Looking for partners in Watercolor purchase

[bamasam]

Hi everyone. I'm new to this sight but love Sowal. :D My family visits 5-6 times a year. We usually stay in Seaside. We have recently decided to start looking to purchase a home in Watercolor, but have decided that we'd like to have a partnership where we'd own 1/3 or 1/4 in a home. We have 1 partner already and possibly another (not definite on that one). We know that it is a buyer's market and we've got time to sit and watch until something comes along that the partnership can agree upon. We already have certain parameters that we've set. We don't want to spend more than $350,000 per partner whether it be a 3 or 4 person partnership. We'd like to be around Camp Watercolor as we have small children. We don't want to rent the house, but have not ruled out that possibility. We will likely set up the partnership as an LLC for liability purposes. We actually went and met with a couple that was having a house built in WC already and it was a beautiful home, but it was just not the right location for us. If there is anyone out there who would be interested or would like more information please respond. Or if any of you real estate professionals have any advice to give, or know of anyone who might be interested we'd appreciate the help and remember that this could result in a sale for you!

[Bobby J]

:welcome: You may be able to walk into a partnership with someone that can not sell right now. I have heard of people looking for partners to keep the house afloat until market gets strong again. Especially a long term investment. These sellers will bring new investors in as equal partners to help make payments. The initial investment of 20% becomes a wash and parties become equal. The benefit for current owner is it stops some of the monthly pain and the benefit for the new investor is he/she can get in with little or no money down. Of course there is more to it per each owner but the market offers allot of opportunity right now.

[bamasam]

We would not be opposed to that if we felt that the home fit our needs. Of course we would want to make sure that we had the deed and such ammended so it would reflect whatever ownership interest we had in the home. I'm not really sure how to locate these owners that would be willing to do this other than to post here and to talk to agents and let them know what we're looking for. Any ideas?

[sandjewel]

We have two properties in Seagrove Beach looking for partners or outright sale. We have plans to build 2000 to 2300 sf homes on both with total costs for lot and house around $550K to $600K. Walk to beach.

Contact me if you have any interest. 513-307-7250

[30A Skunkape]

I was listening to Clark Howard's show once and he opined that 'going in on' a property beyond your price range with other people was a huge gamble. He pointed out that relationships cool, people die, people lose enthusiasm regarding the property, people get divorced, people move across the country, people go bankrupt, people go to prison; all unforeseen issues that potentially change the entire dynamic of liability and ownership...basically, you enter the deal assuming that nothing will change, and life ensures that rarely happens. It just seems that spending money on a nice vacation rental and not ever having to worry about liability makes sense fiscally, but not emotionally. Just be wary before you dive in:cool:

[Beach Runner]

Two of our neighbors in Seagrove have sold fractionals and haven't had any problems from what they've told me. We are trying to sell a fractional of ours as well.

[bamasam]

Thanks for the advice on partnerships. For all of the reasons you mentioned my husband (who is a CPA) and I have opted to structure this partnership in the form of an LLC and we will have a very detailed operating agreement that addresses all of the items that you mentioned. We would spend time making sure that any additional partners who might join us in this venture would be completely comfortable with any and all of the provisions of the agreement prior to moving forward with our group.

[GreenWaveDave]

Thanks for the advice on partnerships. For all of the reasons you mentioned my husband (who is a CPA) and I have opted to structure this partnership in the form of an LLC and we will have a very detailed operating agreement that addresses all of the items that you mentioned. We would spend time making sure that any additional partners who might join us in this venture would be completely comfortable with any and all of the provisions of the agreement prior to moving forward with our group.

How would you recommend structuring a partnership? I know LLC is the way to go as far as form of ownership, but as far as creating and enforcing an operating agreement, creating some kind of reserve fund for maintenance and repairs, and making monthly mortgage payments and annual tax payments, what is the best way to set this up and make sure it is enforcable so to protect all owners interests?

[SHELLY]

Thanks for the advice on partnerships. For all of the reasons you mentioned my husband (who is a CPA) and I have opted to structure this partnership in the form of an LLC and we will have a very detailed operating agreement that addresses all of the items that you mentioned. We would spend time making sure that any additional partners who might join us in this venture would be completely comfortable with any and all of the provisions of the agreement prior to moving forward with our group.

In one sentence, what is your main objective that requires you to set up an elaborate partnership scheme with strangers vs. renting or buying outright?

