How to structure this deal
Hi,
My aunt recently had told us that she's planning to sell her property in the next year so she can move to Maryland and be semi-retired. I've looked at her property and it seems like it could be a good rental deal bringing in 1% of rental income relative to its market value. I just need to know what's the best way to structure this deal if I would approach her of the possibilities.
She might need some money but not necessarily all of it. I believe she has about 80% equity of the value of the house now.
Should I ask her to owner finance?
Should I set up an LLC to purchase the house?
I just want to make sure that it's a win-win for both of us. I'm not looking to take advantage of her, otherwise we'll just sell to the highest person we can sell it to. Thank you!
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#1 Innovative Strategies Contributor
- Lender
- The Woodlands, TX
Since it’s her personal residence, she can take advantage of capital gains exclusion. Best for her is probably selling cash and reinvesting proceeds.
What about a "subject-to" type of deal? Basically you would take over the mortgage for your Aunt and as part of the deal you could pay here a down-payment that could go towards her new home in MD.
Pace Morby on the forum is the foremost expert on "subject-to" and reading some of his previous posts and his book would be a great start.
