My Husband and His Mom Own a House Together 

So the mom made a 12-year investment and the stepdaughter only wants to pay her the initial investment. It should be sold and the profits split 50/50 between the husband and mom

I don't think the son gets 100% of the equity in the house. 90/10 split on the initial investment and 12 years later the son still hasn't paid her back for the upfront costs. That doesn't sound like a loan. That sounds like she owns at least half the house.

I'm thinking this is not the whole story. Mom was expecting an additional stream of income, she presumably will want her share of the gain on this property at the sell.

Well, why does he (the son) make all the profit? Why do only the son and his wife benefit from the investment they (Mom and son) made in 2008?

This should be between the mother and son. The wife has nothing to do with it. Sounds fishy. The husband better pay attention.

Dave got this one wrong!! did he miss the part where it's supposed to be an investment property with the mom getting add itional income off of the property? If they sell it she won't get that income.

The party that has 0% interest in the property is the one that wants to sell and get the profit... she is just calling to get validation on her rationale. “Dave Ramsey agrees with me!”

I disagree with their advise on this one... Mom should get paid the 75k remaining left on her initial investment, once they agreed to sell the apartment it’s 50/50 of what ever is left between the mom and the son. Simple as that.

It’s funny how the wife has more opinion when she initially had zero invested on the rental property and the husband only put down 10K.. OHHH GREED. Money does really expose the real character of a person. LOL!!!

This wife is going to escalate this to a point where mom sues the son. And she'll win. Why doesn't Dave get that the mom is due interest? She's the co-owner. Sometimes I wish Dave would actually listen to the caller instead of trying to be a character. He's leading this woman down the wrong path.

If she s okay just being '' paid back'' that's very generous of her...

Wth type of advice was that? The son and wife are rootless and ungrateful 🤦🏻‍♂️

Problem with this advice is that it sounds like this condo was purchased as an investment property and not as a loan to him. If she is still thinking that way then they should sell it, get her back her $90k investment (sounds like they both put in another 10k into it so that kinda breaks even) and then split the equity. If Mom wants them to have it then great but if not, I don't see why the son gets to keep all of the profit.

50/50 no buyout it’s considered investment, plus her $90k. If it wasn’t for his mom they wouldn’t have that property. The wife shouldn’t put her 2cents in. Or they wouldn’t even have a place to live. I can’t believe this.

I just rewatched this. From the beginning she starts with: "I'm calling to get some advice, I have an idea of what I should do...". Just to be clear honey, YOU don't own anything.

The type of daughter in law I hope I will never have

Dave, you need to treat this as a business deal. Imagine that 12 years ago you went into business with a partner on a rental property. You put in $90k up front and your clearly junior partner puts in only $10k. You later put in even more. Presumably the point of buying a rental property is to make money from renting it out. Both parties acknowledge that this was the intent of the agreement. We know the condo was habitable, because your partner takes sole possession of the condo, moves in and has been living there for 12 yrs!!! Without completing the renovation. We don’t know who is paying the mortgage or the condo dues or the utilities but you have received 0% of the fair rental value for those 12 years. I checked. Average fair rental value for all Oakland for that period is around $2300/mo so there should have been $331,200 in missed rent payments, 90% of which should be yours less dues and other expenses that are not mortgage. (Maybe $25k of payments were made to you over the 12 years by your junior partner that might have been rent - $25k /12 years /12 months means $174/mo rent for a half million dollar condo. That is less than 10% of real value.) Somewhere in there your partner marries and the new spouse who is not on the deed decides the deal is off and only wants to pay you back the original investment (less the 25k) with no interest for 12 years and keep all the profit on the deal. Your rate of return on a 12 year investment is exactly 0 - less if you did put more money in over the 12 years. Are you happy with that deal? Would you do it with me? I promise to thank you after the 12 years of free rent are up and to keep 100% of any profit as your gift to me. I’ll even send flowers. Can we move the condo from Oakland to Jackson’s Hole, WY? I like to flyfish. Dave, please admit you blew this one Big Time.

It's funny I didn't even start the video..... His wife is jealous and can't stand the idea of not being in control.

Wouldn't a 50% partner get 50% of profit when they sell?

Uncle Dave is a mile off in this case.

