bearishgurl – how to get your coveted fleetridge home…

[UCGal]

I person I work with had a unique way of purchasing his house. It took tremendous patience, but paid off in the long run.

Like you, he’d identified a specific area down to a few blocks with some selected homes. He knew these homes would maintain their value in the long run. It is an older neighborhood with well maintained homes. Many of the owners had lived there more than 40-50 years. The people living in those homes were older… the homes were paid off years ago.

He approached several of them, with his realtor, with an offer to buy the home at current market rate – and let them continue to live in the home till they no longer needed the home. They would get the cash up front – and pay a nominal rent. I think he had a clause of 10 years max.

One of the homeowners took the deal. He moved in several years (4 or 5) after he purchased the home. It was a win-win… the home owner got the cash when she could use it – to maintain the house, cover medical expenses, gift to her kids. Kind of like a reverse mortgage. He got a good deal because he locked in the price early – before the market went up.

It took some discipline and patience – but he got the house he wanted for a price he thought was fair… but he had to defer gratification.

Since you know the exact area you’re interested in… if you can afford to buy now, live in it later, it might be a way to acquire your dream home.

[bearishgurl]

UCGal, thanks for your out-of-the-box suggestions. I did not actually see this thread until early evening yesterday and could not respond until now.

Yes, patience is my middle name. My timeline for selling my personal residence is 4+ yrs. from now. Essentially what your co-worker did here was give the (sr. citizen) owner a “life estate” in their own (former) residence with a 10-year cap on occupancy.

I could see where this could be attractive to a sr. citizen owner because the up-front and sometimes separate “draw-down” fees on a reverse mortgage eat up too much of the equity. I could imagine that these fees would be even higher now, because the RM lender may be worried about future value and saleablility.

You mentioned that your co-worker charged a “nominal rent.” I wouldn’t mind charging a bit less than market since there would be no move-outs but “nominal” would not even cover half the carrying costs and landscaping svc. I would also be concerned that my new “greatest-generation” tenant has not paid rent/mtg. in decades and also had Prop. 13 tax treatment so is not USED TO PAYING THESE THNGS. Wouldn’t they tend to feel that even a reasonable rent I would be asking for was exorbitant?? Due to the advanced age of the tenant, I would probably feel more comfortable if their rent was paid to me automatically every month from their bank or trust acct. I also don’t see them maintaining the property as tenants don’t normally do this.

Do you know the extent of maintenance that was performed by the seller/tenant in your co-worker’s property performed? How old were they when they finally vacated and why did they vacate early??

I’m also skeptical that there would be any heavy or cosmetic fixers available anymore whose backyards are facing dtn. SD with an unobstructed, sit-down view within the house. I would have figured they have all been bought up, rehabbed and flipped by now or their “rehabbers” are still enjoying them.

If I try to do this in this day and age and cannot drive the price down far enough, I would probably have to get a passive equity-partner or a (temporary or for the life of the contract) “silent second” to make a deal like this. I would not want to buy a “keeper” property as tenants-in-common with another party on title for a variety of reasons.

Thanks again for the interesting idea, UCGal! I think it might be doable if the mechanics of the “life-estate rental-contract” were properly spelled out.

[bearishgurl]

UCGal, thanks for your out-of-the-box suggestions. I did not actually see this thread until early evening yesterday and could not respond until now.

Yes, patience is my middle name. My timeline for selling my personal residence is 4+ yrs. from now. Essentially what your co-worker did here was give the (sr. citizen) owner a “life estate” in their own (former) residence with a 10-year cap on occupancy.

I could see where this could be attractive to a sr. citizen owner because the up-front and sometimes separate “draw-down” fees on a reverse mortgage eat up too much of the equity. I could imagine that these fees would be even higher now, because the RM lender may be worried about future value and saleablility.

