All Forum Posts by: April Leclair

@Jeshua Patrick

Hi Jeshua,

Thanks for your thoughts. I very much have thought about this for a long time considering all the rules of thumb you mentioned. However after further consideration (as they are just a quick rule of thumb) I opted to go for a long term prospect.

For clarification they have more than enough income to cover their monthly mortgage. Some are just not W-2 or eligible, and my mom who has a W-2 has a high debt to income ratio as she has 3 car loans under her name for my brothers. We also have a written agreement that specifies all the limitations and rights, and one of them is the sale of property. The fact that I am paying nothing down and still own equity was appealing to me. We’ll see how this turns out but it feels okay to me that I have several exit strategies if the loan goes south.

What things can you act upon after this transaction? Is it simply the best to wait and see? Is there anything else that I can do to protect our relationship and the contract we signed?

Thanks again!

Hello BP,

My name is April, and I have just finished closing a deal for my family’s house in Ellicott City, MD 21042. My mom and brothers live together, and they did not qualify for the income threshold, so I offered to become the primary borrower as I have a full-time job with good benefits. In return, we agreed on a 12:88 equity share between myself (12%) and my mom and brothers (88%). Of course the money is not liquid, and I became a lien holder without even having my own house (I rent now) but I did this out of 1) good heart and 2) get started on RE without risking too much. I never intend to sell this house as I would very much like to buy and hold once the property is paid off more and some move out. My mom will also have something left to give us for inheritance.

What are your thoughts, concerns, and opinions on this? I would very much appreciate your inputs.

Thanks in advance!

# Greensboro, NC

# Minneapolis, MN

# Ellicott City, MD

Hello,

I am co-signing (ie. I am listed as a primary borrower) a house for my family as they do not qualify for the mortgage with their income alone. In exchange, we are trying to set up an equity split as well as a way for me to contribute to the principal to add onto my equity. We are still in discussions on the specifics. What is the best way to go about this? We have a general idea of how the arrangement would look like, but we want to make sure we draft a legal document, if possible, among ourselves (to save on the attorney costs). Could you please provide any suggestions and/or advice?

Thank you in advance!