Home Buying in Houston>Question Details

Mike, Home Buyer in Phoenix, AZ

Can I buy a condo for my son and then he will buy it from me?

Asked by Mike, Phoenix, AZ Mon May 13, 2013

I want to buy a condo (all cash) for my son that is moving to Houston to become a 1st year M.D. He can't qualify right now to purchase it himself as he does not have a paycheck history. Once he qualifies, which should be 2 months from what we were told, he will buy the property from me by taking out a mortgage. Are there any issues here that could cause a problem....like arms length transaction or titling issues?

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9
An arms length transaction is an IRS tax question not a real estate question
0 votes Thank Flag Link Tue May 21, 2013
You will be paying many closing costs twice, title policy, home owner association transfer fees, recording fees, tax certificates and on . Does this sound like anything you would be willing to do for two months?
0 votes Thank Flag Link Tue May 21, 2013
You could buy the property and resell it to him immediately by carrying the financing yourself. You would have an income stream for years to come or he could pay you in full b\y refinancing into a new loan.

A local Realtor should be able to help you to buy the property and refer you to a local attorney who could do all the paperwork for the sale to your son.
0 votes Thank Flag Link Tue May 14, 2013
So someone has already told you about arm’s length transactions but it didn’t jive with your plans?
That is one problem; the type of income your son will receive also comes in to play. If he is a W2 employee I don’t know why 2 months is the magic number. One paycheck is my minimum, unless he is on probation on the new job. If he is going to receive a 1099 instead of a W2 then 2 years is the number.

If he were my son, I would have him do a short term lease until he decides if he likes Houston, then buy a condo on his own. If he made it through med school he should be able to find a place to live.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Tue May 14, 2013
Mike ...

It's done all the time. Please use a Realtor to represent you for the purchase ... you'll need someone to act in your best interests. The seller will certainly have someone on his/her side. For the subsequent sale, I suggest that you get in touch with a real estate attorney, just to make certain that all bases are covered.

Congratulations on your son's success. Houston is the world's leading medical center ... if you're going to get sick, this is the place to be!

If I may be of further service, please feel free to get in touch.

Regards ...

Al Geffon
(713) 213-6350
al@geffon.net
Web Reference: http://www.har.com/algeffon
0 votes Thank Flag Link Tue May 14, 2013
Yes u can I sell a lot of Condos in Houston and work with many Investors who are doing just that! Good Luck. Kerry Wald
0 votes Thank Flag Link Mon May 13, 2013
I am working with a family that has the exact scenario right now. The son is coming here to do his residency and has no "job" or paycheck so he cannot qualify. Dad is buying and he will take out his own mortgage once he can qualify.
Once in a while a big box lender has a problem with too many transactions too close together (as in flipping), but there are many lenders that will have no problem with it. If I may be of service, please feel free to contact me.
Jeanne
0 votes Thank Flag Link Mon May 13, 2013
Hey Mike,

I just spoke with My Loan Officer and she said as long as He buys it back at the same price you paid for it and you show no profit you will be ok.

http://www.closewithaddie.com is her website if you would like more information.

If you need any Realtor services let me now!

Thanks,

Kevin Sechelski
Realtor
832.545.5503
HouseHuntingHouston.com
0 votes Thank Flag Link Mon May 13, 2013
The answer to that question is yes.
0 votes Thank Flag Link Mon May 13, 2013
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