My partner & I are considering buying a home for investment purposes. My partner is married; will her spouse be required to be involved at the sale in order to close legally? We live in Texas.
Extant,
Texas law does not require a spouse to be involved in purchasing real estate that is not going to be your homestead. I am in the process of closing on a house and the title company told my lender that my wife would have to sign. I called the title company to ask why and was told that they thought the house was to be my homestead. After I cleared up that misconception, they said she did not need to be involved.
Wilson
Wilson, thank you for such a quick response… that sets my mind at ease.
Extant,
Do you have it in writing as far as how much you and your partner gets in this share ownership? Is it a 50-50 share? The reason I ask is I have seen partnership in real estate that gone sour and it never stated in how much ownership each party should have.
Make sure get it in writing.
reslynn,
It’s my sister that I’m doing this deal with, I suppose we should put it in writing anyway, although we trust each other. We have an immediate buyer for the property provided it meets the buyers’ criteria; e.g. fairly close to work, X amount for monthly payments, 3 bedrooms. It’s someone my sister knows with excellent credit but no understanding of how to buy a house.
Incidentally, I read in another thread where you recommended Steve Maletos e-book on foreclosure investing. I’m interested if it’s for real. I’m about 1/3 of the way through Carlton Sheets course and I’m surprised at how much it plays out like an infomercial… lots of motivational talk and testimonials but very little practical information.
Extant,
Not that I’m doubting your sister’s professional ethics, but I have seen it so many times where personal acquiantances got ruined because legal issues and misunderstandings. Simply putting it in writing eliminates any doubts or even assumptions regardless of the outcome of your business transactions.
I can’t recommend enough of Steve Maletos’ e-book since I have followed about 75% of his strategies. Pretty clear cut approach. Carlton’s Sheets is drilled mostly in buying with zero downpayment. And there are numerous situations that no downpayment is not even the best solution. Checkout johnreed.com about Carlton Sheets program.
Extant,
Texas is a community property state. If the spouse does not have to be involved when the property is purchased, you still need to ask if the spouse needs to cooperate in the sale.
It is my understanding that separate property acquired during the marriage, becomes a marital asset even though only one spouse may be on title.
reslynn,
I have to ask you… have you gone from scratch to a successful buy/sell from Steve’s e-book? Is it all glitzy on the outside and then when I get it it’s going to tell me to go start knocking on doors and putting ads out to help someone in a distressed situation? I’m not trying to be rude so please don’t take it that way, I’m just tired of buying into these game plans that seem to leave out the important details… like how actually to get started. ;D Thanks for your reply!
Dave T,
Well, it would be a problem if he had to get involved. No one on our side of the family gets along with him.
I’m sure there is a creative way to get around him. If we did the deal in my name only, but she co-signed for the loan, wouldn’t that keep him uninvolved? Once the deal is done and the money split she’s not worried about him getting half, she just doesn’t want him in and able to screw up the deal(s). I hope this makes some sense… anyway thanks for your reply!
Extant,
You might consider forming a LLC with the two of you as members. Then you could have the property or properties in the name of the LLC. The spouse would not be able to say anything about the sales of the properties, only his spouses disposition of her ownership of the LLC. The same might be applicable to using a Trust, but I am not sure. Check with a lawyer for clarification.
Wilson