Too many deals! Need some creative ways to stretch my capital

Ann Arbor, Michigan
Buying & Selling Real Estate
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Too many deals! Need some creative ways to stretch my capital

Matt Ridenour
Rental Property Investor · MI · Member since 2019 · 113 posts · 39 votes

Ok Bigger Pockets fam.  I've had tremendous success asking questions here before, so here's hoping!

The quick and dirty:

I have several projects going currently (2 flips and a new build STR.) I haven't stopped my marketing campaigns, and suddenly I have several potential deals coming at me at the same time. It's a good problem to have, I know. I'm solving some of it with partners, that's not what I'm asking.

What I'm asking:

I have a few older folks looking to sell me their homes and downsize.  I'm looking for win-win solutions that will preserve my capital and get them the money they want.  My best current strategy is a lease purchase agreement, where they give me the house for a low lease amount and I cash them out after I'm done remodeling.  I'm also trying to find a way to "sponsor" their stay at a senior living facility for "x" years in exchange for the house.   In this scenario I would place that amount in escrow and have it auto-debit monthly until the funds were depleted.      

I'm certain there are good strategies people are employing.  If you've heard a good podcast or read a good book I'd love a recommendation.  I focus only on win-win and easily explainable strategies for these older folks and their families.  The last thing I want is to come across as a slimy salesman.  I'm very open with my sellers in terms of numbers.  I want them to know up front what I do, what I make, and why I have to have a "lower than retail" price.  

Thanks so much for any discussion.  Sorry for the long post!

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Mitch Conrad
Rental Property Investor · Arvada, CO · Member since 2016 · 43 posts · 47 votes
1y

Hi Matt. My wife and I have a portfolio of senior living homes and communities. I also like to find win-win scenarios for seniors looking or needing to move into some level of assisted living. Your lease purchase arrangement would be good as long as the senior or their family have enough money for assisted living care until you execute the purchase. We sometimes have seniors who need to move into assisted living immediately without much cash but they have significant equity in their home. I'm a real estate agent and my wife is the operator of our senior living business. She will allow seniors to move in with little or no money as long as I'm the agent listing their property. I list on the MLS but if the property needs updating I also have a list of flippers for these projects. I've thought about making an offers myself but I haven't so far because I don't want any appearance of taking advantage of seniors moving into our care.

I'm a bit unclear how your escrow strategy would benefit the senior.  If I were in their shoes, I would prefer you pay me directly for control the money used for care and other expenses. I also don't see how it helps you if you put the funds in escrow since you won't be able to access those funds. Please explain, because if I'm missing something, perhaps I can add another strategy to my tool belt. 

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  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y
    Quote from @Matt Ridenour:

    Ok Bigger Pockets fam.  I've had tremendous success asking questions here before, so here's hoping!

    The quick and dirty:

    I have several projects going currently (2 flips and a new build STR.) I haven't stopped my marketing campaigns, and suddenly I have several potential deals coming at me at the same time. It's a good problem to have, I know. I'm solving some of it with partners, that's not what I'm asking.

    What I'm asking:

    I have a few older folks looking to sell me their homes and downsize.  I'm looking for win-win solutions that will preserve my capital and get them the money they want.  My best current strategy is a lease purchase agreement, where they give me the house for a low lease amount and I cash them out after I'm done remodeling.  I'm also trying to find a way to "sponsor" their stay at a senior living facility for "x" years in exchange for the house.   In this scenario I would place that amount in escrow and have it auto-debit monthly until the funds were depleted.      

    I'm certain there are good strategies people are employing.  If you've heard a good podcast or read a good book I'd love a recommendation.  I focus only on win-win and easily explainable strategies for these older folks and their families.  The last thing I want is to come across as a slimy salesman.  I'm very open with my sellers in terms of numbers.  I want them to know up front what I do, what I make, and why I have to have a "lower than retail" price.  

    Thanks so much for any discussion.  Sorry for the long post!

    Hey @Matt Ridenour. Have you thought about seller financing?

    [email protected]
    0Reply
  • Matt Ridenour
    OP
    Rental Property Investor · MI · Member since 2019 · 113 posts · 39 votes
    1y

    Hi Jaycee. Unfortunately this part of my business is flipping. I build and run STRs for cash flow. The flips are to pay down my STR mortgages. (My full strat is to own as few STRs as possible to fund my lifestyle for simplicity.)

