All Forum Posts by: George Dale

@Chris Seveney

Quote from @Sergey A. Petrov:

A promissory note spelling out the details should be sufficient. You could even turn it into a regular deed of trust and record it. They should claim interest (not principal) as income on their side and you, as expense, on your side.

 Thank you Sergey.

@Jeff Copeland:

Thanks for the info and the link to the article.  They are not and don't want to be in the landlord business, or the foreclosure business.  They are looking for a steady return on money that is currently colleting <2% interest.  They understand the risks on the investment side, and also know my financial situation well and are not worried about default as much as how making this loan could impact them in other ways - thus their questions.

Understood on tracking the balances - is an "official" document I need to give them so that they can report the interest income for tax purposes.
Thanks again!

What documentation do I need to consider when borrowing long term private money from family (30 year amort/10 year balloon)?  I am working with a close family member on a loan.  There were be no lien's on the property to secure the loan.  They have 2 concerns that I need help making them feel comfortable with the process:

How does the money they transfer to me not get flagged as a gift that exceeds the annual gift allowance to family members?

If in the future - they need to apply for any type of assistance (long term care), how do they show that they were not "unloading" their assets to not have to use them for care or medical expenses.  Note: They have more than adequate assets and would be unlikely to qualify for this assistance anyway or I wouldn't be accepting a loan from them but I want to give a educated answer to their question.

I assume some sort of contract or promissory note answers both of these questions, but is there anything else? 

One more question for my understanding - do I need to somehow document to them how much interest and principal they receive annually for any tax purposes (1099 or other document?).

Thanks for the guidance!

I believe I heard that Watkins Glen also has imposed some restrictions on STR, is that true?

Could be that they are trying to get more details on the property so they can put a fake listing up and scam perspective renters.

@Sophie Li

Maybe check out Greek Peak Area in Cortland that could generate winter rentals. Or Lake Placid area in Adirondacks. Greek Peak will be hard to be a money maker but may be ok to offset some costs of a second home.