buying out partner

[Anthony Zotto]

Hello BP!

Long story short, I am trying to buy out my partner with no money down. He is my brother, great relationship he just needs funds for another project. I am not on the deed. We have a bunch of equity. Here is my plan do you think this will work?

1. Add me to the deed

2. I cash out-refi in my name only on mortgage

3. I take him off deed 

thanks!

AZ

[Basit Siddiqi]

There may be gift tax consequences of adding you and taking him off the deed.

best of luck 

The buyout price should factor in as if he had just sold the property and paid expenses to sell the property(agent fees, transfer taxes, etc)