Rental Property Investor · New Orleans, LA · Member since 2019 · 5 posts · 2 votes
My mother in law recently inherited her mother’s home, I am looking to purchase the home and turn it into a residential assisted living facility. Is there any way I could purchase the home without putting my own money up, besides private lenders?
@Jaysen Medhurst thanks. She is co inheritor with her brother they are currently in succession. They want cash up front so owner financing is out. I guess I will have to come up with the dp. It’s going to appraise for $30-40k more than I purchase it for as is. Great location on 2 lots.
@Jesse Smith, you can definitely do it without a RE agent. You still want (need) to use a lawyer and probably a title company.
Keep in mind that this will be a "non-arms length transaction." This means the $30-40k between purchase and FMV may be seen as a "gift" by the IRS. You should be able to get around the taxes using the gift exemption, but you definitely want to go over the entire situation with a good CPA (I am not one!). Make sure you understand this from all angles.