GWDave pretty much hits the nail on head...the devil is in the details.


.

[bamasam]

Hi all - not Sam but Sam's husband. I figured I'd give you an answer as opposed to allowing my wife to translate.

Dave - an LLC affords the owners several advantages from both a tax and legal perspective. Most importantly, an LLC provides the group of owners the luxury of seperate legal liability. As you may know, an LLC, like an S or C corp, may exist and operate as a separate legal entity under the law. Hence the need for an operating agreement.

As far as an operating agreement is concerned, our agreement has a contra asset account for the individual items you mentioned - R&M, ect. The reserve account can be administered in sevaral ways, i.e. credited annually, quaterly, monthly, or in an other fashion the partners deem most appropriate.

With respect to management of mortgages, the most common issue involves "joint and several" liability with a single mortgage on the investment property. That is, does each and every partner want to be liable for the other partners share of a single loan. I would suggest that no one opt for that position for the very reasons you mention in your post - change in economic status of one partner can adversely impact the other partners fiscal position.

The best situation is to have each partner pay cash for their respective share of the home and not mortgage the investment property. That will allow each partner the peace of mind to know that the property is not collateralized by any other partner. In a perfect world, that ends the mortgage issue.

Now, short of that, if the partners wish to place a mortgage upon the investment property, it can be structed in a couple of fashions to limit the exposure and joint and several liability of the partners. One way to do this is to allow the LLC to hold the mortgage as opposed to the individual owners. There are some other hurdles that must be addressed by the partners and the underwriter of the mortgage for this type of arrangement to be successful (i.e. a significant portion of cash down at time of purchase and a mortgage balance considerablly less than the appraised value of the investment in question).

Additionally, if each owner in the partnership wishes to collateralize the home with an individual liability, then this would need to be done through a single lender. For example, if there were 3 partners, each partner could apply for an individual mortgage collateralized by the investment in question through Bank X. If Bank X issued three individual mortgages to each of the three partners, then Bank X would be the only secured leinholder of mortgages on the property. At that point, rank secured order of the mortgages would not be an issue (1st secured creditor, 2nd secured creditor, ect) becasue there is only on lienholder and it is Bank X exclusivly.

The daily/weekly/monthly administration of the payments can be handled in a number of ways. In our agreement, the partners will assume officer postions in the business (as is the case in any business). The officer roles defined in our agreement carry certian responsibilities. Of course, you also may consider outsourcing payment services to a thrid party.

I am sorry for the dissertation. As a disclaimer, I must say that the statment herin are netither specific professional accounting nor legal advice. You should always discuss these issues with your CPA or attorney prior to engaging in any such investment.

Casey

[bamasam]

In one sentence, what is your main objective that requires you to set up an elaborate partnership scheme with strangers vs. renting or buying outright?

GWDave pretty much hits the nail on head...the devil is in the details.


.

In one sentence....

To enjoy the benefits imparted by ownership while sharing the expenses associated.

Casey

[SHELLY]

In one sentence....

To enjoy the benefits imparted by ownership while sharing the expenses associated.

Casey


Joe is selling fractionals in Watersound @ $275 a pop. They've done most of the hoop-jumping for you.




.

[SHELLY]

I am sorry for the dissertation.
Casey

After all that, one would NEED a vacation. :cool:





.

[bamasam]

Joe is selling fractionals in Watersound @ $275 a pop. They've done most of the hoop-jumping for you.




.


Actually we want to be in WC. There are fractional WC PRC but they don't meet our needs as well as a SFH. WS is not our target community but thanks for the suggestion.

[bamasam]

After all that, one would NEED a vacation. :cool:





.

Yup. I always do my homework. Actually, we will be back down for a little RR as well as business next week!

:D

[GreenWaveDave]

Hi all - not Sam but Sam's husband. I figured I'd give you an answer as opposed to allowing my wife to translate.

Dave - an LLC affords the owners several advantages from both a tax and legal perspective. Most importantly, an LLC provides the group of owners the luxury of seperate legal liability. As you may know, an LLC, like an S or C corp, may exist and operate as a separate legal entity under the law. Hence the need for an operating agreement.

As far as an operating agreement is concerned, our agreement has a contra asset account for the individual items you mentioned - R&M, ect. The reserve account can be administered in sevaral ways, i.e. credited annually, quaterly, monthly, or in an other fashion the partners deem most appropriate.

