Quote from @Wyatt Wolff:
Quote from @Pollo Diaz:
That was a typo, I meant 130k, we don't know what it would be worth as the condition is pretty bad. So I just threw out the lower end. We are also trying to figure out the best numbers for tax reasons.
We are considering seller finance. I'm not sure how that all works. If we went the seller finance route, would the equity still be able to be pulled out, and a deal is made to pay the property off in a year? This is all new.
I'm running off of the assumption that this is in good faith, and you are just having a hard time phrasing it. So here is my best crack at it:
1/ Find out what the property is worth, in the condition it is currently in.
2/Tell your grandparents the plan, and ask them how they want to proceed. Explain that the house can be repaired and be worth more, and that you would like the OPPORTUNITY to do the repairs and refinance out, in order to make this into a family business.
3/ If they want to proceed, ask if you can take over the payments, do seller financing, etc.
Off to the races. Again. Get their buy in
Thank you for giving me the benefit of the doubt.
It's not fun being here in good faith, yet having everyone bully and think I'm trying to scam my grandparents. I'm quite surprised that this is how the community lashes out at new investors seeking advice in good faith. If it were in bad faith, I doubt I would be looking for answers here, such a highly respected community. We're just trying to look for solutions that help the family keep the most money in our hands by maneuvering the property in the best way. We are not too familiar with tax law etc. Ill explain below.
First, I think I need to be more clear about the exact situation so everyone can understand my mom's initial thought process.
My grandparents are both in their last days. They could be moving on from this life in the next few months to a year. The idea behind offering a bit under-market was to avoid any higher back-and-forth taxes. Upon sale, money goes to my grandparents, which my mom would then inherit after they pass in a few months. Not sure if that means it would be taxed twice? One might ask why not wait till they pass, well we don't know if it's going to be 2 months or another year. So we are exploring our options sooner rather than later. Since we are not too familiar with how taxes in those situations work, the initial post in this forum was our first attempt at figuring these waters out. I'm not trying to scam my grandparents. By all means, if it's better to offer them market value, for my mom to just inherit what she paid a few months later causing less to be paid out to the Gov, then so be it. If tax law works in our favor to pay over market value to then inherit it, which I doubt, then that is probably a better option.
Wyatt, I initially presented the idea of the opportunity to do repairs and refinance out and make it a family business. We just don't know how things can be complicated with my grandparent's short amount of time left. Thanks again for not assuming the worst of me. Any additional comments much appreciated.
