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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Equity Split Questions Posted by John Chan on May 29, 2003 at 5:44 PM In Reply to: Researching Liens At The Courthouse posted by SeanW on May 29, 2003 at 2:34 PM I do have a quick question about profit equity splitting. Do you have to in California real proerty market under law split the profits in half like 50/50(or as close to) or is this just a moral thing investors do? But what if I plan to use it for my primary resisdence but will most likely(95%) sell it within 2 years. My current home is in Escrow right now? And so if this property has a debt of total $185K and it can be resold in today's market for $380K(Neighbor exact unit sold for $400k) and I came in as an investor, I would do a 50/50 split but does it mean if I use it for my primary residence, then do I have to factor my 50% split and the math should be $380K-$185K=$195K/2 = $97.5K+$185K =$282.5K for my offer to purchase the property? Wouldn't it be cleaner to purchase the property outright, make an offer and open excrow? Besides, the seller knows he is coming out ahead...and plus I don't have to worry about any othe liens since he will have earnest interest to get rid of them or he can't sell property to me. But california law says seller has 4 years to sue me. They could easily sue me for misinforming them to sell property under market value? How do I prevent this? John Chan Follow Ups: Just be fair handed... Ward-CA- 10:25 PM, 05/29/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : I do have a quick question about profit equity splitting. Do you have to in : California real proerty market under law split the profits in half like : 50/50(or as close to) or is this just a moral thing investors do? : But what if I plan to use it for my primary resisdence but will most : likely(95%) sell it within 2 years. My current home is in Escrow right now? : And so if this property has a debt of total $185K and it can be resold in : today's market for $380K(Neighbor exact unit sold for $400k) and I came in : as an investor, I would do a 50/50 split but does it mean if I use it for my : primary residence, then do I have to factor my 50% split and the math should : be $380K-$185K=$195K/2 = $97.5K+$185K =$282.5K for my offer to purchase the : property? Wouldn't it be cleaner to purchase the property outright, make an : offer and open excrow? Besides, the seller knows he is coming out : ahead...and plus I don't have to worry about any othe liens since he will : have earnest interest to get rid of them or he can't sell property to me. : But california law says seller has 4 years to sue me. They could easily sue : me for misinforming them to sell property under market value? How do I : prevent this? : John Chan Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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