Posts Tagged ‘Demand Loan’
Buying a home with parents-in-law as investors: - How to structure the purchase to protect all involved?
Saturday, December 26th, 2009My wife and I are buying a house. My parents in law want to invest in this house too, so are putting 0k into it (cash). We will get the balance via a mortgage and will live in the house paying all living expenses. Parents in law are doing this purely as an investment, meaning that when we sell in a few years they want to extract their profit relative to how much of the property they own.
We want to make sure we can take advantage of mortgage interest tax deductions, homestead exemption etc. They want to make sure they don’t have to pay tax on any profit they make.
How do we do this? Do they ‘gift’ us the money, then after we close do a Quitclaim deed? if we do that, when we sell the house can we split the proceeds any way we want?
Or do we do this as an ‘on-demand’ loan from them?
Or do we do this as a joint investment and close together?
It seems more complicated than it needs to be.
