My son has been severely disabled since he was a small child [he is 20 now] My husband and I spent hundreds of thousands of dollars looking for a miracle cure.[ now broke or would be doing more for him] We thought we had plenty of time to figure out how he could have a good future despite his disabilities. But then I got cancer and my husband developed congestive heart failure [we are old parents] Finally he applied for ssdi [on his late fathers earning records] He has been approved and receives backpay soon. He is incapable of working but we are hoping that we can help him to build an independent life through real estate investing.[ renting ouT property for now. at thispoint he is not near close to capable of living on his own] He will receive [I think] 15 to 20 thousand in back pay. That would be enough for a nice down payment on one of those 50 to 60 thousand dollar homes in Pueblo colorado. Until he is making enough money from investing, he will be receiving a regular check from ssdi, so he will have that money to show the bank. He has no credit history,none, so we sent away for a secured credit card this afternoon. Should we send for a second one? Also, we have someone willing to employ my son for 2 or 3 hours a week, whenever he is capable of it, to help clean and such, just so that LJ will be able to show employment. What else can we do to help LJ qualify, and how long will it take a credit card history to make a difference?
The 2 biggest things banks look at for a loan in my experience are work/income history and value of the property. It appears getting him a loan without you cosigning will be tough, especially since he has no experience doing a rental business. You also need to make sure his owning a rental property will not cause him to lose his eligibility. A regular income may cause it to be reduced or lose it altogether.
You might be able to buy it yourself and put it into a spendthrift trust for quality of life advances only, no necessities. All payments being in pure discretion of trustee. You will need to divest yourself as owner in order to protect it from your creditors.
I am sorry to hear about your problems. I hope you are able to get something going. Be sure to pick a trustee you truly have a lot of faith in. It is easy for a bad trustee to run a trust into the ground. Best of luck
What is the nature of his disability? It sounds like your heart is in a good place. But I'm not sure anybody will lend him money based upon him basically getting a charity job from a friend, not too mention being incapable of living by himself. I think it has good intentions but a bad idea all the way around. Your best bet is to find others with his disability or similar ones and get him into some sort of group home and he will have some money from SSI to buy him clothes and a little bit of spending money. I have a nephew that is in a wheelchair, his faculties were ok a few years ago until he stopped breathing twice after a surgery he had. He's a little slow now understandably. He had an opportunity years ago to go to a school in San Antonio to learn life skills and get trained to be able to take care of himself at some level. Unfortunately, my sister in law didn't think it was a good idea, which is another story completely in itself. So there are programs out there to help him out and for him to be as independent as he possibly can.
LJ has lesions on his thalamus [both sides] which causes his brain to signal to the nerves in his body that they are under acute attack [at his worst he was passing out hundreds of times a day from the pain] He also is high functioning autistic and has profound tourettes but that's kindof like worrying about a paper cut when someone is having a heart attack.
My son has always had big dreams, even before he became ill. Most people with his condition take their own life. I will not take the dream from him.
He is not receiving ssi. He is receiving ssdi based on his late fathers ss record and that LJ was disabled before 22 year of age. He will be receiving 852 a month [after medicare] plus a tiny bit from a tiny job. As soon as he receives "backpay" [for the 2 years he waited for approval] it will probably be about 20 thousand, which he would like to use as down payment on a 50 or 60 or 70 thousand dollar rental in Pueblo.
he has no credit, so we just sent off for a secured credit card [ we pay them $300 and he has $300 of credit. It does not show up different than any credit card to credit reporting agencies.]
Today I spent alot of time researching and read that lenders always want more than one type of credit, and so as soon as his backpay comes, he is going to get a passbook savings loan. As with the credit card, he will be borrowing his own money and will pay it back on time every month, and it will show up as a regular loan on his credit as well.
He is a smart young man. Do you think with the credit card, loan, substantial down payment, guaranteed monthly income, and a tiny job he might be able to qualify in 6 or 8 months? [my sons and grandkids will do the fixing up. Between them we have house painters, an electrician, a floor layer, and connections to get some of the supplies at cost. Plus, being autistic myself, my intention is to research and find out how to fix many things myself. Plus, maybe ask some local churches to donate some manpower if I can, and I can, come up with a win/win deal]
So, any positive comments? Please?
I won't tell you what you want to hear. But I'll be honest with you. I don't understand all the medical issues honestly, I have an idea of what it is, but do not know his functionality overall. It sounds like he is at some level.
Where will he be living during if he rents this place out? How will he pay for wherever he lives and any other living expenses? And if it is with you and dad, what happens when you die? And by your original post, it sounds like it may not be far away with you age and medical conditions. What will he do if somebody trashes the place and it takes a little while to fix the place up to make it livable again? You still have to make a mortgage payment, the bank isn't going to care about his condition. People will be generous and donate time and materials, but to continually ask for it is unfair to them. There's a lot more involved than buying a cheap house, renting it out and banking the money. You don't want it to turn into a curse for him and he get it repo'd. Then the money he has went for naught so he could have one big hurrah. I understand what you want to do. You love your son and want him to be happy. Nothing the matter with that. But you must use common sense along the way. My advice would be to talk to a mortgage lender and see what they think. Based upon what you are saying, I personally think it's a bad idea that will ultimately end in disaster for your son, based upon his medical condition and his inability to earn a legitimate and substantial enough income to cover any deficiencies should a tenant tear the place up or another significant repair is needed such as a new roof or a new heater.
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I just read a bit on the spendthrift trust. It sounds interesting. I will do more research. I would not want anything in my own name as both my husband and I are likely to have 'malingering" last days and there is a chance that would result in my son having nothing.
I am becoming a fairly well known autistic activist. [ okay, only known at all in the autistic world. please , no Temple Grandin and cows, or Rainman comments] Perhaps some of the autistic people working to build Ocate Cliffs [ a retreat center to be run entirely by autistics that we are helping to build outside of Albuquerque] that I will meet in July would also help with their skills.
When LJ first turned 18, he signed up as an "Avon Dude." We hung around 3,000 books on doors which brought in about 20 customers.and he was bringing in 200 dollars a month from online sales. He quit because kids made fun of him. I think he would no longer have a problem with that. That would be a little more income to help with a loan.
So, with all of these things, can you see our dream being realistic?
Since he has a qualified disability, I would tap the resources in the community that provide guidance and counseling and financial resources that help individuals with disabilities secure meaningful employment or aid in establishing self-employment. One such resource is the Department of Vocational Rehabilitation or Department of Rehabilitation (varies by name per state). They can do an assessment to see if he has the attitude and aptitude suited for an occupation in real estate. They can also provide a variety of other supports. Wishing you and your family all the best!
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