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Tax, SDIRAs & Cost Segregation

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Joseph Montes
  • Rental Property Investor
  • Chicago, IL
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31
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Help Settling a Land Contract Issue

Joseph Montes
  • Rental Property Investor
  • Chicago, IL
Posted Aug 20 2018, 20:32

Hi, I'm in a sort of weird situation with a land contract I'm trying to complete. The person I'm selling my property to has fallen on hard times and hasn't been able to pay me the last few months. Prior to this, they paid consistently. There is only a little over $3k left (a significant amount to me, but not enough worth trying to take him to court).

The odd part of this situation and where my question arises is that his mother is offering to pay what's left under the auspicious that I will not tell him she did so. She's afraid that if he knows he won't pay her back since he's down on his luck right now. She asked that if she does that I could just send her the deed. I already told her my contract is with her son. I don't want him to get upset and potentially have him take me to court if he finds out.

She's actually agreed to pay me the sum and let me hold the deed until she's gotten him to pay her back. She only asked if I could give her something notarized in writing to prove she paid. Am I still taking a risk if I go this route? I figured worst comes to worst I just send my land contract buyer the deed. I very much want to get out of this property and the finish line is in sight. Is there any other creative solution I'm missing?

Thanks for your help.

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