Where would I find an investor for this project?

[Anonymous]

It’s a clever idea but the numbers in the op definitely don’t pencil.

And how do I know granny won’t trash the place with wild parties?

[bearishgurl]

[quote=La Jolla Renter]livinincali’s thought process looks accurate to me.

I did a quick search on the internet and found that a 81 year old woman’s life expectancy is 9 years.

Way better play to put 40% down on 2 condos that you own outright.

A 350k condo should rent for $1,800 – $2,000 per mo.[/quote]If the OP’s “client” lives 9 years in the “new” condo with only a $75K “investment,” then that comes out to just $694.44 month “rent” for her (for 108 months) to live in the UC area! That’s wa-a-a-a-ay under the market there and actually “well under the market” for just about anywhere in SD County!

OP, you say your “client” owns a condo. Is it located in SD County? I’m guessing that she is a bit old to still have a mortgage and if that is the case, it likely located in a much cheaper market in the state or country. OP, why is she considering selling at this late date? And are you sure she can actually recover $75K from the sale of it? And why must it be UC area?

Have you ever heard of Lutheran Tower in dtn SD or Congregational Tower in Chula Vista (there may be others)? If there are openings (from deaths), she might be able to get in (or on a waiting list) to pledge whatever assets she has remaining to the church or nonprofit to live out the rest of her life in one of these “independent living” apts. However, they typically only have a “kitchenette,” a small LR, one small BR and a small bath with a tub and shower for a total of <300 sf per unit. Most of the residents do not drive anymore so there is limited underground parking. Just a suggestion for you and not sure if out-of-county applications are viewed with the same priority as longtime county residents' applications.

[spdrun]

The Paris thing seems almost like buying a rent-controlled co-op apartment in NYC. Apartment for sale for $350,000. HOA + tax (combined payment) are say $800/mo. Tenant is paying say $415.31/mo.

Tenant has a right to occupy the place till death do them part, but their children could also move in and then THEY have the right to occupy the place for life.

So you might be stuck owning the place, paying the difference of the rent-controlled rent and maintenance for a VERY long time…

[flyer]

Everyone will get old (if they’re lucky–some won’t make it that long) and some will need financial assistance in order to live out their lives–so a situation like this is not that unusual.

However, even though we’ve helped family members and friends with property/financial issues, I can’t imagine getting involved in a deal like this with someone I don’t know.

[bearishgurl]

I have two “neighbors” (both women) who are 94 and 97 years old. They are living in their long-owned homes but require a lot of care for daily living, of which the burden falls on their 60/70-something children, who live in the same neighborhood. Women can live a long time, especially those from the “Greatest Generation” who never drank or smoked and never had the stresses of a FT job (except maybe for a very few years during WWII). See my relevant post of today:

http://piggington.com/ot_predictions_2016_presidential_election#comment-266986

This isn’t a good deal for any “investor.” Also, without the whole process of taking $75K in “rent” in “advance of need” being videotaped (to prove she had “sound mind”) with her attorney by her side, as an investor, I wouldn’t touch it with a ten foot pole. Her “heirs” could slap you with a lawsuit for fraud and elder abuse, especially if she died soon after moving into the property which was to be her “life estate.” And rightly so, they could very well win a judgment in this day and age.

Caveat emptor to both sides of this “shady deal.”

OP, if the only reason your client wants to sell her (inexpensive) condo in Fresno (or AZ/NV, etc) is to move to a more hospitable climate (SD) at this late date, she should have thought of this at least 20 years ago and planned accordingly.

A lot of people have a “dream” to “retire” in a CA coastal county but realize it can never be a reality because of the choices they made earlier in life. It is what it is.

[bearishgurl]

[quote=flyer]Everyone will get old (if they’re lucky–some won’t make it that long) and some will need financial assistance in order to live out their lives–so a situation like this is not that unusual.

However, even though we’ve helped family members and friends with property/financial issues, I can’t imagine getting involved in a deal like this with someone I don’t know.[/quote]Of course, flyer. But what troubles me about this scenario is that OP states his “client” already OWNS a condo with $75K in equity. Presuming it is paid off, why does she want to change things now? The only reason I can see would be to live out her remaining years in a much more expensive locale.

That’s not a reasonable proposition for someone of limited means. There comes a time in life when one must face reality about how the rest of their life is going to look going forward, based upon the resources they have available. And that ship sailed long ago for the OP’s 81 year-old “client.”

