When You Sell Your Minneapolis Duplex To A Friend, Is It A Blessing Or A Curse?

Over the last several months I’ve visited with several Minneapolis and St Paul duplex owners exploring the idea of selling their property to a friend or adult child as a means of helping create long-term wealth.

The owners came to me hoping to get an idea of the fair market value of their property, which would, in turn, help them calculate their financial futures as well.

I am always happy to help. We went over value. And of course, we also talked about the potential tax ramifications of selling.

But then we did something I’ve usually done just with buyers. We did a spreadsheet that determined whether or not the owner’s duplex was, in fact, a good investment for the individual they were trying to help.

On more than one occasion, it wasn’t. In those cases, the buyer didn’t have a big enough down payment, or the owners weren’t willing to discount the property to the point it jeopardized their own financial health.

While that was deeply disappointing, in the end, it also offered clarity. Most importantly, having wonderful, generous intentions to help a loved one end up doing exactly the opposite, may cause the relationship itself to fracture. None of us want that.

If you’re thinking of doing the same, call me.  There is no charge for us to go through the math. That way, you can be sure what you are offering your friend or loved one truly is a blessing.