|
Could someone who knows about owner financing or rent-to-own give me some information? More than just the basic concepts, but how to actually take all the steps to transfer it legally. Documentation, tax implications, etc I’ll try to explain my situation as much as possible to paint the clearest picture. I moved back home to save money while going to school, and now that I’m done, the plan was to move out. However, instead of paying $1,000+ a month to a landlord which I get no return on (though I know renting is not always a waste) I plan to use the $1,000 to buy my parents’ house instead and split it into two separate units. It already is sort of a two family. It has kitchens on both floors, but one was made into a bedroom, go figure. I’m actually set to inherit the house, so there’s no real reason to buy it from them, but at the same time, not only do I owe them for their help over the years, they have nothing saved for retirement, so they could use the extra income once they retire. I’m not entitled to help, but I want to. I would rather the money I would otherwise spend on rent go to them. Plus, I can bring in a friend to rent out a room and get an extra $500 income coming in. My parents aren't planning on going anywhere or buying a new place, so getting all of the money up front is not an issue as far as I know. I definitely can’t get a home loan with the position I’m in (not a great credit history, will only be making around 32k a year), but I can more than afford the money I would pay them. I just don’t know how the owner financing works other than the seller is the one assuming the risk. My father said he is willing to do that, so once we sort out all the legal issues we’ll move forward with it. The house is entirely paid off, no mortgage. The difference between owner financing and rent to own is that with owner financing I take over as the owner up front and pay the seller as the agreement states, right? And with rent to own, I pay the seller rent money, and an agreed upon percentage goes to the purchase price until I have enough equity to get a mortgage? Either would work for me, but I would like to avoid the home loan if possible. Saves on closing costs, interest, PMI, etc The last issue is getting the money to fix up the home. I plan to be the one to pay for all remodeling. Like $100,000+ worth. But If I took over as the owner, I doubt I could get a home equity loan, or at least not with favorable conditions that my parents could get. What would the legal implications be if they were to take out a loan to start the renovation process and then I were to buy it? I’m sure there are things I’m missing, but this is for starters. Moneyball fucked around with this message at 20:43 on Jan 28, 2013 |
#
¿
Jan 28, 2013 20:38
|
|
|
|
| # ¿ May 14, 2024 01:31 |
|
|
Does anyone have any experience with or knowledge of quitclaim deeds? My parents have been sitting on a house that has been paid off since probably before I was born. They inherited it from my grandmother, and it was my father's childhood home. There are a ton of things they need to fix or replace (old furnace, drafty windows, bathroom remodel etc) but won't use the equity they have in the home due to fear of the unknown, even if the efficiency of the furnace alone would pay for itself in a few years. They've never had a mortgage or even a credit card. I think the first car loan they have ever had was in the early 2000s. I don't know the value of the home, but the median price of homes where I live is near $350,000 so that is a lot of equity sitting there. I offered to buy it from them via owner financing if they let me take it and divide it up into separate units- it's already set up to have two kitchens, but needs more separation. That would be a win-win. They would get more monthly income (on something they would just give to me anyways) and I'd get an asset in my name sooner than saving for years for a down payment (that not have to pay rent and rent out a room to a friend for extra money) My father would do it, but my mother refuses to live in less space. A friend of mine who lives at home told me his mother added him to the title, although they still have a mortgage. I didn't know that was possible. My father pretty much said he would give me the house right now if he could. I wanted to approach him at some point to see if he could use the equity in the home to help me get a condo (again, with extra rooms to rent out) but I read somewhere that money lent by family isn't helpful in being approved for a mortgage. If I was on the title, I figure it would be easier to get approved to buy a new property. It's a huge relief not having a mortgage to pay off, but it could be so useful... Moneyball fucked around with this message at 02:19 on Mar 6, 2014 |
|
#
¿
Mar 6, 2014 02:16
|
|
|
I realize half of that was unrelated to quitclaim deeds, and maybe I was referring to the wrong type of document, but all the renovating and buying talk would only come into play after having ownership transferred to me, if possible. I will certainly have to look into it more. I was skeptical about the idea of just having property transferred over to me, but whatever my friend did worked for him, I guess. He doesn't have massive tax issues that I know of, but then again, I think he's on the hook for the mortgage if something were to happen. I guess I'll have to do it the old fashioned way, and *shudder* save up for it myself. I'm actually more than cool with that, I was just hoping to make the most of equity. Moneyball fucked around with this message at 02:48 on Mar 6, 2014 |
|
#
¿
Mar 6, 2014 02:45
|
|
|
OSU_Matthew posted:And the great hipster migration of the... Teens I guess? What do even you call this decade? Forgettable.
|
|
#
¿
Apr 8, 2016 15:29
|
|
|
Nail Rat posted:drat man, if that' s not worth Johnnie Walker Blue what is? He wants to keep the friendship, I imagine
|
|
#
¿
Apr 26, 2016 16:54
|
|
|
If you can't beat 'em, join 'em.
|
|
#
¿
Nov 28, 2016 13:34
|
|
|
Taking thread title ideas, since I changed a bunch of them for halloween. Or I can just change it back
Moneyball fucked around with this message at 03:59 on Nov 7, 2018 |
|
#
¿
Nov 7, 2018 03:53
|
|
|
https://forums.somethingawful.com/showthread.php?threadid=3929213
|
|
#
¿
Jun 24, 2020 16:32
|
|
|
Motronic posted:It was here (BFC) and was brigaded by......I don't really remember. Moneyball? Who was it. (or is this poop you don't want to touch) Some people did something. I have given my opinion on someone starting a new thread for investment property, but no one has done it yet. I'd say try seeing how it would go in Ask/Tell but I wouldn't want to make Grand Fromage suffer like that.
|
|
#
¿
Jul 22, 2020 01:39
|
|
|
Johnny Truant posted:Yeah that thread had people asking on the first loving page how to commit fraud and, iirc, how to evict section 8 housing. Yes, brigaded. If memory serves, the first loving page was about ten years ago with most of the people no longer part of the forums.
|
|
#
¿
Jul 22, 2020 12:43
|
|
|
Sorry, I don't lick boot, you must be thinking of someone else.
|
|
#
¿
Jul 22, 2020 13:08
|
|
|
bawfuls posted:yes, law breaking is the problem with landlords This isn't the landlord thread. You came here to get advice about buying a home and people have been polite and helpful. Don't ruin this one too.
|
|
#
¿
Jul 23, 2020 00:06
|
|
|
Man what the hell. Politics was bad enough in the landlord thread, don't poo poo the one up too.
|
|
#
¿
Sep 14, 2020 01:56
|
|
|
Don't doxx me
|
|
#
¿
Sep 14, 2020 11:54
|
|
|
My condolences
|
|
#
¿
Sep 14, 2020 18:22
|
|
|
Dik Hz posted:Moneyball asked me to help out as IK in this thread and the House-owner thread. I'm scared he's going to restart the landlord thread and make me IK that also. We'll cross that bridge when we get there. 
|
|
#
¿
Sep 24, 2020 18:28
|
|
|
|
| # ¿ May 14, 2024 01:31 |
|
|
Cyrano4747 posted:poo poo, I'd be trying to find out if the shotguns transfer with the house. Psh what do you know about guns?
|
|
#
¿
Sep 25, 2020 17:55
|
|