With respect to management of mortgages, the most common issue involves "joint and several" liability with a single mortgage on the investment property. That is, does each and every partner want to be liable for the other partners share of a single loan. I would suggest that no one opt for that position for the very reasons you mention in your post - change in economic status of one partner can adversely impact the other partners fiscal position.

The best situation is to have each partner pay cash for their respective share of the home and not mortgage the investment property. That will allow each partner the peace of mind to know that the property is not collateralized by any other partner. In a perfect world, that ends the mortgage issue.

Now, short of that, if the partners wish to place a mortgage upon the investment property, it can be structed in a couple of fashions to limit the exposure and joint and several liability of the partners. One way to do this is to allow the LLC to hold the mortgage as opposed to the individual owners. There are some other hurdles that must be addressed by the partners and the underwriter of the mortgage for this type of arrangement to be successful (i.e. a significant portion of cash down at time of purchase and a mortgage balance considerablly less than the appraised value of the investment in question).

Additionally, if each owner in the partnership wishes to collateralize the home with an individual liability, then this would need to be done through a single lender. For example, if there were 3 partners, each partner could apply for an individual mortgage collateralized by the investment in question through Bank X. If Bank X issued three individual mortgages to each of the three partners, then Bank X would be the only secured leinholder of mortgages on the property. At that point, rank secured order of the mortgages would not be an issue (1st secured creditor, 2nd secured creditor, ect) becasue there is only on lienholder and it is Bank X exclusivly.

The daily/weekly/monthly administration of the payments can be handled in a number of ways. In our agreement, the partners will assume officer postions in the business (as is the case in any business). The officer roles defined in our agreement carry certian responsibilities. Of course, you also may consider outsourcing payment services to a thrid party.

I am sorry for the dissertation. As a disclaimer, I must say that the statment herin are netither specific professional accounting nor legal advice. You should always discuss these issues with your CPA or attorney prior to engaging in any such investment.

Casey

Does anyone have any local attorneys they would recommend that have experience in creating these types of partnership operating agreements and setting up partnership structures like you mention that mitigate liability and financial risk for situations that must involve mortgages among partners?

[Geo]

Hi all - not Sam but Sam's husband. I figured I'd give you an answer as opposed to allowing my wife to translate.

Dave - an LLC affords the owners several advantages from both a tax and legal perspective. Most importantly, an LLC provides the group of owners the luxury of seperate legal liability. As you may know, an LLC, like an S or C corp, may exist and operate as a separate legal entity under the law. Hence the need for an operating agreement.

As far as an operating agreement is concerned, our agreement has a contra asset account for the individual items you mentioned - R&M, ect. The reserve account can be administered in sevaral ways, i.e. credited annually, quaterly, monthly, or in an other fashion the partners deem most appropriate.

With respect to management of mortgages, the most common issue involves "joint and several" liability with a single mortgage on the investment property. That is, does each and every partner want to be liable for the other partners share of a single loan. I would suggest that no one opt for that position for the very reasons you mention in your post - change in economic status of one partner can adversely impact the other partners fiscal position.

The best situation is to have each partner pay cash for their respective share of the home and not mortgage the investment property. That will allow each partner the peace of mind to know that the property is not collateralized by any other partner. In a perfect world, that ends the mortgage issue.

Now, short of that, if the partners wish to place a mortgage upon the investment property, it can be structed in a couple of fashions to limit the exposure and joint and several liability of the partners. One way to do this is to allow the LLC to hold the mortgage as opposed to the individual owners. There are some other hurdles that must be addressed by the partners and the underwriter of the mortgage for this type of arrangement to be successful (i.e. a significant portion of cash down at time of purchase and a mortgage balance considerablly less than the appraised value of the investment in question).

Additionally, if each owner in the partnership wishes to collateralize the home with an individual liability, then this would need to be done through a single lender. For example, if there were 3 partners, each partner could apply for an individual mortgage collateralized by the investment in question through Bank X. If Bank X issued three individual mortgages to each of the three partners, then Bank X would be the only secured leinholder of mortgages on the property. At that point, rank secured order of the mortgages would not be an issue (1st secured creditor, 2nd secured creditor, ect) becasue there is only on lienholder and it is Bank X exclusivly.

The daily/weekly/monthly administration of the payments can be handled in a number of ways. In our agreement, the partners will assume officer postions in the business (as is the case in any business). The officer roles defined in our agreement carry certian responsibilities. Of course, you also may consider outsourcing payment services to a thrid party.

I am sorry for the dissertation. As a disclaimer, I must say that the statment herin are netither specific professional accounting nor legal advice. You should always discuss these issues with your CPA or attorney prior to engaging in any such investment.

Casey

Casey,

Wanted to say thx for taking the time to post all of this. It is very valuable information and it is greatly appreciated!!!!!!!!!!!!!!!!!!!!!!!!

Pls continue to add value to the boards as you already have...:clap:

GW

[Beach Runner]

Joe is selling fractionals in Watersound @ $275 a pop. They've done most of the hoop-jumping for you.




.
On another thread that offer had been dissected, and the conventional wisdom is that it's not a good deal for anyone but Joe.

[SablePoint]

Does anyone have any local attorneys they would recommend that have experience in creating these types of partnership operating agreements and setting up partnership structures like you mention that mitigate liability and financial risk for situations that must involve mortgages among partners?

My wife and I are about 60 days from completing construction of our WaterColor home. We had just begun testing the waters for potential partners (after spending many months researching and putting together our partnership plans) when Sam & Casey contacted us to express their interest. We met with them at WaterColor about 10 days ago to show them our home. Ultimately Sam and Casey were more interested in having a house directly across the street from Camp WaterColor in Phase 2, whereas our house is located in Phase 3 (which we absolutely love). But Sam and Casey obviously believe, as we do, that forming a partnership is good way to go and provides many obvious advantages.

For our partnership agreement, we retained the leading attorney in the field of Vacation Home Co-Ownership (Andrew Sirkin, of Sirkin Paul Associates). Eighty percent of Mr. Sirkin's business comes from writing vacation home co-ownership contracts. We spent a lot of time and substantial $$$ in consultation with Mr. Sirkin... and ultimately recieved a comprehensive customized partnership agreement that addresses virtually every conceivable contingency based on his years of expertise in this field. We've since had three potential partners, who are also attorneys, who reviewed the document and were impressed with the detailed nature of the document and were satisfied that it comprehensively addressed every issue.

If anyone is considering developing a vacation home partnership such as ours, I highly recommend Mr. Sirkin's service (see more at www.TICLawyers.com).

One of the things that Mr. Sirkin told us was, contrary to everyone's concern about financing in these partnership agreements, that he rarely sees problems in this regard. If the partnership agreement is properly structured (which ours is), it addresses all of those contingencies. Interestingly, Mr. Sirkin said the most frequent problem that he sees is minor bickering reagrding decorating and furniture being rearranged by other partners. And this is exactly what several friends and aquaintenances of mine who own vacation homes with partners report (of course, our partnership agreement also addresses these issues in detail as well).

The bottom line is that vacation home co-ownership is not a new phenomona. People have been doing it for decades... and smart attorney's have developed refined agreements to insure that they operate smoothly. Partnerships are becoming more and more prevalent because it just makes good sense to share usage and expenses on a property that you will only use part time.

I wish Sam and Casey the best of luck in putting together their partnership. By splitting expenses such as Taxes, Insurance, Maintenance, Repairs, and HOA fees among, for example, four equal partners... it ultimately makes ownership in premier communities such as WaterColor more reasonable and affordable, and within the reach of many who may otherwise not be able to own such a fantastic vacation home.

Another thing that I like about it is that it keeps us from having to rent out the home. While there seems to be many people who are quick to criticize having partners in a vacation home (while not really having any experience or knowledge on the subject)... having a home that you must rent out to make ends meet is a much more undesirable option to me. I've done it before and I don't want to do it again. I want to be able to use the property... not feel like I'm costing myself money by using it in the high season when I could be renting it. Dealing with bad rental management companies who take exorbitant commissions for inferior service, and renting to tenants who destroy your property with no repurcussions (because the management company doesn't want to alienate a "good repeat customer")... are all things that I can choose to do without this time.

I plan to enjoy using my home in WaterColor... not getting stressed out over constant damage by renters every time I go on vacation. And since wear and tear is ultimately going to occur even with partners, I like the idea that I'll be sharing the costs with my partners and not footing the bill 100% by myself. Of course, sharing the expenses is not just limited to wear and tear. Consider that you'll need to paint the exterior of the house every 5 years (or less if you don't use good quality paint and a good painting contractor). Depending on your financial situation, this can be an expensive proposition if you must pay for 100% of the cost. Or it can be easy to handle if you're sharing the cost with partners. Even better, if you have a good partnership agreement and a properly run LLC, you'll be escrowing funds into a Maintenance and Repair account so that when these expenses come due, you'll already have the cash available and you won't even feel the pain of having to write large check.

Indeed, a properly structured and operated partnership can make ownership and usage of your vacation home much less stressful than owning the home wholly on your own. And... all the while... the home will continue to benefit from long-term appreciation as well as any other home in WaterColor (which may not be the case with products like fractionals such as the PRC).

By the way, this is NOT a fractional or timeshare. The term "Fractional" essentially refers to creating several smaller "fractional" deeds instead of having only one deed to a property. St. Joe doesn't allow fractionals other than their PRC. Anyone who calls it a fractional or timeshare doesn't know what they're talking about.

This is not any different than 4 college buddies buying a vacation home together... with the exception that we're not necessarily all college buddies. Instead we may just be people who share the same affinity for WaterColor. Because we're not necessarily best friends, it can actually make for a stronger partnership because it can be operated more professionally and less emotionally.

More important than the issue of how to finance the property... is simply the desire and will (and decision) to own in WaterColor. Once you've made the decision that you want to own and vacation in WaterColor for years to come... then you can begin to look at your different alternatives. If you can afford a home wholly on your own... then this discussion is probably not applicable to you. The PRC has been mentioned many times before, and I personally believe that partnering in a custom home is a much more desirable alternative versus a buying into a 2 BR condo (think re-sale here).

So if you want to own in WaterColor... and either cannot, or do not want to, buy wholly on your own... and aren't interested in a condo or a PRC fractional... then partnering is a logical, reasonable, and viable alternative.

And if you've decided that a partnership makes sense to you, you can try to put together your own small group to buy a property. Or, if you're lucky enough to know of an existing partnership group with an opening (such as ours in Phase 3, or Sam & Casey's plan to do something in Phase 2), then maybe you can get in on it.

If you do your due diligence in reviewing any partnership that you are considering... then you always have the option of NOT going through with it if you (or your attorney) feel that that particular partnership is not right for you.

I would advise those who are interested to not listen to the many who make off the cuff remarks without having any experience with what they're talking about. Do your own investigation and make an informed decision.

Our partnership already has an awesome home ready to be viewed by potential partners, the financing is already in place, and every issue has been addressed in detail in our partnership agreement. If you have interest, I invite you to visit www.129Bluejack.com, and/or contact me for more information... Wayne@Strobel.com or PM me.

Thanks,
Wayne Strobel

[Bobby J]

Thanks Wayne! Allot of useful info!

[moepaul]

Several vacation clubs are offering homes in Watercolor, http://www.private-escapes.com is one of them. Helium report gived reviews on each club

It may be worth looking into

[Franny]

There was an incident recently in Watercolor where investors have three homes under contract. They then begin selling fractional. Watercolor has stepped in and refuses to allow the investors to close. Personally I believe this is a great way to allow people to own without all the financial stress.However, St Joe is attempting to block these types of sales although they sell fractionals in their condo's in Watercolor. :idontno:

[bamasam]

I don't think they could legally step in and stop a couple of people from getting together and buying a house though. And, honestly, with the way the market has slowed you'd think they would want to promote sales any way they can. I know the market is picking up some, but not like in 04-05. Joe tends to change it's own rules. Look how they extended the build out dates on lots. They added 2 additional years because they recognized the fact that people who purchased lots after several flips were not able to flip nor build within their alloted time because it has become a lot more expensive (once you add in the cost of the lot) to build and the interest rates have gone up. Even some builders are feeling the strain. I've had some builders offer to remain a partner in a home if we wanted to buy an ownership interest in one they've got on the market because they can't get them sold. And to be fair, St Joe really wants their communities to build out and be successful so I think they won't be trying to block any sort of purchase. Anyway, that's just my thoughts...

[scooterbug44]

I think advertising that you are selling fractionally and quietly selling to a LLC that just happens to be several families combined for vacation fun would be two different things in St. Joe's eyes. The first is competition, the second is a home w/ one "owner".

