Where would I find an investor for this project?

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Submitted by gpdrasnin on April 28, 2016 - 2:17am

I have an amazing 81 yr old client in San Diego searching for a cash investor open to generating an immediate 20-25% equity gain on a cash investment of approx $280k. Here's how it works.....she is single, no children or heirs. She wishes to buy a 1-2 BR condo in the UTC area (approx value of $350k). She will have approx $75k from the sale of her current condo to put in to the purchase and is looking for the investor to put the remaining ~ $275k in cash toward the purchase. The condo will be titled in both my client's and the investor's names, and my client will pay all maintenance, HOA, upgrades and all or partial property taxes. In return this is a "life estate" wherein she is able to live in this condo until she dies--at which time 100% ownership goes to the investor. What a win!

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!

Submitted by no_such_reality on April 29, 2016 - 7:59am.

scaredyclassic wrote:
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

If she's on title, isn't assisted living going to suck all the equity out of the property?

Submitted by harvey on April 29, 2016 - 8:17am.

Gotta love the piggs.

Granny's not even our tenant and we've already evicted her in the name of cash flow.

Submitted by FlyerInHi on April 29, 2016 - 8:16am.

flu wrote:

I really hate how some of these people exist. One my reasons why I wouldn't want to "partner" with anyone I don't know well, and even then, I am reluctant to.

These people are all over. And other people fall for investing schemes all the time. Not a rare thing.

Submitted by bearishgurl on April 29, 2016 - 10:11am.

no_such_reality wrote:
scaredyclassic wrote:
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

If she's on title, isn't assisted living going to suck all the equity out of the property?

NSR, a "life estate" agreement is not recorded. She can't be on title. The investor will be on title and subject to all the liability of the tenant(s), their guests, and sublets, as well as for the HOA dues and taxes. Her "life estate" agreement could prohibit her from being evicted if she fails to pay the HOA dues and property taxes which likely would be wa-a-a-ay beyond her monthly budget. In any case, it would be a "public relations nightmare" for the investor to try to evict her in her '80's or '90's, even if she breached the "life estate" agreement and they were in the right to attempt to gain possession of their property.

Submitted by bearishgurl on April 29, 2016 - 10:13am.

I have a feeling the OP here who perhaps "represented" his elder client at one time (w/estate planning services?) does not practice in the state of CA. OP??

Submitted by Hobie on May 1, 2016 - 3:53pm.

BG: A legal life estate is recorded. It is also very clear who holds title in the present and when the grantor passes.

This 'life estate' context here is simply a play on words to tug at your emotional side.

NSR hit on a great point about assisted living seeing the total property amount. Bad deal for all except the scammer putting it all together.

Is it not a surprise he hasn't commented? No, as he is just fishing for the objections he will have to overcome. We've been suckered.

Submitted by Hobie on May 1, 2016 - 3:52pm.

harvey wrote:
Gotta love the piggs.

Granny's not even our tenant and we've already evicted her in the name of cash flow.

I know you are having fun but this this points out why family needs to help family not enter into a business with a stranger.

Submitted by phaster on May 3, 2016 - 4:38pm.

harvey wrote:
Gotta love the piggs.

Granny's not even our tenant and we've already evicted her in the name of cash flow.

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