    I feel like a seller financing would be unfair, as the seller wouldn't reap the benefits of holding the note for more than a few months.  My way around that is the lease purchase.  With that I can flex my offer to include profit sharing if needed.  

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  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y

    You could do the same with seller financing...so 6 of one, half dozen of the other...

    [email protected]
    0Reply
  • Matt Ridenour
    OP
    Rental Property Investor · MI · Member since 2019 · 113 posts · 39 votes
    1y

    I suppose that's a semantics discussion to your point.  Anything in that vein is seller financing.  I can give them 10k up front and then cash them out once I'm done.  Thanks for taking the time to answer.

    0Reply
  • Mitch Conrad
    Rental Property Investor · Arvada, CO · Member since 2016 · 43 posts · 47 votes
    1y

    Hi Matt. My wife and I have a portfolio of senior living homes and communities. I also like to find win-win scenarios for seniors looking or needing to move into some level of assisted living. Your lease purchase arrangement would be good as long as the senior or their family have enough money for assisted living care until you execute the purchase. We sometimes have seniors who need to move into assisted living immediately without much cash but they have significant equity in their home. I'm a real estate agent and my wife is the operator of our senior living business. She will allow seniors to move in with little or no money as long as I'm the agent listing their property. I list on the MLS but if the property needs updating I also have a list of flippers for these projects. I've thought about making an offers myself but I haven't so far because I don't want any appearance of taking advantage of seniors moving into our care.

    I'm a bit unclear how your escrow strategy would benefit the senior.  If I were in their shoes, I would prefer you pay me directly for control the money used for care and other expenses. I also don't see how it helps you if you put the funds in escrow since you won't be able to access those funds. Please explain, because if I'm missing something, perhaps I can add another strategy to my tool belt. 

    2Reply
  • Jaedon Stout
    Investor · Member since 2024 · 10 posts · 4 votes
    1y

    I love the approach you're taking with lease purchase agreements and sponsoring their stay at senior living facilities. Both seem like fantastic win-win strategies that could help the sellers while also preserving your capital. Another option I’d recommend considering is leveraging business funding, which can give you the flexibility to scale and take on multiple deals at once without depleting your personal savings or credit.

    For example, you could access $100K to $150K in 0% interest business credit—this doesn’t report to your personal credit, so it keeps your debt-to-income ratio low. With that, you could cover the costs for renovations, closing costs, or even set up escrow for those senior living sponsorships. Since the funds are business credit, you wouldn’t have to worry about personal financial strain, and it allows you to keep your capital intact.

    I've seen investors use this method in various ways: some use business credit cards (with 0% APR for 12 months) to pay for renovations or bridge loans, others use business lines of credit to cover larger gaps. This could be an excellent option if you're looking to complete the remodel and cash them out as soon as possible. In your case, if you're working with older sellers, you could even use some of the funds to pay for their senior living stays while you wait for the renovations to finish, which would take a huge burden off them and solidify the deal in a way that works for both sides.

    I think this type of financing works great because it keeps the deal flowing and ensures you're able to close without the traditional loan roadblocks. Plus, it allows you to offer the sellers a streamlined process without coming across as too "salesy," since you're focusing on solving their problems in a way that's beneficial for both parties.

    0Reply
  • Travis TimmonsPro Member
    Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
    1y

    You may be on to something here. I can't add a lot of advice to the specific strategy, but I would urge you to focus on simplicity. The longer it takes to explain, the harder it is going to be to convince a seller that it is a good idea.

    0Reply
  • Matt Ridenour
    OP
    Rental Property Investor · MI · Member since 2019 · 113 posts · 39 votes
    1y

    Thanks for weighing in guys!  @Mitch Conrad I'm only thinking of escrow so the senior will have peace of mind that I'm not going to run off with the money.  Also, there may be some tax benefits if they can qualify for federal funding based on low income.  I do love the senior living wing of a business strategy.  Our boomer population's housing needs are exploding!  And I love that you are cognizant of the appearance of impropriety.  Our industry can easily get a bad rap for taking advantage of people.

