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From: derrick@mcc-db.UUCP (Dwayne Derrick)
Newsgroups: net.invest
Subject: Equity Sharing... Advice needed..
Message-ID: <159@mcc-db.UUCP>
Date: Fri, 19-Apr-85 23:21:28 EST
Article-I.D.: mcc-db.159
Posted: Fri Apr 19 23:21:28 1985
Date-Received: Mon, 22-Apr-85 06:43:49 EST
Distribution: net
Organization: MCC (Austin, TX)
Lines: 42

After hearing, and reading information on equity sharing for residential homes,
It would seem too good to be true. In fact it seems so good that I would think
everyone would be doing it? It is a (so-called) new technique, so, Is it that
nobody knows the full story?
The story (briefly) as I've concluded is:

I put a down on a house
I advertise for a half-owner
This half owner puts no money down, but, makes the full house payments and
pays all upkeep charges.
I get half the tax breaks
The half owner gets the other half of the tax breaks
At the end of a predetermined peroid of time (usually 5 years), I sell the
house, and split half of the profits.

The other half owner is "targeted" as someone who can't get a bank loan, or,
come up with a down for the house. So they would be renting if they didn't go
this route.. For a little more each month, they get the tax breaks, and a 
possible profit at the end of 5 years.
I on the other hand have property which is being payed for by someone else,
and, supposedly get a better tax break than I would if I just rented the place.

The whole agreement is binded with a contract that says; if my new half owners
quit before the peroid is up, they forfeit the possibilty of profit etc.. I then
am capable of finding new halfowners etc..

Now for the advice:
Has anyone in netland used this technique?
Are there any pitfalls, advantages?
If you haven't used this technique, what are your opinions?

I am a novice to the worlds of Real-Estate and investments and would appreciate
any and all advice.

Thank you.

Dwayne Derrick
M.C.C.
Microelectronics and Computer Technologies Corporation
12100a Technologies Blvd.
Austin, Texas 78759
(512) 331-6200