Posted on: 03rd Jun, 2012 05:37 am
I am looking for some advice on Real-estate and Tax issues.
My Daughter and Son-in-law live in California. My Daughter has asked us to help her and her husband purchase a house in California. We originally were just going to help them with the down-payment. But now it is looking like my wife and I are going to finance the house, in our name only and rent it to my Daughter (and son-in-law). Yes I know, never do business with family, but this is my daughter, I do not have a choice. Once they get their credit in better shape they are planning on purchasing the house from us.
I am looking for your advice on the best way to do this, and the things I need to watch out for.
We own a house in TX, that we currently rented out. We own some land (dirt) in NV. I am a TX resident my wife is a NV resident. We currently live/work overseas.
Looking forward to your response.
My Daughter and Son-in-law live in California. My Daughter has asked us to help her and her husband purchase a house in California. We originally were just going to help them with the down-payment. But now it is looking like my wife and I are going to finance the house, in our name only and rent it to my Daughter (and son-in-law). Yes I know, never do business with family, but this is my daughter, I do not have a choice. Once they get their credit in better shape they are planning on purchasing the house from us.
I am looking for your advice on the best way to do this, and the things I need to watch out for.
We own a house in TX, that we currently rented out. We own some land (dirt) in NV. I am a TX resident my wife is a NV resident. We currently live/work overseas.
Looking forward to your response.
Hello chrisfsheppard,
You should state in the letter of your intentions of regaining the money of the sum of money that you loaned them (especially if you agreed that it would be paid in the event of their separation). It may also be a option for you, given the terms of the agreement, to make an application for a special interest in the property in equity and trust.
:idea:
You should state in the letter of your intentions of regaining the money of the sum of money that you loaned them (especially if you agreed that it would be paid in the event of their separation). It may also be a option for you, given the terms of the agreement, to make an application for a special interest in the property in equity and trust.
:idea:
Hi chrisfsheppard,
If you finance the home, then I guess the property and the mortgage will be in your name. You and your wife will be liable for paying the mortgage, property taxes, property maintenance, etc. in full. In case you don't do so, the lender will foreclose the property and your credit will have a negative mark.
If you finance the home, then I guess the property and the mortgage will be in your name. You and your wife will be liable for paying the mortgage, property taxes, property maintenance, etc. in full. In case you don't do so, the lender will foreclose the property and your credit will have a negative mark.
Hi Chris,
What is the issue with your daughter and son in law credit? They may be able to qualify with the right lender on a FHA loan. You can also be a non occupying co borrower, which would help them qualiy. As for any tax or other consequences, you are liable just like anything else you would co sign for. The tax, is up to your tax advisor who taxes the tax benefit of the property and the closing. Contact me from this board if you need any answers. I am in CA and knowledgable of our real estate laws.
What is the issue with your daughter and son in law credit? They may be able to qualify with the right lender on a FHA loan. You can also be a non occupying co borrower, which would help them qualiy. As for any tax or other consequences, you are liable just like anything else you would co sign for. The tax, is up to your tax advisor who taxes the tax benefit of the property and the closing. Contact me from this board if you need any answers. I am in CA and knowledgable of our real estate laws.
