Welcome, visitor! [ Register | Loginrss  | tw

Buying a share from someone who owns the whole asset

| Boat share, collaborative consumption, Property, shared ownership, sharing | February 14, 2013

(I’m going to use boats as my example in this article because using the word “asset” over and over again gets truly tedious, but the principles apply to holiday homes, motorhomes and other assets.)

These tricky financial times are not receding as quickly as everyone hoped and many boat owners are wondering if they can justify keeping their boat or if they need to sell to extract some equity (or reduce their debt). They will also be aware that selling their boat might take a long time.

Most owners don’t even consider selling one, two or maybe three shares. I’m not saying that finding the right partner is going to happen overnight either. But with a little patience, it can be an excellent alternative: the owner keeps their boat and gets some equity.

Most “original” owners fully understand that they need to ensure that their new partners feel equal in the syndicate, but there are some who never really accept that the boat isn’t still entirely theirs and buyers should be alert to this. As with any sharing arrangement, there needs to be extensive discussions to work out all the aspects of the sharing arrangement and this should in turn be recorded in the contract. During this process, the new partners also need to assure themselves that the owner is really willing to share!

I’ve spoken to several people who’ve sold several shares in the asset they previously owned outright and the best method I’ve seen is for each partner to be bought in one by one. For example, say the ideal is to sell three shares so the boat ends up with four owners each with a quarter. The owner finds the first partner who buys half the boat and agrees with the plan to bring in two further partners. The two partners then look for the third partner, and when this sale nets a further third of the value of the boat, this is split between the first two partners. The three partners then look for the fourth partner, and the proceeds of the sale of the quarter are split between them. The contract is amended as necessary at the sale of each share.

The advantage of this process is that at each stage all the existing partners have an equal say in all matters. If each partner simply buys a quarter share, then the original owner inevitably has more control and may be able to push through the sale of a share to a partner that isn’t acceptable to the others. The other alternative is to wait until all three new partners are available. However this might take some time and there is the risk is that the first potential partner gets fed up waiting.

Many owners think that the potential partner will be unwilling to make this greater investment and indeed some will be unable to do this. But if I was that potential partner, I’d prefer to buy the half at the outset so that I knew I had equal input on decisions down the line.

As with all sharing arrangements, there are many ways of doing things, and all require an investment in time, discussion and negotiation to discover the best solution for a particular group of partners. The pay-back is that when set up correctly the vast majority of syndicates work really well, providing much joy, very cost effectively, for many years.

Comments Off on yours2share has a facelift

yours2share has a facelift

| shared ownership, sharing, website business | December 11, 2012

I’ve been quiet for the last nine months, but now I’m going to be making up for lost time.

yours2share underwent a major update in August 2011, but from the start there were some major issues, particularly with the way the website performed on Google. No-one was at fault; even with hindsight I don’t know what I would have done differently.

Since February, I’ve been contemplating whether to continue running yours2share or not. As will be pretty evident to anyone who has been following yours2share for a few years, I strongly believe in enabling private syndicates and rental sharing.

Unfortunately the most obvious way to make a profit doing this is to be part of the sale of the asst and take commission. However I have three issues with this. Firstly it is is a logistical nightmare: the owners can be in several countries and the asset in yet another. Secondly, it’s not something I’m interested in doing!

But the third issue is the most important, I believe that a critical part of the decision to go ahead with a private syndicate is the partners’ personal evaluation of the other members of the syndicate. Negotiating the contract is the perfect way to do this. If you can do this, then you can probably overcome any issues that might arise throughout the life of the syndicate. If I do this for other people, I’m concerned that people will not spend sufficient time getting to know their partners, but just rely on me. I don’t think this is a good idea.

As well as running your2share, I am also an online marketing consultant and I build websites based on WordPress for other people. Until recently, the one thing WordPress couldn’t do well was run classified ads, but this has now changed. I realised a few months ago that I could use WordPress as the basis for yours2share and this is what you will now see.

So the new yours2share is stripped down, just the ads and the guidance. And it works better than any other classified system that I’ve ever tested.

I’ve had a steady stream of people contacting me over the year asking me about yours2share, telling me that they’ve sold shares and generally giving me their support. I really appreciate this.

I also really appreciate the fact that so many people using yours2share have arrived via word of mouth; this has been particularly striking as I’ve been up to my elbows in user data over the last few days. Please keep telling people about us. I’m particularly keen to see more properties from Spain, Greece and Portugal on here. I know they are hard to sell at the moment, and people might like to consider the option of selling a half share, or a couple of one third shares.

Let me know what you think of the new website and if you find something that doesn’t work, please tell me. I hope you enjoy it.

October 2008 Dream golfing properties

| collaborative consumption, fractional ownership, joint ownership, Press, Property, shared ownership | October 10, 2012

October 2008

Keen golfers often dream of owning the perfect villa within putting distance of the clubhouse of their favourite golf course, but many have difficulty justifying the cost of buying exactly what they want. Sharing a property with other like-minded golfers makes a great deal of sense and new website yours2share.com enables people to find compatible partners.

Continue reading »

  • New blog (with all the old posts)

    by on February 13, 2008 - 0 Comments

    Welcome to the new yours2share blog, which has all the old postings from the old blog but is now a fully fledged self hosted Wordpress.org blog rather than a Wo...

  • Sharing in action

    by on January 31, 2010 - 1 Comments

    Do you share a house, car, motorhome, boat, aircraft dog, horse or anything else? I’m always looking for examples of sharing in action to blog about on yours2sh...

  • Newsletter archive

    by on February 18, 2011 - 0 Comments

    I've been writing a newsletter for yours2share for nearly four years now.  Except for the first few months all of them have been managed through the excellent C...

  • Home sharing

    by on June 11, 2010 - 1 Comments

    A couple of weeks ago I wrote about our couch surfing experience with Australians Jeff and Gerda.  As we chatted over dinner, conversation turned, as it so ofte...

  • Successful horse sharing

    by on March 26, 2010 - 0 Comments

    yours2share now has well over 300 horse share ads, from all over the UK, from Devon to Ayrshire and Cardiff to Surrey (lots and lots there!) I’ve recently spo...

yours2share is not currently taking any new ads