When billionaires Steve Wynn and Thomas Peterffy announced their plans last April to jointly purchase a record-setting $108 million property in Aspen, Colorado, it not only sent shockwaves through the Rocky Mountain home market, but also showed how two parties working together in a home transaction can gain leverage.

“You’re increasing your purchasing power, and it’s especially beneficial for someone who won’t live there full time,” said Miami-based Corcoran broker associate Eloy Carmenate.

Carmenate noted that sometimes wealthy buyers will pursue a property together because it splits up the responsibility of taking care of these larger homes, which are often labor intensive. They can also split up other assets that might come with the home, such as cars, seasonal equipment, or in the case of Miami clients: yachts.

“Miami is always active year-round, so the co-ownership (of some of these assets) is not uncommon and now shared,” he added.

Both Carmenate and New York City-based Douglas Elliman agent Michelle Griffith have seen friends join up on transactions most often for second homes and investment properties. The purchasing power also creates new investment opportunities, and potential to take advantage of what’s known as the “1031 exchange,” a way to push off tax liability by taking income from one investment sale and putting it into another.

“There are a lot of people investing in New York City, and they’re not living in the space,” Griffith said. “It will become an income-producing property.”

In terms of the transaction, Carmenate said he’ll often advise his clients to ask for a 10% nonrefundable deposit when multiple groups are the buying party to provide a bit of security during due diligence.

And from the buyers’ perspective, pooling resources for a luxury home purchase isn’t as easy as shaking hands on a combined budget.

Working with friends, family and colleagues to purchase property has long been a popular route for some buyers, but it also requires tough, honest conversations—especially when there are larger numbers at stake.

For instance, Griffith said that the transaction can be tough when family members are involved due to the emotions and complexities of having relatives on the same side of a transaction.

“There are a lot of legal complexities and different nuances that can be worked out at the beginning, but it’s always a risk,” Carmente said.

One of the more common approaches is to create a co-ownership agreement that everyone in the buying party will have hammered out before they even start looking at properties. The agreement typically sets out a defined budget, tenancy rights and who will have which stake in said property. The agreement can also detail preferred finance methods or closing plans, especially in higher-value deals that are often bought with cash.

Perhaps more importantly, these agreements can also define specific exit strategies when one or both parties are ready to sell.

The groups could agree on whether one person has the right to sell on his or her own, or if they would need signoff from the rest of the ownership group before proceeding. It may also outline specifics about how one group could buy out another’s stake, or really any other nuances that could arise.

Adding to this is an increasingly common approach of buying the property through an LLC or other organized entity, as was the case with Wynn and Peterffy. In these cases, the entity manages the risk and the potential profit of any sale while also being a vehicle to fund ongoing home expenses like maintenance, utilities and insurance. When compared to people of average income, there may be less risk for multiple wealthy parties buying or selling a luxury home because each person is more able to absorb the financial risk that comes with any home purchase.

In seasonal markets like Aspen, a co-ownership agreement can also detail rental or timeshare plans when the property isn’t in use. The agreement would define when and how it can be rented when the primary owners aren’t there. With a large home like the one Wynn and Peterffy purchased, there’s likely a very specific plan in place for letting others enjoy the largesse of the Aspen expanse.