Found a potential deal and I do not know the specifics yet, but a question of mine is coming up:
Owner is elderly and son has power of attorney. of course, within some time she will need (if it comes to that, as she is over 90) assisted care. Medicare will of course be a concern of theirs, i.e. if she gets a bunch of cash from the sale, she will or could be ineligible for Medicare. If I do something on the creative side, L/O or Owner fin or Land Trust, will my position as a principal be jeopordized if long-term Medicare is required?
has anyone come across this sort of scenario? how best to avoid probate and maximize use of property(from the sellers perspective) and not get tangeled up with IRS and Medicare (seller’s and my perspective)?? I’m all about Wins-Wins here… :beer
One possibility would be to buy the property from the elderly seller in exchange for a life annuity. This is a contract that gives you title for the balance of the seller’s life in exchange for a monthly payment, which defines a life annuity.
Not everyone presented with this will accept but when they do, it’s a grand deal for all parties. If the property were to be sold for cash, what would the seller do with the funds? If they intend to park the money and use the interest only, then this could be an option of value.
I hope this helps.
Ask your seller what they feel is best for them to do. Let them figure that part out. be careful not to give out advice to sellers or act as a consultant. Ask them questions and structure your offer according to what is best for them (sounds like you are doing this)
You may can construct an awesome seller financed deal… and either keep it, flip it to another investor, or flip it to an end user buyer.
I also like the life annuity idea, very creative