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Old 09-10-2017, 03:57 PM
 
1,207 posts, read 1,524,426 times
Reputation: 1123

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Quote:
Originally Posted by NYC refugee View Post
She makes six figures. And her husband works and has VERY good medical insurance.
Why have you lent her money in the past then? Is her high income a recent thing? It still sounds like she has either a real or perceived lack of money. Or a sense that you have it better than she does therefore she deserves to get as much out of the house deal as she can get.
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Old 09-10-2017, 04:04 PM
 
Location: North State (California)
4,559 posts, read 719,489 times
Reputation: 3991
she must have some kind of issue or problem with money if she is making 6 figures & still needs to borrow money from you ( per first post)
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Old 09-10-2017, 04:12 PM
 
523 posts, read 285,534 times
Reputation: 1647
Let me see if I get this. You're buying a 75k asset, which will likely appreciate. Plus you want to be paid for the interest you lose by converting a cash asset into a real estate asset. In essence, you want to double dip and earn a double return. Most people would have a problem with this. 75K means 75K today not at some point in the future.
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Old 09-10-2017, 09:48 PM
 
14,082 posts, read 14,038,386 times
Reputation: 19085
Quote:
Originally Posted by NYC refugee View Post
Any CPAs on this forum, sharpen your pencils. Here's the situation: my sister and I inherited a house. It's worth about $150,000 and we agreed between us that I would purchase her half for $75k. However, when we got together with a lawyer to work it all out, she announced that she wanted to be paid in one lump sum. She absolutely couldn't take payments because then she would have to charge me interest and it would be so complicated blah blah blah. I was stunned because over the years I have lent her plenty of money now and then and the thought of charging my sister interest never crossed my mind.

So now I want to pay her with a lump sum MINUS the amount of interest I would have earned on the money if it was still in the bank. So it's a math problem: 75k, 20% (15k) down, 60k in a bank account earning .95% interest. If I took out $500 a month, every month, for 10 yrs, how much would be left when I made the last payment? That would be the earned interest amount I would lose paying a lump sum.

How do I figure this out?
Well what interest you possibly may "lose" in the future is really inconsequential. She is half owner of a property and her condition is she wants to be bought out in a lump sum at the time of the sale. Your "interest" loss isn't her problem. Oh and all that money you lent her interest free was your choice.
Whenever I did a partnership and the partner of I wanted out we either sold or one bought the other out in a lump sum. Wouldn't have it any other way. What if you get sued and lose all your assets. Now I lost the money you owe me.
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Old 09-10-2017, 11:53 PM
 
Location: rural DE
1,282 posts, read 343,560 times
Reputation: 2295
Quote:
Originally Posted by arrieros81 View Post
Why have you lent her money in the past then? Is her high income a recent thing? It still sounds like she has either a real or perceived lack of money. Or a sense that you have it better than she does therefore she deserves to get as much out of the house deal as she can get.
Yes, her marriage and income are more recent. She had some very bad times when she was younger and single. I'm not sure what sense she has.
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Old 09-11-2017, 12:13 AM
 
Location: rural DE
1,282 posts, read 343,560 times
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Before anyone else spends their time answering, I'm going to pay the lump sum. BUT I'm just under 60, my husband just over. I'm out of work and he's under-employed, so we can't get a loan. I spoke to my sister about it being a hardship to take this out of my savings at this time. I'm not looking to gain anything, I just shouldn't have posted this thread.
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Old 09-11-2017, 10:36 AM
 
2,738 posts, read 3,603,251 times
Reputation: 3171
Pay your sister the 75K you owe her. If you don't have the cash, sell the house.
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Old 09-11-2017, 12:03 PM
 
4,801 posts, read 5,410,162 times
Reputation: 6222
Quote:
I'm not looking to gain anything, I just shouldn't have posted this thread.
Don't think that.
I don't know whether you're new to City Data or not. But trust me, there are some well-meaning people on here -- with a whole lot of knowledge and/or expertise.

The little bit of questioning, request for clarification, etc you've received is par for the course -- and nothing compared to what some cases elicit. These comments have been milk-toast.

I can't say whether you need a thicker skin, or not. I'm just saying don't let the comments I've seen here make you think you shouldn't have posted. Everyone was trying to help. Think you've gotten some wise counsel, to be honest.
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Old 09-11-2017, 05:54 PM
 
7,981 posts, read 3,769,843 times
Reputation: 14234
Quote:
Originally Posted by SaucyAussie View Post
Pay your sister the 75K you owe her. If you don't have the cash, sell the house.
This

Your sister isn't a bank. It's not her problem that you want the house.
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Old 09-11-2017, 09:58 PM
 
14,082 posts, read 14,038,386 times
Reputation: 19085
Quote:
Originally Posted by NYC refugee View Post
Before anyone else spends their time answering, I'm going to pay the lump sum. BUT I'm just under 60, my husband just over. I'm out of work and he's under-employed, so we can't get a loan. I spoke to my sister about it being a hardship to take this out of my savings at this time. I'm not looking to gain anything, I just shouldn't have posted this thread.

So why are you spending 75,000 dollars if it's a hardship? That's crazy. Unless you got some passive investment income. Which it doesn't sound like you do.

Of course you're looking to gain something. Who are you trying to convince? You're looking at future value increase and possibly a rental for passive income or future place to live rent/mortgage free. Nothing wrong with that btw. You were also looking at having your sister carry a interest free loan for you when your initial buy out on payment offer . But to say you're not looking to gain anything is untrue.

Your choice to post. You just didn't like what the responses were.
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