Must See - Newbie First Deal! :) - Posted by Crash(OK)


#1

Posted by Crash(OK) on October 17, 1998 at 10:05:24:

Thanks for the comments friends. I did have the contract drawn up by a mutual friend who is an attorney, and her son was the one that gave the go ahead for the deal. She really enjoys the setup - no stress, no worry, and her income was increase by more than 30% annually (very helpful for those on fixed incomes).

Thanks again!


#2

Must See - Newbie First Deal! :slight_smile: - Posted by Crash(OK)

Posted by Crash(OK) on October 16, 1998 at 21:36:05:

I have been reading the articles and posts, thanks for all the help everyone! Just wanted to share my first deal with you.

I bought a home from a 94 yr old lady (who still lives in it and takes care of herself) for $28,600 (tax valuation for the property). Market Value $60,000. Terms - $200 a month at 0% interest, first month due at signing, I pay taxes, insurance, and maintenance (est. $600 annually).

When she passes on, or decides to leave the home, the balance will be due to her or her estate. (Is this kind of a psuedo reverse mortgage?)I know I’m not making any money on it now, and as long as she doesn’t live to be 130, I think I made a pretty good deal.

Thanks for the creative ideas CREOnline!


#3

Re: Must See - Newbie First Deal! :slight_smile: - Posted by phil fernandez

Posted by phil fernandez on October 17, 1998 at 07:43:36:

Crash,

I did one of these deals years ago with an elderly lady. Actually the numbers on your deal were very similar to mine. I assume you gave her a lifetime estate.

My woman was in the house until she was 104 years old. Your mileage may vary. IT’s my thinking with no stress from worrying about her house,it
contributed to her longevity.


#4

Re: Must See - Newbie First Deal! :slight_smile: - Posted by JohnG

Posted by JohnG on October 17, 1998 at 08:56:44:

I would encourage you to have one of her family members involved in this deal so that down the road you are not accused of taking advantage of a “sweet little ole lady”.
I am not criticizing your deal at all. I think that in this business we have to identify what the vendor wants and you may have done that superbly. She gets the best of both worlds - a monthly income and she gets to stay in her home. My point is that someone can contest this deal and say she was coerced or whatever and if you have a family member onside and a witness to the deal you can prevent any such occurence down the road.


#5

Re: Must See - Newbie First Deal! :slight_smile: - Posted by phil fernandez

Posted by phil fernandez on October 17, 1998 at 09:45:58:

In my case I insisted that the older lady have her attorney review the deal. It’s definitely the way to go so family members don’t come back at you in the future.