Ownership is Within Reach

Co-buyers take title as tenants-in-common (TIC) or through a co-ownership LLC. TIC is simpler and works well for smaller groups; an LLC adds a layer of liability separation and can simplify income tracking. The right structure depends on your group size, lender, and how you plan to use the property.

Either way, there's a custom operating agreement drafted by a real estate attorney before closing. It covers ownership percentages, decision-making thresholds (routine maintenance requires majority; a sale requires the thresholds in your track agreement), reserve fund contributions, the rental approval process, and the full exit mechanism.

The operating agreement includes a default provision. If a co-owner misses payments, the remaining group has the right to purchase their share at a pre-agreed valuation formula before it can go to an outside party. There's also a required reserve fund, typically $200 to $400 per person per month depending on group size, that covers short-term gaps without forcing the group into arrears.

In practice, the accountability structure in a co-buy is stronger than in a rental. You're not just co-tenants. You're co-owners with financial exposure to each other, and that changes behavior.

The group qualifies together on a single mortgage. Combined income means access to properties and loan amounts that no single buyer could reach. A group of four buyers each contributing $37,500 achieves a $150,000 down payment on a $750,000 property. Each person's mortgage share runs roughly $1,329 per month at current rates.

Not every lender does co-buy mortgages. We work with lenders who do, and part of what we do is help groups structure their finances to qualify cleanly.

Most buyers come in with an existing group. Friends, couples, colleagues. If you don't have one yet, our sessions and drop-in hours are where you can meet other households looking in the same neighborhoods and price range.

We recommend every group work through a formal alignment process before committing, which is what our three Group Formation sessions are for. Budget, timeline, property criteria, household guidelines, and exit plan all need to be agreed before you start touring properties.

The operating agreement sets out exactly which decisions require what level of consensus. Day-to-day maintenance decisions typically require majority vote. Bringing in a new co-buyer requires a higher threshold, usually 75% or unanimous depending on what the group agreed. A forced sale or extension past the pre-set date requires unanimity.

These thresholds are set at closing, not negotiated mid-ownership when emotions are higher. That's the whole point of doing the legal work upfront.