Property with Ex Girlfriend Looking for Best Solution

[Christopher Dunson]

Alright, very exciting stuff.

I flipped a house last year, and during the sale put it up on AirBNB hoping for a bit of cashflow during the sale. The property did excellent, and a buyer fell through. My long time girlfriend at the time suggested her purchasing the property for below asking price, renting the property as a vacation rental, and splitting the profits. I did some numbers, followed through with that, I paid her closing costs, and I still profited on the flip. Seemed like a win win.

She also had invested money with me on another multifamily deal which has yet to be finished. 20k to be exact. 

The important part of the outline we had for the deal was:

1-We would Split all equity 50/50 after the following:

2-Her 20k returned with agreed return if not already paid by the other deal.

3-My 20k reduction in PP on property paid back upon sale.

Despite in my opinion, the Air BNB being a business, and that should remain separate, and all terms the same rather we are together or not, she just wants the property out of her name, and for me to have full responsibility, ownership, and to have as little as possible, or nothing to do with the property.

There are conventional ways to do things that are perfect, and there are non conventional ways to do things that if done properly have a very high rate of success.

The loan is an FHA loan that I do not qualify for on my own at the moment, but may qualify for in 6-12 months.

So far, title has offered me the option of a quitclaim deed into my name and I will take responsibility of the mortgage and the entire ownership of the property. If I default, the property goes back to her, and I lose all. I'm looking to create a note between her and I with specifics with payments to the current property mortgage. If possible, to make her feel more secure include something regarding paying back her 20k within a certain time period or the property goes back to her as well. Maybe a 20k balloon within a time period. Then, in one or two years go and sell or refi the property to pay off her mortgage and heave the property completely in my name.

Another interesting RE situation that I'm sure has a solution.