Profit Split Question
A friend of mine has a dilemma......he and a buddy bought a house that they were planning on rehabbing and then sell. No problem. My friend got the loan n his name (since he has great credit) and also funded the repair costs and the other guy would handle the entire rehab process (setup and manage subs, etc) and they would split the profit 50/50. Here is the problem. My friend got a owner occupied loan since he does not own his own home and the title is in his name alone. When they sell the home, how do they divy up the profits as well as the tax burden? Can he do a quit claim to add the the friend to the title ( so they can equally share the profits and tax responsibility? If so, should they do this before they sell the home? Will the fact that it is an owner occupied loan have any affect?
Not my area of expertise...thanks in advance.
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