Selling half a house to a significant other

Buying & Selling Real Estate
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Selling half a house to a significant other

Eric C.
Investor · Grand Junction, CO · Member since 2017 · 207 posts · 201 votes

Here is the situation.  My 4 yr girlfriend and I are moving back to an area where I own a house outright.  It is currently rented, and my intent if I kept it as a rental was to cash out the equity as it is worth about 150k.  We used to live there together several years ago.  She wants us to either buy a place together, or let her buy half the rental house and we live in it.  I thought about the idea of quit claiming her on deed and then letting her get a cash out refi as an owner occupant for her half which she would just give me.  Is that a feasible way to do the transaction?

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Aaron Hunt
All Over, USA · Member since 2017 · 689 posts · 756 votes
8y
Originally posted by @Eric C.:

@Charlie MacPherson  Marriage does increase someone's likelihood of staying with someone that they resent and grow to despise with time, but feel obligated to stay with. I personally would rather have someone stay with me out of choice, not obligation. Apparently you would rather the opposite. It is quite possible your wife has wanted out for 38 yrs but due to moral or religious obligation, she stays with you. Or I could be wrong, but only your wife will EVER know.

On the topic at hand, I have no problem having something written up showing we each are 50% owners of the property, and if in the future we feel we would be happier not together, sell and divide. My question, of which you, Charlie, have been no help, is how to do that asset split now. How to sell her half the equity. 

This some suspect/millennial-ish if I've ever heard it.

So in summary: We have gotten to the point where OP is scrutinizing a 39-year-long marriage, and talking about feelings, choices and obligations, after asking internet strangers about selling HALF a house (what the actual F) to someone who could walk away whenever they feel like it just cause they find someone cooler than he? Triggered when there was a legitimate response which was more logical than the ridiculous question to begin with. She doesn't want to pay rent, but instead wants to buy a place together? Even if it means paying for half a property that you already own? Huh? We all know how this one is going to end...

*grabs popcorn*

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    @Eric C.  what was the name of that rock climber who free climbed El Capitan ??

    I think they showed it on 60 minutes and I think he did it without any ropes.. is that right

    if so it was the most amazing thing I have ever seen !!!

    sorry to change subjects but based on your Avitar thought you might recall that..

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  • Eric C.
    OP
    Investor · Grand Junction, CO · Member since 2017 · 207 posts · 201 votes
    8y
    Originally posted by @Jay Hinrichs:

    @Eric C.  what was the name of that rock climber who free climbed El Capitan ??

    I think they showed it on 60 minutes and I think he did it without any ropes.. is that right

    if so it was the most amazing thing I have ever seen !!!

    sorry to change subjects but based on your Avitar thought you might recall that..

     Alex Honnold - is the famous free soloist who does a ton of stuff in Yosemite, but Tommy Caldwell and Kevin Jorgenson were the two climbers to first "Free" the Dawn Wall on El Cap.  To Free Solo is to climb without rope protection, and to free climb is to climb without weighting a rope and to not use gear for progress, but you can have it there just in case.  

    Climbing is my passion, not real estate.  I climb outside about 100 days per year.  

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Eric C.:
    Originally posted by @Jay Hinrichs:

    @Eric C.  what was the name of that rock climber who free climbed El Capitan ??

    I think they showed it on 60 minutes and I think he did it without any ropes.. is that right

    if so it was the most amazing thing I have ever seen !!!

    sorry to change subjects but based on your Avitar thought you might recall that..

     Alex Honnold - is the famous free soloist who does a ton of stuff in Yosemite, but Tommy Caldwell and Kevin Jorgenson were the two climbers to first "Free" the Dawn Wall on El Cap.  To Free Solo is to climb without rope protection, and to free climb is to climb without weighting a rope and to not use gear for progress, but you can have it there just in case.  

    Climbing is my passion, not real estate.  I climb outside about 100 days per year.  

    Being a SF Bay Area kid I have been in Yosemite valley many times.. when I saw that guy climb up El Cap it was the most awesome thing I think I have ever seen..

    Real estate has been good to me all these years but yes there is much more to life than worrying about cash flow and rentals tenants and stuff.. keep your perspective.

    We live in the Jet age for 750 bucks you can be around the world in 15 to 16 hours.. all these people that get so focused on being retired or living on their rentals AS soon as they can to me they miss many of the pleasures of a rounded life.. hopefully if they do achieve their dreams they will stop and smell the roses.

    I had one guy on BP write me a private message one time and said I post to much and I just not have a life.

    my reply well maybe so from his perspective but in the last year I have been to  Isreal  Thailand Hawaii 2 times London  British Columbia to fly fish and about 12 other locations in the US ( those are primarily business) so don't let the peanut Gallery here on BP bug you !!! 

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  • Eric C.
    OP
    Investor · Grand Junction, CO · Member since 2017 · 207 posts · 201 votes
    8y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Eric C.:
    Originally posted by @Jay Hinrichs:

    @Eric C.  what was the name of that rock climber who free climbed El Capitan ??

    I think they showed it on 60 minutes and I think he did it without any ropes.. is that right

    if so it was the most amazing thing I have ever seen !!!

    sorry to change subjects but based on your Avitar thought you might recall that..