The mom is trying to protect her son. Wife wants out of the condo, buys the house, that way they take the property in comnunity property, wait 2 years file papers ie irreconcilable differences and BAM! She owns a home she didnt even have to pay for.

what a huge blessing the mother did for her son to help him get started on wealth building

Why wouldn't they split the proceeds by the ratio of what they put into the property? Mom was investing for rental income but could settle for proceeds from sale.

I do believe Mommy in law is going to want 50% of the equity from this investment sale. $250,000. And I’m sure nothing was written down. 👀

Mom put in 100K, son 10K. Each should have contributed 55K down payment. Sell condo for 500K. Mum gets 250K Plus 45K ( less 25K that has been given, less half of condo remodelling cost). Therefore Mum gets 270K and pays half of reno cost. Son and meddlesome DIL should get 230K and pay half of reno cost.

Why is she calling and not her husband?

The wife wants all the equity and to give her Mother in-law 0% return for 12 years of investment. See how greedy that sounds? She should be ashamed of herself. I would never diss someone who put me on like that.

There should be a simple rule for buying a house with someone: if you don’t plan on spending the rest of your life with that person, don’t buy a house with them. Had a coworker who was working minimum wage to go in on a house with her two sisters. Had to tell her how bad of an idea that was on so many fronts. She was using a credit card as an emergency tool as well. No getting through to her. She and her sisters probably got a 30 yr mortgage on 5% down or something like that.

These women and these houses it never ends, so much energy going into to mere shelter, it amazes me. She just wants that equity when she files on him like 50% of them do.

The husband total return of investment should be 100,000 (20%) after selling the condo for 500,000. Otherwise I see it as they are defrauding the old lady.

Mom should get 90% of profit. Kids should get 10%

Something doesn't smell right here....why is the wife involved or making the call? She's not involved, she paid nothing into this. First she said co-own, then she said co-sign, there's a huge difference there. Co-sign just makes you liable for the loan, you don't own anything, but in this case she is a 50% owner of the house. Dave's math is way off here, the mother is not at fault, this sounds like wife's idea she's trying to spring on her husband. Mom is owed A LOT more than 75k if the house has appreciated that much. Wife has seen the value of the house now and is just after the money. You can just hear it in her voice and the way she tries to paint it "they have a rocky relationship history" etc. at the end. She's talking out of her a$$ trying to seem like the good person here. Very suspect.

My dad owned 3 apartment buildings and lived in one of them. What's the issue? Keep the condo and continue to make money.

This was a horrible advice! Mom essentially bought the condo and still (12 years!) have not been paid back. She carried and still carries the majority of this investment risk. She is entitled to the profits! She has the same right to buy it from them for 10 grand they owe her, not 425.000. Sell it, split in half and pay each other whaťs owed. Start clean.

why is the wife with 0 money put in is concern? let the son and mom talk it out...wife should be out of it

So, the wife wants to be a free rider with 0 zero investment or any risk. Buying her out of her house for peanuts.

This deal is between mom and her son. The daughter-in-law is all in the mix without having contributed any funds. Mom put up 90 percent of the down payment in the first place. So who is really being selfish here? Upon selling, the son and his wife should find themselves fortunate to walk away with half of the equity, $250K, if they want to be fair about it. He only put up 10 percent. If it wasn't for mom, they would have nothing. SMH.

"Meekness is not weakness it's power under control" - Oh my god that's good.

This deal got really messy really quickly. That’s what would scare me from going in on a deal with someone I’m not married to

Troublemaker taking with both fists. You can hear the animosity and resentment in her voice. This is one for the courts, who will hear ALL sides.

I'll put in 100k, you put in only 10k and keep all equity upon sell. Just pay me my 100k down-payment. ~ The wife's weird logic

Dave you’re wrong! The mom saw this as an investment property for additional income, not a loan to her son. And the wife sounds shady!!!!!

The caller is in LaLa land. Nobody in the world will walk away from an investment with what they came in with. Her mother in law is the owner, they were paying rent.

The mom can easily go for 1/2 the proceeds considering she put in 90k and he only put 10k. His getting 400k and her having put in the bulk of the down-payment doesnt seem fair...

Moms tell sons what they need to do because they want to manipulate them. Some sons just don’t grow up also. This is why some sons get married with woman that tell them what to do just like mommy. Step up Man.

