How to purchase and flip my parents home through my business?

2 Replies

Long story short, my dad passed away in 2006. My mom lives in the home which is 4BR/3.5 bath, finished basement and about 4200 sqft. She owes roughly $278k on the primary and is behind on the 2nd mortgage (about $40k) my dad took out before he died. She also is behind on the HOA for about $7-$8k. She can no longer maintain the home or payments by herself. (ARV in her area right now is around $500k)

What is the best a way that I can purchase the home through my LLC, fix what needs to be fixed (Paint, Carpet) and use what's left over to bring her out here where I live?

Originally posted by @Kyle Stone :

Long story short, my dad passed away in 2006. My mom lives in the home which is 4BR/3.5 bath, finished basement and about 4200 sqft. She owes roughly $278k on the primary and is behind on the 2nd mortgage (about $40k) my dad took out before he died. She also is behind on the HOA for about $7-$8k. She can no longer maintain the home or payments by herself. (ARV in her area right now is around $500k)

What is the best a way that I can purchase the home through my LLC, fix what needs to be fixed (Paint, Carpet) and use what's left over to bring her out here where I live?

 My suggestion is that you do not purchase the property from her. Just complete the work and bill her for supplies, labor and management fee. Let her sell it and realize all the profits tax free. Otherwise if you buy it and realize the profits, you pay taxes. If your mom wants to thank you for your help, she can gift you come money on the back end.

Thanks Joe for the quick response, that makes sense. I just need to find a way to get the money to rehab which will be about $20k for new carpets or flooring and paint in a few rooms.