     Alex Honnold - is the famous free soloist who does a ton of stuff in Yosemite, but Tommy Caldwell and Kevin Jorgenson were the two climbers to first "Free" the Dawn Wall on El Cap.  To Free Solo is to climb without rope protection, and to free climb is to climb without weighting a rope and to not use gear for progress, but you can have it there just in case.  

    Climbing is my passion, not real estate.  I climb outside about 100 days per year.  

    Being a SF Bay Area kid I have been in Yosemite valley many times.. when I saw that guy climb up El Cap it was the most awesome thing I think I have ever seen..

    Real estate has been good to me all these years but yes there is much more to life than worrying about cash flow and rentals tenants and stuff.. keep your perspective.

    We live in the Jet age for 750 bucks you can be around the world in 15 to 16 hours.. all these people that get so focused on being retired or living on their rentals AS soon as they can to me they miss many of the pleasures of a rounded life.. hopefully if they do achieve their dreams they will stop and smell the roses.

    I had one guy on BP write me a private message one time and said I post to much and I just not have a life.

    my reply well maybe so from his perspective but in the last year I have been to  Isreal  Thailand Hawaii 2 times London  British Columbia to fly fish and about 12 other locations in the US ( those are primarily business) so don't let the peanut Gallery here on BP bug you !!! 

     Well Said!!!  In my death bed, I will not say "I wish I would have traveled less".   Always wanted to fly fish, but haven't tried it yet.  There is great climbing up your direction at Smith Rocks outside of Bend, I have been there many times.    

    0Reply
  • Tanya F.
    Rental Property Investor · Madison, WI · Member since 2013 · 629 posts · 339 votes
    8y
    Originally posted by @Eric C.:
    Originally posted by @Charlie MacPherson:

    @Eric C. I suppose you could reach a contractual deal where you're both on the deed, but why would you do that if you're not married to her?

    If for whatever reason your relationship sours, you could have a nightmare on your hands.

     A marriage is certainly no way to guarantee that a relationship won't sour.  She doesn't want to pay rent, and I don't blame her there.  Our options are we buy a different place together, or I can sell her half of my current place.  I would then reinvest the proceeds to get a different rental property.

    My partner and I own four houses together. We've been together 20 years. Not married. 

    TIC

    1Reply
  • Gary Barella
    Flipper/Rehabber · East Brunswick, NJ · Member since 2018 · 64 posts · 152 votes
    8y
    Is your girlfriend a mobster? In Jersey, the only time we see nonsense like that is when someone’s getting squeezed.
    2Reply
  • Andrew M.
    Rental Property Investor · San Diego, CA · Member since 2016 · 73 posts · 55 votes
    8y
    Wait until you are married. Much less risk and much easier process.
    1Reply
  • Tanya F.
    Rental Property Investor · Madison, WI · Member since 2013 · 629 posts · 339 votes
    8y

    @Eric C. it wouldn't let me mention you in the updates I just added above- so reposting:

    We bought our first property together when we'd been together for 3 years, and at that point we'd only been living together for one year.

    AND both of our names are on all the mortgage loans, and three out of the four titles. The house where we both live together has just me on the title deed but both of us on the loan and the HELOC. No additional paperwork. We have much of our finances intertwined. We have our separate accounts, too. Sounds like you guys are like us.

    1Reply
  • Marian Smith
    Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
    8y
    I think you got a lot of “personal” type responses because you included person information. And your question has a simple answer, provided by Jay but easily googled, so it was assumed you were not part of a power team with re assets, cash and a stated investment philosophy. Do whatever you want. Why even ask for help?
    0Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    8y

    I can't stop laughing so hard when I read this stuff. I mean I am dying here! 

    🤣🤣🤣🤣🤣
    0Reply
  • Charlie MacPherson
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    8y

    @Eric C.  Sorry - I didn't intend to start a firestorm.  

    I just wanted to point out that there are significant risks to the idea that you proposed.  If you understand the risks and are willing to accept them, good on ya.

    1Reply
  • Alison Horton
    Investor · Berkeley, CA · Member since 2015 · 10 posts · 4 votes
    8y

    Wow, what a crazy thread. Sounds like a straight up TIC to me (get the language straightened out with a lawyer so you know exactly what the risks are and think hard about how you can minimize them, housemate to cover if she bails and you need the income, whatever). We do them all the time around here, married or not. Everyone was so quick to judge you based on the entirely irrelevant marriage issue I don't know if I want to ask my question. I'm looking for someone to become an equity partner buying a share in my house. I have a beautiful 1 bedroom apt ADU in the basement in a great location but I don't know if I'm just going to get dumped on.

    2Reply
  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    8y

    @Alison Horton, SSSSSShhh!!! The animals were almost asleep!  

    By the way, your idea is intriguing.  I've seen contemplation of this kind of "ticing out" a SF residence a couple of times in the last few weeks.  It's hard to believe that prices in the Bay have risen to that point.  But they have.  And it does make ever so much sense to buy a % interest in a house than to rent if that's your druthers.  The devil's going to be in the structure of the deal of course.

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  • Alison Horton
    Investor · Berkeley, CA · Member since 2015 · 10 posts · 4 votes
    8y

    Still have their contact info?

    0Reply
  • Account Closed
    Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
    8y
    Originally posted by @Jay Hinrichs:

    @Eric C.   geez I answered this question .... what I laid out is absolutely the ONLY route to legally do this.. next question.. ???

    Yes but the marriage discussion is so much more fun to read!

    1Reply
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