Mathematically this doesn't make sense. Mom puts in $90k but gets $75k in return when the condo appreciates astronomically? Unless son pays all renovations and they have some written agreement that he gets to keep all profit, this isn't looking right. 😕

That’s why asian parents say know who you are marrying with really good.

Why is she in on it? Her husband made a deal with his mom and now that stepdaughter comes along he wants to change his mind on it. He needs to buy his mom out correctly and stop listening to his wife. We need to hear the other side to this

As parents we want to help our kids get on to the property ladder, don't buy a house with your kid. Gift the kid the money and back out. But in this situation depending on her financial standing, give her, her equity in the house and go build your life.

Split the profit! When selling, both will need to sign paperwork, and if she doesn’t get 1/2 she may not sign. Why does he get ALL the profit? She wanted to make money on the investment. Dave goofed up on this one.

Does this woman understand that they only see 10% of the proceeds of the sale? That is all he paid in. You can tell she thinks she will cash in after her "redecorating". I bet they do not have 90% of the sale price to buy her out. They cannot put it up for sale without her permission. The wife should back away from this and not get involved.

This call is full of "assuming" and "essentially", which means her husband doesn't want to include her in actual numbers. Pin that man down for answers or just keep making him sandwiches.

He's 100% right about this being a problem for her if she gets involved with the mom. A similar situation happened with my dad and his sister where her husband wanted my dad to sell his portion of my mom's home. My dad no longer talks to he sister, I would not consider them my cousins anymore either 😂

If it's not written in contract then the ownership is 50/50. If they sell, the remainder of the debt is payed first then the equity is split in half.

Strange thinking. She is on the deed. She put down 100. He wants to make a 400k profits. Now she is a control freak. In court she is entitled to 1/2 of those profits?

Can one person (the son) just decide to sell a house without the second person who owns it (the mother) agreeing to that?? Also I don't see how the son gets the full 400K appreciation value and the mom only gets her initial investment back - when she clearly had stated she was going to use this an an investment property (with eventual rent money bringing her income). I think she is legally entitled to a lot more than that - like her initial investment x whatever percent appreciation. Or maybe a 50/50 split on the 400K profit?

People are assuming they only paid 100k for the property. If mom only put in the first 90k and the son and wife paid 200k over 10 years things change

Godspeed. This advice though 😂 Let's see, I put up 90% of an investment that quintuples and instead of a 450k payday my investment magically turns into a 0% loan.

this is the thing i dont agree with you Dave, Mom deserves the money for the investment over the years. The wife has nothing to do with it.

Sorry to say but it’s more of your mother in law’s house and not your husband’s so if there’s anybody who should be calling here it’s the mother in law. It should be the other way around, mother in law should just buy you out for 10k, how would you like that? Good thing it’s on her name so when they decide to sell check would be under her name too

Mom is planning on getting 1/2 of the equity

Before any remodel takes place, son should buy mom out.

How is it TITLED? Her co-signing doesn't mean she's the titled co-owner. If it is titled in mother and son's names, she's HALF OWNER. The split may not be what this caller thinks.

Uncle Dave, why do you feel that son and his wife deserves all the profits from the house? Between mom and son had an agreement to lease the house and split the rent money, meaning mom had an intention for this house to be her investment, which in turn means she deserves a port of the profit made from the house sales. I think most would agree with this logic. So, why tell daughter in law to get all the profits from the house sales and give mom only the initial investment? I love your shows by the way, so don't get me wrong, just curious.

I don’t think the mom thought she would make nothing on this apartment

ok so mom "invested" $90k and the son "invested" $10k, mom was also thinking she would use the condo for a stream of income once it was paid off but mom also wants to be paid back the initial $90k investment. They also never mentioned the purchase price of the condo and we don't know if mom was responsible for the mortgage payments as well or if she just helped with the down payment.

Good show. Question: is it a good idea to sell a home and use that proceed as down payments towards two homes?

They need to pay the mom 50 percent of what they sell it for. She paid 90/10. Also her name's on the deed. Legally she's allowed to get half

This KAREN needs to stop trying to twist things for her benefit and Dave being negative towards the husband is irresponsible bcuz he doesn't know the other side of the story

If he's selling for $500,000, Mom should get more than the original $90,000. She went into this deal as an investment; Now her son gets to reap ALL the benefits of the investment, when she put down almost ALL of the cash initially? That doesn't sound fair at ALL! Something's off here.

