Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
I have a nephew that's expressed desire to buy a property that I manage for our family trust. It does not have a mortgage so 100% free and clear..
I recently had it appraised and have given him price, timing for him would be better after Jan 1st, for me it would be better before end of the year.
It's a 4 unit rental property with a SFH on same site, currently 100% occupied. I have another party that I mentioned to that I was planning on selling late this spring. I feel like I should give the nephew the opportunity but don't want to wait till January,, I was hoping to have some type of offer / purchase agreement by June thru a private party, as I didn't want to use a realtor.
Anyone else completed a " Sale between family members" I don't want to miss the window of this seasons timing for sale.
Should I expect Proof of funds and purchase agreement by May 1st to proceed, from nephew and if that isn't possible move on..
This is a difficult situation @Deanna McCormick as is often the case in family business matters. While the circumstances of your family trust management agreement are unknown to me, it sounds like you may have an obligation to protect the interests of the trust even if it means your nephew misses out on a real estate investment opportunity. Perhaps explaining your position to your nephew will help him understand your predicament and cause him to reevaluate the rigidity of his transaction timeline. Good luck!
Thanks for your input,, The obligations to the trust are basically as long at the rental property is generating income I am OK to keep the rental business going.. Sales price is basically supported by the appraisal so within the parameters of trust requirements as trustee on that,, ask is above appraisal. The reason for me looking to sell is that I would like my own $$ out of the trust so I can move on.. property has been in family over 60 yrs,, I feel also that prime time for selling is basically to start soon as is lake type property..
Is there any advantage to your nephew purchasing this property over any other similarly valued 100% occupied unit. Are you giving him a discount of some sort or not.
Either way you make the offer based on your needs and simply let him decide. The plus for him is he will get first option on refusal. It is a standards sale aside from the fact it is someone you know.
The advantage of a sale to nephew is 2-way he's familiar with the property a plus for him and I would basically be able not to have to prep for sale, he'd take it as is, he's currently renting part of the property so I know it serves his business and life style.
I want it to be as clean cut as possible so I'll have to set up further steps to meet what I feel is fair timing
Thanks for your reply I value your knowledge and expertise.