All Forum Posts by: Devin Arand

Quote from @Bonnie Griffin Kaake:

@Devin Arand  If and when your parents pass, the property will/would be inherited by his heirs at current market value. If I were one of your siblings, I would get an appraisal or use the most current appraisal and ask you to pay their shares before assuming the property. Therefore, if the market value/appraisal shows it is worth $160K and your parents owe $103, the difference of $57K is split between you and your siblings. You would then owe your siblings their portion of the equity of $57K. 

Another option may be to find a tenant for your parents' space and invest whatever you need to invest to do the Tenant Improvements. If you could find a tenant willing to do their own TI, that could also be an option. Then, get something in writing from them that says you will be reimbursed at some time for the money you invest on their behalf. Then, hopefully, this becomes a cash-flowing asset. There may be other tax benefits available if they have done some improvements in previous years that were capitalized and can now be expensed. Just some of my thoughts. Talk to your CPA and/or a commercial real estate agent about the best strategy for this property and your situation.  

Bonnie, 
This is a great point, and one I'm sure my father would bring up (he is an attorney that specializes in estate planning). The nice part is that our family is all very close, and no one is looking to screw anyone over. If my siblings want some part of it, we all know that each of us have that right, so a conversation will definitely be had between the four of us, if this is something I pursue. 

Thank you for your response!

I need some advice here. I am wanting to get into Real Estate investing and am starting to get over the analysis paralysis part...I'm ready to jump in and conveniently think I have a great opportunity at the same time. My father is trying to retire. The only reason he's working, is so he can pay the mortgage/bills on his office space. Once he sells that, he will retire so he can spend more time with my mom. He just had it appraised at $160k, and owes $103k. He told me (not knowing that I may want to buy it), that he just wants to get out from what he owes, make enough to pay his realtor and maybe walk away with a few grand (let's say final sales price of $120k). IF, I can find someone to lease the office space, I think it'd be a great way to get into a property and have equity from the get-go, without any cash in the deal (besides closing costs). I'm thinking we can probably do a gift of equity for the money down (I'm a former commercial lender, and have done this before). Any advice or thoughts on this opportunity, or thoughts on the office space investing right now? Any suggestions help! Also, any advice on doing a deal with family? I've seen this go really well or really bad when family members do deals, and family is everything to me.