Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 6 years ago, 11/08/2018

User Stats

10
Posts
0
Votes
Evan Keturakat
  • Rental Property Investor
  • Spokane, WA
0
Votes |
10
Posts

Buying a vacant home of my parents (paid for) with my R.E. LLC

Evan Keturakat
  • Rental Property Investor
  • Spokane, WA
Posted

Hello BP! I am a real estate investor looking at a new opportunity and is looking for some advice..

The Deal: My mother has a rental home that has sat vacant for most of the last 10 years. The home is paid for but needs some serious updating and then some. I have been approaching her for years trying to either manage it for her, help with the needed repairs, etc.. but to no avail. Recently she has given consider to selling it to me and we have been figuring out the numbers. The home ARV is probably close to $250 and the tax assumption is there as well or higher (this was never appealed) I assume the home was worth something in the ballpark of $180 needing a kitchen/bathroom and lots of updating of plumbing and possibly some electrical too. I offered just below that and she decided it was worth much less and is giving me a deal if not a gift, I am shooting more toward a deal since I know gifting could hurt either of us with the current taxes and I also planned to buy under my LLC and keep separate from my personal belongings.

My questions are how should I go about the purchase and sale of this home? She is open to seller financing so it can be a note that I am not going to carry. Also note: I hoped to purchase that home into my LLC so am I still considered as being gifted from a family member and taxed likewise? This I know will hurt their tax base and she is retired.

I have begun some demo as I started to work out the details but am thinking I should stop until this is finalized.. Thoughts? Concerns? Suggestions? Any advice would be appreciated

User Stats

939
Posts
407
Votes
Corina Eufinger
  • Rental Property Investor
  • Oconomowoc, WI
407
Votes |
939
Posts
Corina Eufinger
  • Rental Property Investor
  • Oconomowoc, WI
Replied

If she is open to seller financing by all means take advantage of it.  You can save on interest, loan fees, etc.  In most cases you don't receive title until the loan is paid off.

A gift can only be up to $15,000 (in 2018) before it is considered a taxable gift for you.  I don't believe you can gift something to a business but i would be wrong.  

Turbotax wrote a decent article on gifts.  https://turbotax.intuit.com/tax-tips/estates/the-g...

You definitely need to consult an accountant.  100%.  

User Stats

10
Posts
0
Votes
Evan Keturakat
  • Rental Property Investor
  • Spokane, WA
0
Votes |
10
Posts
Evan Keturakat
  • Rental Property Investor
  • Spokane, WA
Replied

@Corina Eufinger Thank you the advice. I am pretty sure the seller financing will go through however have to look into the steps of working with a Title company and setting up escrow. This is all new to me. I look forward to reading the article. Thank you for the link

BiggerPockets logo
Join Our Private Community for Passive Investors
|
BiggerPockets
Get first-hand insights and real sponsor reviews from other investors