All Forum Posts by: Mark McManus

Thank you all for your time and response... very much appreciated.

Grandmother has not lived in residence for over 40 years. I on the other hand have lived in home as primary residence for over 7 years and counting. House was built in 1952 for $19k. Its now worth $1.1MM. She should receive step up basis which is why the family trust is waiting till she passes to sell everything.

Interest rates are not huge concern at the moment, I have access to employee bank discount rates through my wife. And I believe eventually interest rates will eventually fall. Grandmother mental capacity is not good. She is 99 and my aunt is the executor and pay all bills and manages her trust for her. She is in assisted living community and i'm guessing she will eventually go straight to hospice within the next 6 months to year. Katie, you sound like you know a lot about this... would you be open to talking offline a bit more?

Brad, I am not familiar with Prop 19 and the changes that this took place or how they relate to this issue. Are there advantages? I do not qualify for Grandparent to grandchild transfer, and unfamiliar with inheritance and how this works with avoiding reassessment if a reassessment will be done either way once she passes... again, why I'm wondering if I can be added to title/deed would help me in this case.

To whom tax attorney's or CPA's... 

Would it be more advantageous to purchase a home in California from my grandmother and therefore she add me to on title; or wait till she passes (she is 99 yrs old) and then simply buy the home from the executor (my aunt) outright at full price?  Prices are declining but interest rates are going up. Also, the current property tax on this property is $800/annually and if I buy it outright from my aunt, the annual property tax will increase to $1200/monthly. Also, note how Proposition 13 might be a factor in determining best option.

This question stems from me wanting to buy now however what are the other pro's/con's to this? 

This is all very helpful. 

The trustor is my grandmother. She is 99 years old and probably last year living. My aunt is the executor and the property is probably the most valuable asset they have. There are 4 total beneficiaries (kids) and I am one of the beneficiaries son (grandson). It's worth about $1MM

I am looking for a few options to present a sale to all of part or one of them. One idea I had was to have my father (one of the beneficiaries) not take his 25% of the property inheritance, and keep the equity at lets say 25% and hold. I buy the property for $750k and make a deal to refinance after 5 years and pay my father off at the future value at 25%. Assuming he doesn't need the money. (I have one brother so there would need to be some agreement and language that if my father passed unexpectedly, that a percent would be as payout and not actual ownership percentage of the property, etc.). I am assuming that since my father would be on title, he has protection to get paid back his 25%. I also am assuming when we refinance to pay off his 25% that income would be tax free since its refinance and not counted as income? I know I would need to double check this. 

If all beneficiaries need the money, and therefore need to sell the house at fair market value, i'm hoping there are other options to pitch that again would make this win win for all.  Using a family friend agent goes without saying. I'm sure we all can find someone willing to help navigate the paperwork and represent both sides for a discount. 

Let me know if anyone see's anything else or has other ideas. I appreciate you all jumping in and taking the time to respond. Much appreciated. 

My family trust has a home I would like to purchase in Orange County, CA. I am looking for help to come up with few strategies to entice my family to sell to me vs. them throwing up on MLS. Hoping a seasoned RE investor or Lawyer can point me in the right direction.

Thank you Josh for replying. I have options when it comes to loan. I can do either. DTI isn't an issue either. I have options, so this questions isn't about what CAN i qualify for. I'm asking what is the best strategy, cheaper route long term and least amount of cash up front vs. X, Y, Z.

What would be the most ideal scenario? 

Fist time posting... Looking at purchasing my 1st short term rental and wanted to know if there is any strategy to the loan type i get.  Is interest only the best route and refinance later on down the road or since rates are so low, capitalize on this for long term gain and do conventional?