You mentioned that your co-worker charged a “nominal rent.” I wouldn’t mind charging a bit less than market since there would be no move-outs but “nominal” would not even cover half the carrying costs and landscaping svc. I would also be concerned that my new “greatest-generation” tenant has not paid rent/mtg. in decades and also had Prop. 13 tax treatment so is not USED TO PAYING THESE THNGS. Wouldn’t they tend to feel that even a reasonable rent I would be asking for was exorbitant?? Due to the advanced age of the tenant, I would probably feel more comfortable if their rent was paid to me automatically every month from their bank or trust acct. I also don’t see them maintaining the property as tenants don’t normally do this.

Do you know the extent of maintenance that was performed by the seller/tenant in your co-worker’s property performed? How old were they when they finally vacated and why did they vacate early??

I’m also skeptical that there would be any heavy or cosmetic fixers available anymore whose backyards are facing dtn. SD with an unobstructed, sit-down view within the house. I would have figured they have all been bought up, rehabbed and flipped by now or their “rehabbers” are still enjoying them.

If I try to do this in this day and age and cannot drive the price down far enough, I would probably have to get a passive equity-partner or a (temporary or for the life of the contract) “silent second” to make a deal like this. I would not want to buy a “keeper” property as tenants-in-common with another party on title for a variety of reasons.

Thanks again for the interesting idea, UCGal! I think it might be doable if the mechanics of the “life-estate rental-contract” were properly spelled out.

[bearishgurl]

UCGal, thanks for your out-of-the-box suggestions. I did not actually see this thread until early evening yesterday and could not respond until now.

Yes, patience is my middle name. My timeline for selling my personal residence is 4+ yrs. from now. Essentially what your co-worker did here was give the (sr. citizen) owner a “life estate” in their own (former) residence with a 10-year cap on occupancy.

I could see where this could be attractive to a sr. citizen owner because the up-front and sometimes separate “draw-down” fees on a reverse mortgage eat up too much of the equity. I could imagine that these fees would be even higher now, because the RM lender may be worried about future value and saleablility.

You mentioned that your co-worker charged a “nominal rent.” I wouldn’t mind charging a bit less than market since there would be no move-outs but “nominal” would not even cover half the carrying costs and landscaping svc. I would also be concerned that my new “greatest-generation” tenant has not paid rent/mtg. in decades and also had Prop. 13 tax treatment so is not USED TO PAYING THESE THNGS. Wouldn’t they tend to feel that even a reasonable rent I would be asking for was exorbitant?? Due to the advanced age of the tenant, I would probably feel more comfortable if their rent was paid to me automatically every month from their bank or trust acct. I also don’t see them maintaining the property as tenants don’t normally do this.

Do you know the extent of maintenance that was performed by the seller/tenant in your co-worker’s property performed? How old were they when they finally vacated and why did they vacate early??

I’m also skeptical that there would be any heavy or cosmetic fixers available anymore whose backyards are facing dtn. SD with an unobstructed, sit-down view within the house. I would have figured they have all been bought up, rehabbed and flipped by now or their “rehabbers” are still enjoying them.

If I try to do this in this day and age and cannot drive the price down far enough, I would probably have to get a passive equity-partner or a (temporary or for the life of the contract) “silent second” to make a deal like this. I would not want to buy a “keeper” property as tenants-in-common with another party on title for a variety of reasons.

Thanks again for the interesting idea, UCGal! I think it might be doable if the mechanics of the “life-estate rental-contract” were properly spelled out.

[bearishgurl]

UCGal, thanks for your out-of-the-box suggestions. I did not actually see this thread until early evening yesterday and could not respond until now.

Yes, patience is my middle name. My timeline for selling my personal residence is 4+ yrs. from now. Essentially what your co-worker did here was give the (sr. citizen) owner a “life estate” in their own (former) residence with a 10-year cap on occupancy.

I could see where this could be attractive to a sr. citizen owner because the up-front and sometimes separate “draw-down” fees on a reverse mortgage eat up too much of the equity. I could imagine that these fees would be even higher now, because the RM lender may be worried about future value and saleablility.

