on total invested by group) without permission of the other investors.

Key Quotes:

An example Donna gives:

"For example, let’s say that you wish to purchase 100 acres of land, but you do not have enough cash of your own. However, you do have a couple of friends who would also like to invest. You and your friends agree to purchase the property. In addition, each of you will be investing a different amount of money.

The price of the 100 acres is $100,000. You will invest $25,000, your friend Bob will invest $25,000 but Paul will be investing $50,000. As tenants in common, you and Bob will each own a 25% undivided interest in the property and Paul will own a 50% undivided interest in the property.

An undivided interest means that you can’t pick out 25 acres of land and resell them as a separate piece of property, but you can sell your 25% interest to another buyer, and you won’t need Bob or Paul’s permission to do it. Each tenant in common can sell their entire interest in the deal, but the property remains intact. The new buyer simply becomes a tenant in common. In the title, each owners share of ownership is expressed as a percentage, so in our example the deed would actually state that you own a 25% interest, Bob owns a 25% interest, and Paul owns a 50% interest."

To pursue ownership as a tenant in common, I suggest you call TJ Hollis, with Lee, Black, Rouse and Hollis.

Read the full article at Investing In Real Estate As “Tenants In Common"

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga