Sisters getting financial advantage, what can I do?

Zabggenz

My mother has owned a small piece of land with a single skin building for a while which she was letting out but now has so many problems as to be uninhabitable. It is in a tourist area in UK and my two sisters have now decided with my mother that they will get extra on their mortgages and build a new 3 bed house that the three of them will own (mum 40% and sisters 30% each). Sisters will have all the work done and control the business.

I am in rented accommodation and also the poorest of all of us and have not even been consulted about it until now when they have made most of the final decisions and all that is needed is for my mum to give the go ahead to the builders. None of us have "fallen out", it's just that they "thought I wouldn't have the money/be interested".

But hang on ..... how can I also take advantage of this situation? I have just been on Jobseekers and just started self employment but as it's new I have no financial clout at all.

What could I put to the three of them that could involve me? I could potentially oversee the work etc. better than them as my workload is decided by myself and they have work commitments that keeps them at home for a large amount of time or another idea I had was that I would want to rent it myself and move there. Is there some other way I could be involved even though I can't borrow money to put in? Would it be worth offering to be part of the business eg. put £1,000 in? Any ideas would be really welcome.

Kaminari_2

What is worrying you the most? That you feel that your sisters are getting more than you or that you were not given the opportunity to be a part of this business transaction?

Zabggenz

Of course it upsets me that I was not consulted as they might have guessed rightly that I couldn't get a mortgage at the moment, but they didn't even ask.

But putting that aside and accepting that they will be going ahead with this, I would like to improve my situation too so would like advice on what proposition I can put to them that they might accept that involves me eg. is it worth me saying I want to be part of it by offering £1,000 (maximum I could afford) in order to be part of it with a proviso that if I can put more in the future (I am phoning mum back later with my thoughts, she is going to get everything done through solicitor and written down). Or isn't it worth getting involved and the reality would just be me giving them £1,000? Or is there something I'm not thinking of or don't know about?

Kaminari_2

No offence but i would let it go, give them your support and move on and build your own little empire. If you are not in the right position at the right time then so be it. Maybe you could get yourself in the position so you can be a part of their next venture?
When you start to mix money and friends and family it can all go wrong, especially is there is an expectation that you are owed something, whether that be a portion of what your mother has put in or of just being consulted.

silvercar

Tell your Mum you feel hurt that you weren't consulted, but wish them the best with the project. Sounds like something that is going to cost a lot of money before it sees any profit.

If you have the sort of family where you can discuss inheritance without causing arguements, mention that you expect to inherit a third of your Mum's share when the time comes and that you shouldn't be written out of that part of her estate just because you have no involvement at the moment.

rjm2k1

It's a risk, you may not be in a position to take risks, they may lose money on it, can you afford to? Putting more money in later is not as simple as it seems and non-financial help may be difficult to value.

Toto

If it were me I would ask if you could buy in to the deal at a later time when you are financially better off. Perhaps they would all agree to sell a % of their share so in future years you are all included.

And, I would be a little hurt too that no one had discussed the idea with me. I understand that they rightly assumed you couldn't contribute but being a part of the discussion would have been nice. It is best to put that to one side though and see if you can do something in the future.

Zabggenz

Thanks for the replies.

They are hoping to give the go ahead this week and complete the new building by July and be renting it out straight away. It's in the south of England and in a nice area where they can probably charge a fair bit. Would I be stupid to not take the opportunity to buy into it even though it's 'only' £1,000?

Zabggenz

Any more ideas?

devils_advocate

The surefire way for you to make money out of this situation is for you to persude William Hills or Ladbrokes to accept your bet that one of the three will fall out in as big way with the other two sometime in the next five years. These sort of family situations will result in a blow up if they haven't been carefully thought out before hand, with agreements as to what to do in certain potential adverse situations. So far it seems taht they have just made assumptions about you (and no doubt felt it a good excuse to avoid cutting you in on some of the "undoubted" profit that they can see).

Have they decided on waht happens if there's a shortfall between rental income and the money they pay on the mortgages? What happens if there's any 'damage' from renting? Who decides if it's worthwhile to pursue renters? Your mother probably has the experience, without the need for cash, whilst your sisters have the need for cash but don't have the experience.

Its better to be on the sidelines watching this one, rather than being involved. If you had 'only' £1,000 in it, you'd be involved whether you liked it or not.

Zabggenz

devils advocate -

That makes sense, because I can't see either of my sisters wanting to let the other one be the decision maker. My mum says they will sell 'straight away' if they don't make enough but who will make that decision? That could be the point at which they fall out as you describe. Would they be able to 'sell straight away' in any case?

I think you're right about the £1,000 though, it would just end up as a 'donation' or involve me in any potential arguments!

I am still considering asking them if I can rent it for say a year or two as it's a nicer place than where I live, but again...... families.......:rotfl: They'd probably kick me out if they saw something more profitable? :rolleyes:

(They are the two ugly sisters and I am the poor unfortunate 'Cinderella'..... HONEST )