How can I prevent my daughter from wasting money on a new car and go forth purchasing as co-owners on an income property?

Q:  My daughter is scheduled to finish college this spring. I have $40,000.00 saved that we didn’t use on her tuition. I suggested that we purchase as co-owners an income-producing property. She clearly does not want to either live in and/or assist me in managing the property. However, she does not object to this notion. Question: When she is given the money, how can I avoid her wasting it on a new car and go forth with the co-ownership plan? What’s your advice?

A:

Jerry Feeney: This is a good question.  Once your gift is given to your daughter, you have no rights on the use.  So, your concern is valid. Contact an attorney so an agreement can be drawn between you and your daughter as to use of the money. We have a vast array of income producing properties on www.elliman.com.

Dottie Herman: Your daughter might be more committed to this business investment if you can demonstrate to her the return on investment she will be able to participate in the future. In addition, her interest in this asset will help her build her credit and net worth, which will be so important to her as she moves forward with her career and her personal housing needs. If you need our help in finding a Buyer Specialist, we can assist you.