    @Jaedon Stout do you have business credit institutions you recommend?  My wife and I are full time real estate and therefore no W2.  That makes us unlendable, other than income properties.  I do have a good relationship with a local lender, but not for a business line of credit.  If my memory serves, I worked on this a year or 2 ago and ran into this wall. 

    @Travis Timmons I think the key is to try and include a simple "one sheet" explaining 2 or at the most 3 options for them to choose from.  Optimally you also can get the children of the senior involved so nobody feels their parents were taken advantage of.  

    I appreciate the convo.

    1Reply
  • Jaedon Stout
    Investor · Member since 2024 · 10 posts · 4 votes
    1y

    @Matt Ridenour yes the major Banks are the best especially for no doc funding and lending to start ups with great promotional rates. My main Partner is Chase because gives the biggest limits great when it comes to building a relationship and getting BLOCs and other things also would recommend local credit unions biggest thing you always need to figure is the banks Cap of what they are willing to lend until they need everything Chase for example is 150k Citizen Bank if in area a great one for Blocs only require bank statements to calculate how much you can qualify for.

    Again you want Unsecured No Doc Funding every start up is eligible if your business is one day old or 5 years shoot me a Message if you want a better break down can create a loom for you. 

    0Reply
  • Matt Ridenour
    OP
    Rental Property Investor · MI · Member since 2019 · 113 posts · 39 votes
    1y
    Quote from @Jaedon Stout:

    @Matt Ridenour yes the major Banks are the best especially for no doc funding and lending to start ups with great promotional rates. My main Partner is Chase because gives the biggest limits great when it comes to building a relationship and getting BLOCs and other things also would recommend local credit unions biggest thing you always need to figure is the banks Cap of what they are willing to lend until they need everything Chase for example is 150k Citizen Bank if in area a great one for Blocs only require bank statements to calculate how much you can qualify for.

    Again you want Unsecured No Doc Funding every start up is eligible if your business is one day old or 5 years shoot me a Message if you want a better break down can create a loom for you. 


     Much appreciated.  We bank with Chase for our big transactions.  I'll message you shortly.  Thanks for the info!

    0Reply
  • Ben FernandezBusiness Member
    Realtor · Lancaster, PA · Member since 2025 · 169 posts · 97 votes
    1y

    You need to get licensed. These would be simple referrals.

    Otherwise, wholesale them for a flat fee. Either the owner can pay or the buyer. However you structure it. You could also sell the lead to another company/person. There's plenty of people ready to pay for hot leads.

    If those aren't options, and you are focused on owning them, seller financing, subject-to, and lease options are the only remaining options.

    [email protected]717-945-7040
    0Reply
  • Matt Ridenour
    OP
    Rental Property Investor · MI · Member since 2019 · 113 posts · 39 votes
    1y
    Quote from @Ben Fernandez:

    You need to get licensed. These would be simple referrals.

    Otherwise, wholesale them for a flat fee. Either the owner can pay or the buyer. However you structure it. You could also sell the lead to another company/person. There's plenty of people ready to pay for hot leads.

    If those aren't options, and you are focused on owning them, seller financing, subject-to, and lease options are the only remaining options.

    Thanks Ben.  Not interested in getting licensed.  Not my jam.  Also not interested in wholesaling.  I wouldn't feel good about convincing someone elderly to sell to me and then turn around and wholesale it.  Nothing against wholesaling, I purchase those houses all the time.  I just don't want to sit with an elderly person or their kids and explain my position in that deal.  I would rather just refer them to a friend in my network for free.
    Seller financing works well with someone who wants cash flow for a longer period of time than I am working in. (I shoot for 3 month max on flips) Most of my people don't have a mortgage, so subto isn't a thing for them. That leaves lease option, or what I think is a more solid way to do it - lease purchase.  

    I think there is a creative way to build an income bearing fund that would slowly drip towards living expenses in senior housing or assisted living.  I'm just hoping not to reinvent the wheel. 

    0Reply
  • Ben FernandezBusiness Member
    Realtor · Lancaster, PA · Member since 2025 · 169 posts · 97 votes
    1y

    Gotcha...I like your goals utilizing the lease option. The connection to the other business ventures is interesting. Even if you don't find someone able to chime in on that niche, you sound creative enough to make it a success. Keep up the good work.

