Have any of you taken a carryback loan or mortgage from your parents or any relative for that matter? If so, would you generally recommend it? What have your experiences been?
I posted another thread about how my parents originally wanted to gift us their remaining ownership of our TIC condo, and the overwhelming response was that it's a bad idea due to the anticipated strings attached. So in light of this, my parents have offered carrying back a loan for us on their 75% ownership of the condo. We actually have a smaller carryback loan from them on our 25% portion and we are currently about $30k away from paying them off. Their 75% ownership is about $392k. If we really wanted to, we could probably buy them out in cash, but we'd be left with barely any reserves in our taxable accounts, which are currently heavily invested in S&P500 index funds. Otherwise, we could put a smaller downpayment up front and increase our monthly payments. I guess this is where interest rate and what they would want for a downpayment would all factor in in terms of negotiations, etc.
Also, payments would be made to their trust, so even when they've passed on, we would still continue making payments into the trust until it's paid off. Everything in their trust is scheduled to be divided 3 ways between my two older brothers and I.
Thoughts?