[bearishgurl]

[quote=flu][quote=Myriad]Reminds me of a story I read once about these deals in France where the buyer gets the property after the death of the owner. In exchange, the buyer just pays the owner a certain amount each month.

Well this guy went into this deal with a lady who was 60. 40 years later, the buyer is already dead and his kids are still paying the lady living in the house.

http://parispropertygroup.com/blog/2013/occupied-paris-property-forthcoming-movie-my-lady-puts-spotlight-french-real-estate-law/
[/quote]

Lol.

Yeah like I said, pass. For all we know the nice old lady cold be the OP’s relative[/quote]Ha, ha … if that is the case, then why doesn’t HE try to come up with the $275K to help her buy her “dream” condo?

Are there actually condos available in the UC area for $350K? That sounds kind of low for that area.

[bearishgurl]

[quote=scaredyclassic]Are her medical records avail. For review?. For the right level of extreme decrepitude, it could work. Of course, then , she’s probably be in assisted living[/quote]LOL …..

[bearishgurl]

[quote=livinincali][quote=FormerSanDiegan]
b) Take a loan for 75K and have immediate cash flow of maybe $600 – 700 per month.
[/quote]

I forgot about that aspect of the deal as well. You aren’t even cash flowing. You have to wait until the end of the deal before you see any money.

Probably best to just advise your client to move to a lower cost of living state. Albuquerque, NM might be a good option. Property taxes are low you can get a condo for < $75K. Climate is pretty nice year round although it is at elevation. You aren't staying in San Diego for the kids or grand kids.[/quote]Agree, but I feel that OP's "client's" condo isn't even IN SD County, whether she currently resides there herself ... or not. It very well could be in ABQ. If it was located in a CA coastal county, she would be able to recover much more than $75K at this late date if she sold it.

It’s not very common for an 81-year old (esp one with limited means who would even want to “buy” a “life estate”) to have an outstanding mortgage on residential real property they own.

Persons with means would have already bought their “retirement” home long before reaching the age of 81.

[bearishgurl]

[quote=gpdrasnin] . . . There are many seniors in the same situation and this could lead to several opportunities for both the seniors and investors! Rents and home prices are so high that seniors cannot sell their current home and afford the cost of rent or a mortgage in addition to living expenses for any length of time. I love helping seniors and I truly believe that my client has come up with a wonderful solution that may work well for many others. Are there investors that would consider this type of Life Estate scenario? Is it a good deal for them? Please feel free to pick it apart….THANKS![/quote]gpdrasnin, I’m trying to understand why an octogenarian (or older) would want to sell their current home and move to a much more expensive home (in the absence of moving to a board and care facility or nursing home). Especially one who owns a home in CA and may be paying just a few hundred in property taxes in accordance with Prop 13. And one who will not be moving to the more expensive home to be near relatives. And who already owns a condo so doesn’t have the burden of taking care of a big lot.

Perhaps you can enlighten the Piggs a bit more on her situation for inquiring minds.

[Hobie]

This is the good Pigg discussion I like to see !!

I’ll add, I think she will cash flow out and you would be stuck trying to evict her. Seems with only $75k, now add her medical, UTC HOA, and taxes, not enough money. On top of that by the time the s*it hits the fan, you would be on the hook for back HOA and fees as you are an ‘owner/partner’. No actual life tenant agreement here, just a weak stab to shill you.

[Hobie]

BG: this is a scam. OP is wanting to ride old ladies coat tails into a UTC condo.

You are right, why would and old lady want to move, both added costs, and location is suspect.

[livinincali]

[quote=bearishgurl]Of course, flyer. But what troubles me about this scenario is that OP states his “client” already OWNS a condo with $75K in equity. Presuming it is paid off, why does she want to change things now? The only reason I can see would be to live out her remaining years in a much more expensive locale.
[/quote]

I don’t think the condo is paid off. Essentially I don’t think she can afford to live where she might like. It’s really the bottom line of this whole thing.

[scaredyclassic]

How would you know when she died. Say she sublets it to a relative and moves to points unknown. She could be dead 20 years before u confirm?

[scaredyclassic]

My mom has lived in the same rent controlled apt. In NYC since the 60s. An investing dentist bought her unit in the 80s subject to her rent controlled tenancy. I think she outlived the dentist.

[Author]

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