    [email protected]717-945-7040
    1Reply
  • Matt Ridenour
    OP
    Rental Property Investor · MI · Member since 2019 · 113 posts · 39 votes
    1y
    Quote from @Ben Fernandez:

    Gotcha...I like your goals utilizing the lease option. The connection to the other business ventures is interesting. Even if you don't find someone able to chime in on that niche, you sound creative enough to make it a success. Keep up the good work.


     Thanks Ben.  Good luck over in Lancaster.  (I pronounced it right in my head, just fyi) ;-)

    0Reply
  • Ben FernandezBusiness Member
    Realtor · Lancaster, PA · Member since 2025 · 169 posts · 97 votes
    1y

    Oh lol...so you know! "Lankisster..."

    [email protected]717-945-7040
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  • Jason Dillard
    Real Estate Broker · Greer, SC · Member since 2013 · 548 posts · 271 votes
    1y

    Give them enough money every month to cover the negative cashflow due to their nursing home bill.  Secure that income stream with your other keepers.  Buy their equity over time with no intrest. 

    0Reply
  • Matt Ridenour
    OP
    Rental Property Investor · MI · Member since 2019 · 113 posts · 39 votes
    1y
    Quote from @Ben Fernandez:

    Oh lol...so you know! "Lankisster..."


     Naild it. ;-)

    0Reply
  • Mitch Conrad
    Rental Property Investor · Arvada, CO · Member since 2016 · 43 posts · 47 votes
    1y
    Quote from @Matt Ridenour:

    Thanks for weighing in guys!  @Mitch Conrad I'm only thinking of escrow so the senior will have peace of mind that I'm not going to run off with the money.  Also, there may be some tax benefits if they can qualify for federal funding based on low income.  I do love the senior living wing of a business strategy.  Our boomer population's housing needs are exploding!  And I love that you are cognizant of the appearance of impropriety.  Our industry can easily get a bad rap for taking advantage of people.

    Hey Matt.  I'm still trying to understand your thoughts around putting money in escrow.  How does an escrow account benefit the senior?  For a senior to qualify for Medicaid, there is a 5-year "look-back" period for determining their assets.  If they owned the house within the past 5 years, it will count as an asset even if it's been sold.  Most Medicaid communities aren't nearly as nice as private-pay communities so if a senior can afford private-pay, they will almost always want to go that way instead of trying to qualify for Medicaid.

    Secondly, how does escrow benefit you?  If you're going to put the purchase price of the home in an escrow account you would still be using the same amount of capital.  Are you saying you would temporarily put money in an escrow account until you flip the property as a way to give the senior more security?  If that's the case, you might as well just pay them.  It seems like lease-purchase and seller-carry are better strategies but perhaps it's only because I don't yet understand the nuances of your escrow strategy.
    0Reply
  • Mitch Conrad
    Rental Property Investor · Arvada, CO · Member since 2016 · 43 posts · 47 votes
    1y

    Ok. I appreciate you're thoughtfulness and I will continue monitoring this thread to see if any other good ideas come up that we can all use. 

    0Reply
  • Alex Mocanu
    Investor · Metro Detroit · Member since 2024 · 15 posts · 3 votes
    1y

    Congrats on your pleasant "problem". Although I never deployed creative financing myself yet, I have done some research on the topic and it seems like simpler is better. 

    Instead of having a complex escrow financing senior care, why not just work up a seller finance deal? There are many flavors/variations, from the seller financing 100% or any other combination used in conjunction with a regular mortgage, commercial loan, private money, etc.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    1y

    if your trying to equity share with the seller.. you simply do a participation note and mortgage I have done quite a few of those over the years.. not in this scenario generally with small builder/developers which really is what you are.. just in the retirement STR side of things.

    Also elder abuse is going to be high risk.. I would for sure have any of these deals blessed by the sellers Attorney.. Once sellers attorney signs off you have no further liability as long as you follow the Note. 

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  • Matt Ridenour
    OP
    Rental Property Investor · MI · Member since 2019 · 113 posts · 39 votes
    1y

    I am appreciating the conversation on this thread.  Thanks for all the thoughts guys.  

    @Jay Hinrichs I was speaking with a friend about a "notice of interest" I can file with the county that will protect both parties in the deal.  I can't imagine my attorney would participate in those proceedings without similar counsel from the seller. I enjoy my clear conscience.  :-)

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