The problem is you're going to pay her back and then when you decide to sell she'll want half

Like D Ramsey said with a good return of investment in the first year the mom could earned 6,300 dollars with 7% return to total 96,300 dollars, second year 6% of return could have another 5,778 dollars for the total of 102,078 and more every year for the other 8 years left The son and his wife are ripping off the poor lady 🤦🏽‍♂️

May have missed the point that mom and son "intended to rent the property and BOTH have a stream of income". So mom may be owed more than simply a return of her invested/loaned amounts. We also don't know whether son was married at the time he and mom entered into the deal.

Omg Daughter in law name is not on the deed. She had no say. Dave wants the kids to have free rent for 2-3 years and essentially borrow the mothers money for free without interest. IMO that is wrong it doesn’t sound like the intent was to give her son an interest free loan. Mother put in 100k and got 24 k in rent in 10yrs. Good way to rip her off.

Lol she is supposed to get 450k not 100k since she put in 90% of the money they are really ripping the mom off.

It doesnt make sense. The son paid his mum back 25k and she took it, suggesting to me it is a loan and not an investment. She obviously loaned him the money but somewhere along the way she changed her mind.

Husband and wife are changing the terms and intentions of purchasing this house. Mom wants income Son and Wife wants it all for themselves. Mom needs to be compensated in some way.

Gold digger needs to stop. She should stay out of this and it would give her husband a small steady stream later.(which sounds like it wont be enough). So if we use her thinking in her. She can give us 90g and put down 10 the. Pay $2000 a year back towards her larger down payment. So 12 years later we are at 1/3 of the amount. Then let’s sell the property and pay her back the other 2/3 giving us the about 300g profit. Now let’s get that 100g from her for our next real estate investment.

Why should the husband n wife get all the profit. Bogus. And why does Ramsey think she doesn’t deserve some of the profit?

I often wonder how many friends/family members have found a call in about them, then get really mad at the caller.... It’s not like nobody watches or listens to this show, it’s huge. How’d you like to be a fly on the wall during those confrontations? LOL

What’s your household income?

The mother gets back all of her investment PLUS half the profit.

I ain't saying she's a gold digger...

And the Mom should be offered half of the profit (minus the remodeling costs). If she didn't really need the money, she most likely will decline. If she needs the money, she earned it!

So the mom doesn’t see any return on a $90,000 investment made ten years ago? They think the full $400,000 profit is just theirs and Dave supports this? They are are screwing over his own mom? I guess they deserve each other.

That’s a one complicated situation right there

Does Davies mother do that to Dave...mothers just love and protect and have son best at heart she was first remember that cared for son...she should be honored! !!!

Here is a mom with a great son. Tell your husband to be at his kindest and most loving manner when talking with Mom. That is the most important! Hurt his mom's feelings because of money matters is dumbest thing a son can do. She gave his life and a future lump sum of money!

I would not rent that home out in Cali. Eviction laws are halted, so you may get a squatter. Renovate and sell it. Mom can't handle tenant law, including legal fees, and neither can the couple.

she invested in you give her 163k 5% comound as payoff, if you don't you are messing up badly 5 percent compound would be great offer to stop her from feeling the loss

Hopefully it works out because the check after sale of the house will have the Mom and Sons name on it.

This is a common marriage scam in California. She will divorce him and take half or more of the equity from property he owned before the marriage.

She acts like paying mortgage is her adding money to the house. If it’s bought as a rental property ideally the tenant rent would pay for mortgage and neither party would put in more money. Since he decided to live there he is the tenant

It seems to me that the mom should get half the profits.

You owe mom $250k. She own half the house.

She is going to divorce the son in a few years (because of his relationship with his mom) and get paid out half of the equity in the NEW home they purchase. BUT the son is not willing to pay HALF to his mother. I Hate to sound pessimistic but I have seen similar situations ESPECIALLY in California.

The husband who has the agreement isn’t the caller. He’s not concerned.

Why is the wife involved? Let the husband deal with it.

I think the mom probably wants some of that equity from selling the house. They may have to split it to make her happy. Or wait until they completely pay her off, then sell it.

All of the above.