You mentioned that your co-worker charged a “nominal rent.” I wouldn’t mind charging a bit less than market since there would be no move-outs but “nominal” would not even cover half the carrying costs and landscaping svc. I would also be concerned that my new “greatest-generation” tenant has not paid rent/mtg. in decades and also had Prop. 13 tax treatment so is not USED TO PAYING THESE THNGS. Wouldn’t they tend to feel that even a reasonable rent I would be asking for was exorbitant?? Due to the advanced age of the tenant, I would probably feel more comfortable if their rent was paid to me automatically every month from their bank or trust acct. I also don’t see them maintaining the property as tenants don’t normally do this.

Do you know the extent of maintenance that was performed by the seller/tenant in your co-worker’s property performed? How old were they when they finally vacated and why did they vacate early??

I’m also skeptical that there would be any heavy or cosmetic fixers available anymore whose backyards are facing dtn. SD with an unobstructed, sit-down view within the house. I would have figured they have all been bought up, rehabbed and flipped by now or their “rehabbers” are still enjoying them.

If I try to do this in this day and age and cannot drive the price down far enough, I would probably have to get a passive equity-partner or a (temporary or for the life of the contract) “silent second” to make a deal like this. I would not want to buy a “keeper” property as tenants-in-common with another party on title for a variety of reasons.

Thanks again for the interesting idea, UCGal! I think it might be doable if the mechanics of the “life-estate rental-contract” were properly spelled out.

[bearishgurl]

UCGal, thanks for your out-of-the-box suggestions. I did not actually see this thread until early evening yesterday and could not respond until now.

Yes, patience is my middle name. My timeline for selling my personal residence is 4+ yrs. from now. Essentially what your co-worker did here was give the (sr. citizen) owner a “life estate” in their own (former) residence with a 10-year cap on occupancy.

I could see where this could be attractive to a sr. citizen owner because the up-front and sometimes separate “draw-down” fees on a reverse mortgage eat up too much of the equity. I could imagine that these fees would be even higher now, because the RM lender may be worried about future value and saleablility.

You mentioned that your co-worker charged a “nominal rent.” I wouldn’t mind charging a bit less than market since there would be no move-outs but “nominal” would not even cover half the carrying costs and landscaping svc. I would also be concerned that my new “greatest-generation” tenant has not paid rent/mtg. in decades and also had Prop. 13 tax treatment so is not USED TO PAYING THESE THNGS. Wouldn’t they tend to feel that even a reasonable rent I would be asking for was exorbitant?? Due to the advanced age of the tenant, I would probably feel more comfortable if their rent was paid to me automatically every month from their bank or trust acct. I also don’t see them maintaining the property as tenants don’t normally do this.

Do you know the extent of maintenance that was performed by the seller/tenant in your co-worker’s property performed? How old were they when they finally vacated and why did they vacate early??

I’m also skeptical that there would be any heavy or cosmetic fixers available anymore whose backyards are facing dtn. SD with an unobstructed, sit-down view within the house. I would have figured they have all been bought up, rehabbed and flipped by now or their “rehabbers” are still enjoying them.

If I try to do this in this day and age and cannot drive the price down far enough, I would probably have to get a passive equity-partner or a (temporary or for the life of the contract) “silent second” to make a deal like this. I would not want to buy a “keeper” property as tenants-in-common with another party on title for a variety of reasons.

Thanks again for the interesting idea, UCGal! I think it might be doable if the mechanics of the “life-estate rental-contract” were properly spelled out.

[UCGal]

I don’t know how maintenance was handled.

I do know that when the former owner moved out he had to do significant updating – but that was expected and factored into the purchase price. (redid the floors, kitchen, etc.)

Landscaping… I suspect it was semi-neglected… prior to the change in occupancy… I know he’s spent some time and effort getting it to the way he wants it.

I guess I wouldn’t consider this a typical rental situation – the person either maintained the home or didn’t when they owned it. If they did maintain it, why would they suddenly stop watering the lawn for example… I suspect they continued on the way they had prior to change in ownership.

My coworker is out of town, but I’ll ask him some of your questions when I see him next.

