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Buying or Selling a Home/Purchase house from brother

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Expert: - 2/14/2010


Question
My brother bought a multi-unit house 2 years ago. My father gave him the down payment, with the agreement that he would be repaid on a monthly basis. Things have not worked out, and now my brother wants to sell the house to me. He has about 25% equity at current market value. He will sell it to me for a price equal to his outstanding loan, plus a little bit for him - in total, about 85% of current market value. My questions is, what would be the best way for me to finance the purchase. I am interested in putting as little cash as possible down, and paying as little interest as possible. I am in a high tax bracket, so I am also concerned about tax liability (for example, if he "gifts" me the equity). The property is in Massachusetts. Thanks for you help.

Answer
Hi D....

Financing will be private money only, unless you can get your father to finance his part also and both of you are on title, with the split being divided however it needs to be... you will not be able to put a separate loan on the property (second) unless it is private (hard money)... you pay more in interest, but don't have to come up with the cash out of your savings... and talk to your CPA about the write offs available... you may want to speak with a RE attorney in the area also, who understand family sales...  

Buying or Selling a Home

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Connie Wildasinn-Broker,GRI,RealtorŪ

Expertise

Broker,GRI,RealtorŪ, Investor since 1979. Buying or Selling Residential and Income/Investment Properties, How to understand the process, how to negotiate through the transaction, What to Look for - But more importantly 'What to lookout for!', How to tell if the time is right - or hold on and wait. Why not to listen to your friends and even your family members, Who really has your best interest at heart?. Understand why any market is a good market and how to spot a good investment for you! If you are looking in California.. check out my website www.MetroCalBrokers.com and if you need assistance in a neighborhood I don't service, I will locate a local agent to that area who actually knows their profession and can assist you in your needs!

Experience

4th generation Realtor in the real estate business, I have helped for over 2 decades clients buy and sell, I am the owner of a local brokerage in the Los Angeles /Long Beach area, and have been a top producing agent in the area since I became licensed. Working through a deal is different to every client, no two people or deals are exactly the same. Knowing how to bring professional advise to the table with clear and concise understanding of real estate world. I can help you handle your buying, selling and investing, managing a 1031 Exchange, working with Equity Sales, Probate, Pre-Foreclosure Regular and Short Sales there is little that I have not seen come across my desk over the decades!

Organizations
NAR, CAR, WCR, ABR, e-Pro, GRI, BKBIA, CHNA,SSG

Publications
Broker Agent Magazine Long Beach Business Journal Long Beach Press Telegram Signal Hill Tribune Grunion Gazette All Experts Zillow - Lead Agent - Advise Expert Truila - Advise Expert

Education/Credentials
Broker-owner, RealtorŪ, GRI,e-Pro, SSG-Short Sale Certified

Awards and Honors
Managing Broker for MetroCal Brokers. We merged my old brokerage with MetroCal this year, and we look forward to expansion and growth moving forward. We currently employ 30 Realtors and growing. 15 years running top selling agent in Long Beach, South Bay area California. Top Producer 5 years straight Re/Max, C21, Realtyworld.

Past/Present Clients
upon request = or check out our website www.MetroCalBrokers.com and check the Testimonials section!

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