I need to talk to someone about a construction loan. Someone who can walk me through the best way to go about building a new property without unleashing a barrage of property taxes and minimizing my out of pocket.

Here's the situation:
We have a Texoma lakehouse & it was purchased by my Wife's Grandfather in the 50's. We are going to inherit this property at some point but now it is in the Family trust in my Father-in-Law's name. If we transferred the property now, I am afraid the new valuation of the property would result in higher property taxes - He pays ~$500 annually now on a property that's valued at $200 or so. Something about keeping it in the trust and original HOA allows for the very low taxes.

Our plan is to tear down the lakehouse and build brand new. I have the demolition, planner and builder lined up but not sure how to best go about funding this.

My FIL is willing to keep everything in the trust and just let the inheritance transfer when he passes but what does that do for my quest for a construction loan if its not in our name, only promised through a will/trust?

Alternatively, my house on Lake Vilbig is almost paid off. Its worth $325k and I owe $40k so I could sell and use the $$ to fund the new house but that leaves us stranded for 6 months while its built.... This is my first rodeo with this type of thing and its a little overwhelming. Any advice you can offer based on my situation would be welcome.

I would consult the Lawyer who is managing the trust.

I plan to but wanted some feedback from this well rounded group so I am armed with the questions I need to iron out.

Let me know when you want to sell your current home! I want to live there.

Looked at house there few years ago with Fatty... the layout of the house was just to odd. I could not get over it.

Yeh, selling won't be a prob. Just mentioning it to the neighbors and I get calls from cousins, friends etc... PM me Dan and I'll give you my number. I work from home so if you wanted to see it, I'm always here. Its not "showing off" ready but when you see the backyard, nothing else matters

I'll prob put up a GoPro video of the house, taking a ride on the pontoon, showing the outdoor kitchen etc... so people can get an idea. Just need to pick up my messes first.

You could take a home equity loan out on your existing home, 80% of the value, that would give you some money to get started on your new home, where about are you on Texoma ?

Does anyone actually live in the house currently?

If not, maybe your Father in Law, your Wife and you could apply for a loan together (your Wife and you as Co-Borrowers) and have it vested as 'with rights of joint survivor ship'. Get the house built then the three of you get a conventional loan.

Sooner or later you are going to have to pay some higher taxes, no way around it.

Cartwright, OK - Oak Hills estates is the subdivision - View from the deck.

This would be my move if it will give you enough cash to build the new one.

Once the house is demolished, you will only pay taxes on the value of the land itself. When the new house is completed and you get your Cert of Occupancy, the property will be reappraised for the next taxing year. That's how it worked when I built my last home in Texas.

I assume you both are listed on the trust?

were it me I would take out an equity loan on existing home for half its value, escrow that toward new build and approach bank for balance in a const. loan or even a personal loan if possible.

when new home is about 80% have it appraised and then go get the conventional loan and pay off equity loan on other home so it is again almost free and clear (don't want the bank in on the eventual sale).

as for taxes, not sure about cartwright but when I had my house in guthrie the taxes were minimal compared to Tx. at some point you will have to pony up and pay so might as well get ready for it.

Nice view.

In my humble opinion, I think you should be more concerned about protecting your $300,000 investment rather than postponing a $5,000 tax bill that will eventually hit you at one time or another.

In short, I would not improve the property until it's transferred into your name. I would not assume a seamless transfer of ownership at a later date (especially if there are other family members involved).

Just my two cents. Good luck to you either way.

All I know is Grayson County has one of the highest tax rates in the state and I would do all I could to keep it is the trust that has a low tax rate.

Best advice yet

I don’t understand why people want to further complicate what potentially might be an already complicated situation