I don't know

[Dominic]

Girlfriends Dad approached me about titling a condo he is buying in my name. Long story short he owns a property managing company a condo in one of property's he works with came up in a foreclosure situation he can pick it up for 60k and put a little money in it for renovation and then flip it for 150k or so he hopes. It would be a cash deal for him no credit issues but he is afraid that if whoever buys it see's his last name that they will bug him over every detail of repair and issue forever since he is the property manager and he sold the unit. I don't know what to think I told him as it develops let's talk about it. I feel like that issues could arise later for me when I go to buy a house for the first time or come tax time next year it would be a mess. What are the ups and downs of all of this?
Thanks
D

 

[BroncoMama]

While it seems like a seemingly innocent transaction, there are so many ways it could go bad. And in the end, you're the one that could get royally screwed if it's in your name. I know that's probably not what you wanted to hear, but I would run very fast in another direction.

 

[Tacoma]

Fraud, for one. Sticking YOU with all the BS, for two. You gain nothing from that.

Maybe not fraud, I'm not a real-estate lawyer. But it's shady at best.

 

[mesha]

I would stay clear. I don't know the guy, but if he is worried about every fix it detail then why do you want to worry about it?

 

[Dominic]

I was leaning in the turn and run direction. I just see more con's than pro's and I have good credit and would rather not screw that up. Plus if it doesn't sell then I have some property in my name for who knows how long. What that old saying don't do biz. with family or people you care about.

 

[rollover]

Just tell him to buy it in a DBA of his Property Management Company or his wifes maiden name. Problem solved. Protects him and leaves you out of it.

JM2C

 

[Milner]

My concern is if you do that, then when you are ready to by your own place, you will not be able to qualify for any of the first-time buyers programs....

 

[RockMonkey]

More importantly, you'll have the opportunity to pay the capital gains tax on his profit. He gets tax-free income, and runs you away from his daughter. A cunning plan.

 

[Tacoma]

VERY cunning.

 

[Kiel]

Bad deal, tell him you will buy it for 65k

 

[ricsrx]

I think you should buy it, your name, his money, when it sells its your profit. pay him his initial investment with intrest, the rest is yours.

Say go in on it with him on the repairs, put some of your time into it, split the profit with him.

yes some investments go bad, but if nothing is ventured nothing is gained.

I would do it if you are an equal partner on the project with something to gain.

I think he would understand the liabilites on your end and would compensate you for it. the profit moneies would be in you name, so you would be getting paid first.

by the way, just how good is the first time buyer savings any way?

 

[Dominic]

I agree with everyone's thoughts. It is far to risky and seems a little shady. If I was going in on the deal with him I can see helping but I have nothing to gain here and as stated above I could end up screwed.

 

[DOSS]

even those that you think are good people can pull some rotton deals: See Val Southwick

 

[OREGON85]

by the way, just how good is the first time buyer savings any way?

We just bought our first house and there wasn't anything we qualified for that was worth while. Just a $7500 tax credit that you have to pay back anyways.

 

[Cody]

What's wrong with putting it in his daughter's name?

I agree, use wife's maiden name, mother's maiden name, DBA of his company etc. I wouldn't do it if it were me unless I really trusted the guy and I knew I was going to be coming out on the other end with at least 25% of the profit (or more).

 

[RockMonkey]

What's wrong with putting it in his daughter's name?

It's still his last name, and it doesn't achieve his underlying goal of running Dom off.

 

[SAMI]

Why does he not like you Dom?

 

[Dominic]

Why does he not like you Dom?

So far we get along great. He even keeps offering to let me use his 2000 sq foot heated shop complete with welders, chop saw's, grinders, benders and every other damn tool I can only dream of at this point in my life.

 

[Kiel]

So far we get along great. He even keeps offering to let me use his 2000 sq foot heated shop complete with welders, chop saw's, grinders, benders and every other damn tool I can only dream of at this point in my life.

Yeah, come on over and use my dangerous machinery.