Advice Welcome
Hope I am posting in the right section.
I would like to learn of a creative way that might allow me to be able to own my childhood home using a creative real estate techniqe. My parents are older and my fathers health has been declining. The house was build in 1945 but needs some work. ie- New bathroom, basement has some minor leaks, some other updates.
They own the home free and clear. I would like to be able to construct some type of deal to help my parents out by providing a monthly income as well as owning this home myself. I currently live in Fl and the home is in PA. I have heard of someone mentioned gifting the home? I have no knowledge of this procedure.
I am mainly want to protect mothers interests and provide her with a regular monthly income. I am afraid that if she were to sell home outright traditonally and have a large lump sum lying around that "Others" in the family will take advantage of her good will if you know what I mean. I have spoken to my father and mother and she likes the idea of having of having a monthly income. I am just not sure how to figure this all out as I know this house needs some repairwork. I would not be residing there initally so It would have to be rented out. Please let me know if you have any thoughts,ideas, or comments It would be greatly appreciated.
-Tim
[ Edited by Twiltz on Date 11/20/2003 ][ Edited by Twiltz on Date 11/20/2003 ]
Gift deed to you to control the property, then L/O it or CFD to a new buyer.
Sounds like you want to construct some kind of lifetime tenancy agreement. I'm confused though, is the house vacant, or is your mother living there?
or live in it and pay your parents the monthly going rent value in that area...
Reverse mortgage. Talk to your local bank about it. Get to keep the house and recieve a monthly income.
boyd4444,
Sorry to confuse my parents still to live in the home currently. My father had a stroke a few months ago he is recouping quite well considering his age. He is obstinate about staying in the home hence the reason they still are there. My mother is basically staying there without a gameplan if anything more happens. I would like to personally own the home for the long term if I can. [ Edited by Twiltz on Date 11/20/2003 ]
Have them deed you the property. Or, in the Will, your the beneficary to the home. I don't think owning it is a problem, what are you going to do with it after you own it is a bigger question.
You could have them sell the house to you using owner financing, and then you could rent the house back to them. If they ever needed cash, they could just sell the owner financed note.
Quote:
On 2003-11-20 16:18, morehouse wrote:
Reverse mortgage. Talk to your local bank about it. Get to keep the house and recieve a monthly income.
If you're not interested in keeping the house as an investment, or for sentimental value, after your folks no longer live there, the reverse mortgage option can be excellent - and be sure to have them explain using certain life insurance vehicles as part of the deal.
Have them sell to you. Downpayment anything from $1.00 to whatever you/they agree to put down. You make payments to them based on the carryback . You can rent to them at a "fair" rent (Note:not necessarily Fair Market Rent). They have no taxes to pay (assuming less than $500K Gain). You now have a rental wth all the benefits thereto.
Reverse Mortgage is an excellent option for you to consider, but instead of taking low monthly payments, and since you want to build your mother some additional income. Get a lump some payment, and use the lump sum payment as down payment to a multi family or a couple of multifamilies. have management company run the multi family for your mother, make sure you interview several so that you get good terms, and that they handle all the building basic maintenance and leasing needs, and each month she will recieve cash flow from properties.
Thank you for all your replies. I appreciate all the good advice.
My mother in law is in a similar situation. I agree that Reverse Morgage is definitely the way to go.
I think it depends on whether the "others" are heirs or distant relatives. If you are the only heir than you might have your parents will you the property. If they decide to move out before they die then you could lease it from them and rent it out. If there are other heirs you need to work out something that is fair to them, maybe your parents will you the huse but leave them something else, or will the house to all of you and after your parents die you could buy out your brothers and sisters.
Alternatively your folks could sell the house and put the money into a trust that is created to support them. If you are worried that they might give the money to others maybe you could be trustee.