QUestion For The Pros
I have a the chance to buy a 100,000 dollar house for 30,000 with giving the owner lifetime use. could someone please give ideas on how to structure the deal as far as should I use improvements as a bargaining tool or supplemental income to the resident. All advice is welcome. thanks
It all depends on the age of the present time owner.
I give a (Life Estate) that entitles him to occupy the property for the duration of the lifetime. He should be in at least his late 60's and perhaps has a heart condition, a cancer somewhere. Or giving evidence of memory loss etc.
I then mortgage the house for about 50% of its value. I make the payments on the mortgage and the money is used to maintain and improve the house. I make my calculations based on his statistical life span. In some instances I have paid a monthly allowance.
I also sometimes do Conservatorships which are pretty much similar as I charge a fee but I keep the person in his rest home or under home care whatever.
I have increased the scale of their living standards by such actions and have been rewarded with the property. Be sure it is all worth while. I have gone upside down on a few, but they were friends.
Cheers Lucius
Lucius,
Thanks for the advice. the owner is in late 70's it is actually family. Let me make sure I am following you correctly. You take out a loan for 50% of value and make improvements or give supplement income. What if the owner wants something left into the estate. As many details and/or ways to break this down will be greatly appreciated. I would like to make this deal to ensure that everyone is kept happy and I make money