How do I "Flip" a friend gently....
I'm trying to structure a Flip where the "Ultimate Buyer" happens to be an acquaintance. The problem is our group would prefer not to let UB know how much we are netting on the deal. Due to recording, excise tax, and etc, taking title to the property and reselling would make this information available. (Not to mention open potential environmental issues) Also, doing what we normally prefer, an assignment/novation, which results in our profit being paid from Buyer proceeds at closing and present on the settlement statement, is equally problematic.
I have considered various options, but I am concerned with legal implications and tax issues to seller. Our group has spoken with a couple of advisors, but none have come up with a solution which leaves seller with the same tax basis and UB unaware of our profits. Any and all possible solutions appreciated!
Thanks
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