I'm a new investor and looking for any advice or guidance around quit claims with consideration and a side note for payments. About 6 months ago, my grandparents moved into an assisted living facility. My aunt is handling their finances and determined with a financial adviser that selling the house outright would actually have negative consequences on my their benefits. After some thought, we discussed me acquiring the house to use as a rental and I'd also look to leverage it for future real estate deals. The house is paid off, no mortgage and located in Ohio.
The two options we are looking at are a quit claim of the property to me or land contract. I don't see any real benefit to the land contract from an investor standpoint, I assume there is no way to leverage the property for it's equity or to get a HELOC with this agreement, right? I'm inclined to a quit claim with consideration (say, $10,000) that wouldn't impact their benefits/care negatively as a sale would. Along with that, my thought was a side note agreement to pay say $500 per month for 10 years which would really help with their medical bills.
My aunt consulted with her attorney who said that such a quit claim deal with a side agreement would not be legal. I have not been able to find anything online confirming that. I have not yet consulted with my own attorney, I was hoping first someone here might have experience with quit claims to family and any such structured notes for payments and the best way to go about that. Or, I'm interested in other strategies to try to leverage the property for investment without a traditional sale that would affect their benefits.
Remember there is a look back period for any benefits received from the government. I do not care to pay for it nor provide advice on how to perpetrate a fraud. Buy the house at fair market value--listen to the advice from the attorney.
Hey Stephen, thanks for the reply and advice... greatly appreciated. I'm going to seek guidance from my attorney as well.