Posted by michaela-FL on May 24, 2006 at 17:11:46:
Is the mother’s stay in the assisted living facility paid for by medicaid/medicair? I read an article a few months ago, that they are getting tougher in seizing property owned by people that had been taken care off by med. I believe it was for values above 60 or 70k. And even retroactively negate those sales. They’ve always had the right, but supposedly they’re going to enforce it more. If the 60 or 70k number is correct, then you may want to bring that up in your discussion to keep them thinking and keep the number low.
What about a short-term (12 months) owner-finance? That’s not that long and gives you time to either rehab, resell, refi whatever. That’s not that long and
might be faster than listing it at top $ with a realtor and having to sit on it.
Michaela.
Creative ideas welcomed on a potential deal - Posted by Owen
Posted by Owen on May 24, 2006 at 15:16:55:
A friend of my family is looking to sell her mother’s home (mother recently moved to assisted living facility). The seller had already contacted a local realtor who was going to list the property in “as-is” condition at $85K. After becoming aware of my interest, she agreed to give me a week to come up with a win-win scenario for her to sell the property to me before listing it with the realtor.
The seller seems to be flexible within reason, and indicated I could possibly buy the property for $70K. The property is owned free and clear by the mother, so she would have final say on any purchase agreement (which may limit my options). The house needs about $20K or so in updating/repairs (carpet, paint, kitchen and bath remodel, etc.) and would likely have an ARV of $120K or so.
I already own three properties- my principal residence, a rental unit, and a property that I am currently remodeling. Much of my cash and credit is tied up with my current remodel project, and I would likely not be able to afford to take on another remodeling project at the same time.
I am looking for creative ideas to be able to put this deal together, but I am fairly cash-poor at the moment. I had some initial conversations with the seller about different options, but I am looking for some different ideas that may not have crossed my mind. I got the impression that seller financing (at least 100% financing) would not be an option.
Many thanks in advance for your creative ideas.