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Pulling out Equity From Grandparents Home To start investing, Best way to do this??
Long time podcast listener. Been trying to break into real estate investing. Here is the scenario that I need some advice on.
My grandparents have a property in Perris Ca. They owe about $25k on the mortgage. The property is not in the best condition. In its current condition, it's worth closer to $130k - $150k. After repairs property will be worth $220k - $250k Conservatively.
My mom is trying to purchase the property from my grandparents. Offer them about 100k, pull out enough equity, or get a loan big enough to cover repair costs. After repairs, pull out the rest of the equity to have a chunk of money to repeat the process. Were trying to come up even or cashflow as much as possible. Current rents are about $1600 for the type of property. Will waiting till rates come down be the best move?
To pull this plan off, what would be the best process? Forming an LLC? Owner finance, pull out equity, then fully pay off owner after final equity extraction once repairs are completed.
Any advice and who to talk to would be helpful thanks!