Can this be done? Is this even Legal?
Hi BP,
I recently got an idea, but I'm starting to doubt that it is feasible, and it may not even be legal for all I know. I know BP has people of all backgrounds so I expect someone might be able to answer my question. The situation is kind of complicated, but I'll do my best to explain it.
About three weeks ago I got a divorce. For the settlement, I transferred money from my retirement investments to her. Our plan was that since she would be going to nursing school for the next two years, I would give her enough to help her do that and find a very cheap place to live. It was a pretty lopsided agreement, but I want her to have the resources to have a future.
I recently had an idea that would be a win-win for us both. Instead of her using the money allocated towards finding a very cheap housing situation, she could give me enough to make a sizable down payment on a loan to get a property that is nice enough for me to rent out when she leaves. I would be able to get into real estate, and she could live in a decent place for a while.
But is that even legal? Can she give me some money she received by cashing the retirement money I transferred to her? If that is legal, is there some way that I could use that money to secure a loan that I probably couldn't get without a 40% down payment on a 100K house for rent? Would she have to be on the mortgage? Her credit is really bad. Thats why we think that to get a loan, it would have to be through me.
Thanks,
Tim