[UCGal]

I don’t know how maintenance was handled.

I do know that when the former owner moved out he had to do significant updating – but that was expected and factored into the purchase price. (redid the floors, kitchen, etc.)

Landscaping… I suspect it was semi-neglected… prior to the change in occupancy… I know he’s spent some time and effort getting it to the way he wants it.

I guess I wouldn’t consider this a typical rental situation – the person either maintained the home or didn’t when they owned it. If they did maintain it, why would they suddenly stop watering the lawn for example… I suspect they continued on the way they had prior to change in ownership.

My coworker is out of town, but I’ll ask him some of your questions when I see him next.

[UCGal]

I don’t know how maintenance was handled.

I do know that when the former owner moved out he had to do significant updating – but that was expected and factored into the purchase price. (redid the floors, kitchen, etc.)

Landscaping… I suspect it was semi-neglected… prior to the change in occupancy… I know he’s spent some time and effort getting it to the way he wants it.

I guess I wouldn’t consider this a typical rental situation – the person either maintained the home or didn’t when they owned it. If they did maintain it, why would they suddenly stop watering the lawn for example… I suspect they continued on the way they had prior to change in ownership.

My coworker is out of town, but I’ll ask him some of your questions when I see him next.

[UCGal]

I don’t know how maintenance was handled.

I do know that when the former owner moved out he had to do significant updating – but that was expected and factored into the purchase price. (redid the floors, kitchen, etc.)

Landscaping… I suspect it was semi-neglected… prior to the change in occupancy… I know he’s spent some time and effort getting it to the way he wants it.

I guess I wouldn’t consider this a typical rental situation – the person either maintained the home or didn’t when they owned it. If they did maintain it, why would they suddenly stop watering the lawn for example… I suspect they continued on the way they had prior to change in ownership.

My coworker is out of town, but I’ll ask him some of your questions when I see him next.

[UCGal]

I don’t know how maintenance was handled.

I do know that when the former owner moved out he had to do significant updating – but that was expected and factored into the purchase price. (redid the floors, kitchen, etc.)

Landscaping… I suspect it was semi-neglected… prior to the change in occupancy… I know he’s spent some time and effort getting it to the way he wants it.

I guess I wouldn’t consider this a typical rental situation – the person either maintained the home or didn’t when they owned it. If they did maintain it, why would they suddenly stop watering the lawn for example… I suspect they continued on the way they had prior to change in ownership.

My coworker is out of town, but I’ll ask him some of your questions when I see him next.

[an]

bearishgurl, if you’re concern about the rent part of the equation, which I would be too, you might also want to offer that person a different offer, where they can live in it for free, but the price you pay would be lowered by the amount of rent you would lost from them not having to pay you rent. That way, they get their lump sum, live in their house for another 5-10 years, and not have to worry about payment. You might be about to get away with a lower tax bases too. Would be a win-win combo.

[an]

bearishgurl, if you’re concern about the rent part of the equation, which I would be too, you might also want to offer that person a different offer, where they can live in it for free, but the price you pay would be lowered by the amount of rent you would lost from them not having to pay you rent. That way, they get their lump sum, live in their house for another 5-10 years, and not have to worry about payment. You might be about to get away with a lower tax bases too. Would be a win-win combo.

[an]

bearishgurl, if you’re concern about the rent part of the equation, which I would be too, you might also want to offer that person a different offer, where they can live in it for free, but the price you pay would be lowered by the amount of rent you would lost from them not having to pay you rent. That way, they get their lump sum, live in their house for another 5-10 years, and not have to worry about payment. You might be about to get away with a lower tax bases too. Would be a win-win combo.

[an]

bearishgurl, if you’re concern about the rent part of the equation, which I would be too, you might also want to offer that person a different offer, where they can live in it for free, but the price you pay would be lowered by the amount of rent you would lost from them not having to pay you rent. That way, they get their lump sum, live in their house for another 5-10 years, and not have to worry about payment. You might be about to get away with a lower tax bases too. Would be a win-win combo.

[Author]

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