I need help! - Posted by RFC
Posted by RFC on November 30, 2000 at 21:40:32:
I have located a motivated seller. He is 90 and recently moved into a duplex with his sickly wife. I talked with his daughter.
The home is free and clear. Vacant. He has the house priced at $145k, which matches up with the comps in the neighborhood, but I learned from his daughter that they arrived at this price considering the improvements that they were going to make … which they never did.
They are looking for someone to purchase it, fix-it-up, and live in it or sell it.
She believes he will sell around $120k. She informs me that he is not interested in owner financing … but when I asked about how the money would be passed along to her when they pass on … I got her attention. It appears as if she would not mind financing such a deal and receiving a check each month for the next thirty years, but it is her father I have to sell (in order to buy.)
I’m posting this … cause I want to know how this might be put together. Is there a way that the home can be put into a trust or something that might defer the tax consequences on this sale? Something that the daughter may benefit from?
For example: Can the owner put the home into a trust that the children control or inherit when he passes, then I can purchase the home from the trust (children)? The daughter appeared as if owner financing would be agreeable to her … especially when I mentioned she could receive a check each month for 20 - 30 years!
I was thinking I could offer them $120k with nothing down, citing that I need my cash to make the necessary improvements. I would make the minor improvements, then sell it for $145k. I would simply have to recover my cash in plus a profit.
I would welcome any insight here.
Thanks in advance.