Posted by leapfrog on May 14, 1999 at 08:17:29:
You need to convince him that a vendor take-back mortgage will save him money!!! If he gets cash, he’ll have to pay taxes on that huge amount. If he gives you a mortgage, he pays only on the amount he receives and he’ll have expenses. Now lots of old folks don’t want to bother----explain that he’ll be saving more for his estate!!! Barring that, you’ll have to find some else to buy the property for you and have them give you a mortgage. Maybe someone on this board? Good luck.
Help-creative minds are needed here - Posted by Candace Huber
Posted by Candace Huber on May 14, 1999 at 07:44:37:
If you remember I am new to this game. I have found a house in a great town. The town is growing like a weed and the house is in the perfect location. The owner owns it outright and has for some time. It is a family home he has been renting out till he got hurt painting it. He is 80 and is leary of working a deal. He wants cash and will only okay it if his real estate agents says okay. He feels like after all the taxes and fees are paid he wont see any money. Though I am sure he is financially well off. My problem is I am recently self-employed due to birth of my daughter…banks won’t even look at me. Any ideas on how I could make this deal work
Re: Help-creative minds are needed here - Posted by Bill Gatten
Posted by Bill Gatten on May 14, 1999 at 15:21:44:
Candace,
You might suggest that you would lease the property from him on a Tax-Lease basis via a Land Trust. I.e., suggest that the property be held in a netrual land trust in his name, with you as a co-beneficiary, for a couple years, until you are capable of buying it outright. In the meantime, you have 100% of the incidents and benefits of ownership, including tax write-off. He gets full rent (and then some if you’re willing to pay more… because you have the tax write-off), you handle all repairs, maintenance and upkeep: he has no such responsilbity. It’s a win-win for him and for you (you have 100% of the benefits of ownership clear up until such time as you either sell, or refiance the proeprty into you own name.
In the interim the property is shielded from virtully any possiblityof ligitagiton (i.e., his probate prceedings… at that age he probably doesn’t even buy green bananna anymore). Plus there is no risk of DOS violation… etc., etc…
If you’d like me to talk to his agent for you, just let me know, and we’ll get you that doggone house.
Bill