Oddball house buying questions

[Juddog]

Originally posted by: Marlin1975

Originally posted by: mshan
delete.

Reformat

FDISK.

 

[mshan]

Just a heads up about IRS penalties for loaning money to a family member and not charging the federally mandated minimum interest rate (found this link by googling for intra family loan interest rate):

"If you lend more than $10,000 to a friend or relative, charge at least the applicable federal interest rate - currently just under 6% on long-term loans. Otherwise, the IRS will treat foregone interest as income to you and as a gift to the borrower, under complicated rules that require the imputing of interest on below-market-rate loans." Link
(I think current limit is previously mentioned $12000 per person, but you would need to verify for yourself)

 

[Juddog]

Originally posted by: mshan
Just a heads up about IRS penalties for loaning money to a family member and not charging the federally mandated minimum interest rate (found this link by googling for intra family loan interest rate):

"If you lend more than $10,000 to a friend or relative, charge at least the applicable federal interest rate - currently just under 6% on long-term loans. Otherwise, the IRS will treat foregone interest as income to you and as a gift to the borrower, under complicated rules that require the imputing of interest on below-market-rate loans." Link
(I think current limit is previously mentioned $12000 per person, but you would need to verify for yourself)

I thought that it would count as a "gift" as opposed to "loan".

 

[Juddog]

Update - asked family about the possible gift of equity, they said no way - they want the full price. Oh well it was worth looking into at least. Even my mom wasn't willing to cut a portion of equity.

Family is annoying that way - they say they want to keep it in the family, talk about how nice it would be to be able to come back later and visit there, but don't offer any deals, tell me straight up that if I want to buy it I can make an offer to the real estate agent they hire who will take a cut of 6%.

We're talking about a little dinky house with $5,000 to $10,000 worth of work to make it livable that's only 1500 sq. feet, and the house itself only worth maybe $50k. Chances are whoever buys the property will bulldoze the house and build a new one. I'd be insane to purchase the house at that price with that much fixing up to do.

/shrug

Nothing lost nothing gained.

 

[JS80]

Originally posted by: Juddog
Update - asked family about the possible gift of equity, they said no way - they want the full price. Oh well it was worth looking into at least. Even my mom wasn't willing to cut a portion of equity.

Family is annoying that way - they say they want to keep it in the family, talk about how nice it would be to be able to come back later and visit there, but don't offer any deals, tell me straight up that if I want to buy it I can make an offer to the real estate agent they hire who will take a cut of 6%.

We're talking about a little dinky house with $5,000 to $10,000 worth of work to make it livable that's only 1500 sq. feet, and the house itself only worth maybe $50k. Chances are whoever buys the property will bulldoze the house and build a new one. I'd be insane to purchase the house at that price with that much fixing up to do.

/shrug

Nothing lost nothing gained.

They wouldn't even give you a 6% discount by using no broker?

Fuck them, buy the house, and do a joint venture with a developer.

 

[waggy]

Originally posted by: Juddog
Update - asked family about the possible gift of equity, they said no way - they want the full price. Oh well it was worth looking into at least. Even my mom wasn't willing to cut a portion of equity.

Family is annoying that way - they say they want to keep it in the family, talk about how nice it would be to be able to come back later and visit there, but don't offer any deals, tell me straight up that if I want to buy it I can make an offer to the real estate agent they hire who will take a cut of 6%.

We're talking about a little dinky house with $5,000 to $10,000 worth of work to make it livable that's only 1500 sq. feet, and the house itself only worth maybe $50k. Chances are whoever buys the property will bulldoze the house and build a new one. I'd be insane to purchase the house at that price with that much fixing up to do.

/shrug

Nothing lost nothing gained.

thats kinda sad actually.

ohwell laugh when it gets sold to someone who tears it down.

"so sad. it could have still been in the family. at least now i know money is worth more then family".

 

[mugs]

Originally posted by: JS80

Originally posted by: Juddog
Update - asked family about the possible gift of equity, they said no way - they want the full price. Oh well it was worth looking into at least. Even my mom wasn't willing to cut a portion of equity.

Family is annoying that way - they say they want to keep it in the family, talk about how nice it would be to be able to come back later and visit there, but don't offer any deals, tell me straight up that if I want to buy it I can make an offer to the real estate agent they hire who will take a cut of 6%.

We're talking about a little dinky house with $5,000 to $10,000 worth of work to make it livable that's only 1500 sq. feet, and the house itself only worth maybe $50k. Chances are whoever buys the property will bulldoze the house and build a new one. I'd be insane to purchase the house at that price with that much fixing up to do.

/shrug

Nothing lost nothing gained.

They wouldn't even give you a 6% discount by using no broker?

Fuck them, buy the house, and do a joint venture with a developer.

Yeah, they obviously have no interest in keeping it in the family if they're hiring a real estate agent.

 

[Juddog]

Originally posted by: JS80

Originally posted by: Juddog
Update - asked family about the possible gift of equity, they said no way - they want the full price. Oh well it was worth looking into at least. Even my mom wasn't willing to cut a portion of equity.

Family is annoying that way - they say they want to keep it in the family, talk about how nice it would be to be able to come back later and visit there, but don't offer any deals, tell me straight up that if I want to buy it I can make an offer to the real estate agent they hire who will take a cut of 6%.

We're talking about a little dinky house with $5,000 to $10,000 worth of work to make it livable that's only 1500 sq. feet, and the house itself only worth maybe $50k. Chances are whoever buys the property will bulldoze the house and build a new one. I'd be insane to purchase the house at that price with that much fixing up to do.

/shrug

Nothing lost nothing gained.

They wouldn't even give you a 6% discount by using no broker?

Fuck them, buy the house, and do a joint venture with a developer.

Yeah, my mothers response to me was that they wanted to put it on the market to see the most they could possibly get from it before I made my offer. /shrug

Doesn't exactly sound like she wants family to have it after all. I guess her telling me on the phone that she wanted family to have it just meant that she wanted me to pay the maximum the market would offer on the property including real estate commission fees. I get the impression now that she was trying to use me to get the house off the market quick at maximum value. Looks like I got played.

 

[Juddog]

Originally posted by: waggy

Originally posted by: Juddog
Update - asked family about the possible gift of equity, they said no way - they want the full price. Oh well it was worth looking into at least. Even my mom wasn't willing to cut a portion of equity.

Family is annoying that way - they say they want to keep it in the family, talk about how nice it would be to be able to come back later and visit there, but don't offer any deals, tell me straight up that if I want to buy it I can make an offer to the real estate agent they hire who will take a cut of 6%.

We're talking about a little dinky house with $5,000 to $10,000 worth of work to make it livable that's only 1500 sq. feet, and the house itself only worth maybe $50k. Chances are whoever buys the property will bulldoze the house and build a new one. I'd be insane to purchase the house at that price with that much fixing up to do.

/shrug

Nothing lost nothing gained.

thats kinda sad actually.

ohwell laugh when it gets sold to someone who tears it down.

"so sad. it could have still been in the family. at least now i know money is worth more then family".

I will personally laugh at them if any of them complain when it gets tore down and turned into condos or whatever. One minute I'm getting told on how it holds so many memories and what a shame it would be for an outsider to buy it, next thing I'm expected to sit and wait while the real estate agent finds the highest possible value for it, then make them an offer on it - meaning I would probably end up paying over market value.

I got the feeling now like I was getting sold some snake oil. One of these relatives is the same who fell for a pyramid scheme in the past.