#1. Profit
sharing
When
the risks and losses are to be shared, the profits will also be shared equally
or based on any previously agreed-upon ratios among all the parties.
#2. Unpredictable
uncertainties
What
will happen when one owner dies? What happens when one partner wants to leave
the partnership for some reason, such as bankruptcy or divorce? What if some
partners decide to sell the property but some still plan to hold on? What if
one or two partners refuse or not afford to pay the monthly mortgage
installments anymore after months of negative cash flow? There are too many
unpredictable uncertainties in the future and the problems can be very
difficult to solve and it may waste a lot of time.
#3. Joint
liability
If
the partners did not make his or her share of the installment, then the other
partners would still be held responsible for the payments and would endure the
credit-related consequences of any late or missed payments.
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