[SablePoint]

There was an incident recently in Watercolor where investors have three homes under contract. They then begin selling fractional. Watercolor has stepped in and refuses to allow the investors to close. Personally I believe this is a great way to allow people to own without all the financial stress.However, St Joe is attempting to block these types of sales although they sell fractionals in their condo's in Watercolor. :idontno:

There were 3 homes purchased (or attempted purchase) back in March or April by the Private Escapes company mentioned above. These are probably the same 3 you're talking about Franny. For whatever reason, JOE has issues with their business model. I'm assuming that JOE knows more about them than we do and has a valid reason for stopping it.

But with regards to a few individuals buying a house together, there are already many small partnerships in WaterColor where several families have purchased a vacation home together.

I believe that JOE makes a distinction between the two.

Thanks,
Wayne

[SHELLY]

There were 3 homes purchased (or attempted purchase) back in March or April by the Private Escapes company mentioned above. These are probably the same 3 you're talking about Franny. For whatever reason, JOE has issues with their business model. I'm assuming that JOE knows more about them than we do and has a valid reason for stopping it.

But with regards to a few individuals buying a house together, there are already many small partnerships in WaterColor where several families have purchased a vacation home together.

I believe that JOE makes a distinction between the two.

Thanks,
Wayne

According to Private Escapes' website, they've already got 3 properties in Watercolor. What that company does is purchase properties around the world and then it sells memberships in the "club." The members pay a big chunk of change upfront to buy in, then pay annual dues and a daily rate for use of the property. Apparently, members are also entitled to get a portion of the profit if the club sells a property. :roll:

The sales pitch of these destination clubs is that one can vacation at spectacular locations and facilities (condos, homes, castles, yachts, villas, etc) around the world without having all the ownership hassles (down payments, mortgages, insurance, taxes, property/furnishing upkeep and management) and not being tied down to the same old-same old place year in and year out.

Good concept at first blush, but some of these clubs have already filed Chap 11. Wouldn't surprise me in the least to find out later on that some of the 'founders' of these clubs (and their friends and relatives) have unloaded their depreciating "vacation investments" (at a hefty profit to themselves) into these clubs.

I also don't doubt that JOE is frowning on the private sector "fractional" sales concept--JOE's balance sheet is bleeding red and it is now doing fractional sales gigs itself. If JOE has a scintilla of business sense left--and is able to write and rewrite the rule book--it will do what it must to crush the competition.

.

[tistheseason]

We have a fractional partnership (we still call it fractional even though we only have one deed and we each have shares in the LLC). So far so good. We love that our house is not on a rental program -- it's furnished nicer than a rental and it's better taken care of. All of our partners had to pay cash and no one can leverage the house. I think it's a great way to have a vacation house. . . .but I'd be careful to select good partners!

[bamasam]

We have a fractional partnership (we still call it fractional even though we only have one deed and we each have shares in the LLC). So far so good. We love that our house is not on a rental program -- it's furnished nicer than a rental and it's better taken care of. All of our partners had to pay cash and no one can leverage the house. I think it's a great way to have a vacation house. . . .but I'd be careful to select good partners!
For the most part that's what I've been hearing. Sounds like you have come up with a great way of running your partnership and that's what we're trying to do.

[Jollydog]

We have been putting partial ownership groups (5) together since 1982. It's a great way to have your OWN place at the beach. We have one in Blue Mountain and one in Orange beach. We are putting one more together in OB and also one in Blue Mountain(if you are interested). We have also discovered over the years it can be a good investment, if you do it right. As your friends discover what you have, some will become very interested in joining your group if a share becomes available as they will from time to time. Good luck.

[bamasam]

A quick question for anyone with expereience or point-of-view, how do agents in the SoWal area view the "partnership" proposition in terms of an opportunity for an earned commision?

I ask b/c we have had mix results (not in the SoWal area) in the past with agents regarding parternships.

We see the partnership option as a win-win situation for agents. First, we will use an agent to to purchase the home. Now we may not have our partnership complete when we make the purchase so we may list additional partnership shares through an agent.

To us this seems like a win now and win later situation for an agent.

Thoughts?

[Franny]

There were 3 homes purchased (or attempted purchase) back in March or April by the Private Escapes company mentioned above. These are probably the same 3 you're talking about Franny. For whatever reason, JOE has issues with their business model. I'm assuming that JOE knows more about them than we do and has a valid reason for stopping it.

But with regards to a few individuals buying a house together, there are already many small partnerships in WaterColor where several families have purchased a vacation home together.

I believe that JOE makes a distinction between the two.

Thanks,
Wayne

True and it is comforting to know St Joe/Watercolor is protecting their properties which in turn protects owners investments.