Posted by Laure on May 19, 2000 at 07:53:42:
I think the easiest way is for Grandma to get the loan herself. I know how the elderly think and my mom would say NO WAY ! But that would be the easiest. Also, since she gets her homestead exemption on the sale price… um there would be no taxes to her on the sale at any price. She could then just pay you each on the profit as contractors. No partnerships, less hassles. You could submit a Contractor’s bid to rehab the property and put together a formal plan with resale price, time to rehab, etc. She just pays you. You and she both, would be protected with a Repair contract, just like a regular contractor. If you don’t perform, you don’t get paid. She pays out money from the loan as funds are needed, so she will feel safer. The tax to you would be the same, and you wouldn’t have to form a partnership, file additional taxes, etc.
Hope I helped,