First of all thx for reading, here is the situation my grandfather has an extremly large storage unit for sale approx 40 ft by 120ft he is asking 45000 for the unit with everything in it, he is 82 yrs old has been in the resale bussiness for the past 30yrs going to flea markets, yard sales, auctions, etc. Mostly 2$ items but it is packed floor to ceiling, I would estimate inventory 25 to 35thousand. He cannot afford the taxes at 2000 a yr on commercial building. Im a mariner overseas at this time but will be returning shortly and he said he would talk about financing the building for me, Here is what I would like to do, 8 to 10yrs at 0% interest he would be happy with any extra income at this time. I would like a contract with an attorney, but I would like the deed transfered over. Even though I would not own it outright I would like to on paper to possably use as leverge in the future??? My plan also would be to sell off the inventory and eventually in the future break the building down into multible storage units approx 30 at 50$ a piece. Nothing to compare building to in small community in Lebanon Pa found 2 apprasail sites 1 had building valued at 20 thou another at 90 thou, Electric only, no plumbing, not temp controlled. Would just like feedback and thoughts thx you BP community.
0% interest is a problem. The IRS will impute/apply an interest rate....right now I think it's around 4%. Your grandfather would be taxed for this computed interest, whether he receives it or not. Might as well include the minimum interest rate.
@Wayne Brooks what if the deal was structured as he was giving me the building free n clear. And the 45000 was written up in a contract as a personal loan.
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