Wholeselling in a 55+ Retirement Comm. Can I do it, if younger?

Buying & Selling Real Estate
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Wholeselling in a 55+ Retirement Comm. Can I do it, if younger?

Billy Bell
Flipper/Rehabber · Phoenix, AZ · Member since 2015 · 80 posts · 10 votes

Hello BP Community,

I received a lead about a guy who inherited a home from his dad that recently passed away. The son who owns it now wants to sell it quick, but it is in a retirement community that requires the owners to be over 55. I am only 24, so I do not fit that requirement, but I am thinking that there has got to be a way to at least wholesale the property and not officially take ownership. Does anyone have any similar experiences with deals like this? I will call the retirement community now and see if they would allow someone younger to own the home and rent it to a retiree, and other such questions.

Thank you!

Billy Bell

mesa, arizona.

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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
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Actually, Lisa is the most correct. Owning may not be an issue, but that will be shown in the CC&Rs on title, if the restriction is against an owner under 55 is a title restriction, if it isn't then it's an occupancy restriction. If it is a deed restriction, you can't even have a valid contract as the equity in title transfers at the time of the contract, so if your contract isn't able to accomplish that, you don't have a valid contract. 

If age isn't a deed restriction, I'd bet that community would welcome a rehab to improve the property. If the deed is an issue, that's a matter that can be taken care of by good lawyering. :)   

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  • Dennis Olson
    Real Estate Professional · Glendale, AZ · Member since 2015 · 13 posts · 4 votes
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    Interesting question. Wholesale is different than renting though. If you do an assignment you can sell it to a buyer that is 55 plus. These retirement communities work on their own set of rules. Perhaps you can add someone you know on the title and then rent it.

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  • Billy Bell
    OP
    Flipper/Rehabber · Phoenix, AZ · Member since 2015 · 80 posts · 10 votes
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    @Dennis Olson

    Yeah i'm wondering about the owning/renting topic mostly to determine how hard it would be to sell. Such as: would i have to narrow my options of buyers to 55+ or could I assign it to someone younger for them to rent it out the the 55+ etc. i have a feeling some to most retirement communities don't allow renters. Like you mentioned, they have their own set of rules so I'm just wondering if it's possible for me to play with this one.

    Thank you!!!

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  • Fernando G.
    Investor · Avondale, AZ · Member since 2015 · 36 posts · 0 votes
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    Hi Billy,

    You can own the property, but you can not live in the property.

    Yes you can rent it or sale it to 55+ people.

    In case you want to wholesale it, we can buy it...call us

    Thanks.

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  • Billy Bell
    OP
    Flipper/Rehabber · Phoenix, AZ · Member since 2015 · 80 posts · 10 votes
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    Originally posted by @Fernando G.:

    Hi Billy,

    You can own the property, but you can not live in the property.

    Yes you can rent it or sale it to 55+ people.

    In case you want to wholesale it, we can buy it...call us

    Thanks.

     Great to know Fernando!! I will definitely be looking to wholesale! My mom, a realtor who shared the lead to me gave me a ballpark market value for it around 100k.  It's 950sqft needs some cosmetic work like flooring and paint. Going to run the numbers to find a max offer price. Should i go with the 80% arv less repairs and my profit?

    Thank you!!!

    Billy Bell

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
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    @Billy Bell  I have bought these at trustee sales  and I was not 55 at the time.

    just rehabbed and resold them like any other fix and flip

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  • Billy Bell
    OP
    Flipper/Rehabber · Phoenix, AZ · Member since 2015 · 80 posts · 10 votes
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    Originally posted by @Jay Hinrichs:

    @Billy Bell  I have bought these at trustee sales  and I was not 55 at the time.

    just rehabbed and resold them like any other fix and flip

     Excellent news! Thank you Mr. Hinrichs!!

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  • Fernando G.
    Investor · Avondale, AZ · Member since 2015 · 36 posts · 0 votes
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    Yes that is right you can rehab it and sale it by yourself or wholesale it..

    most of the investors criteria 75% - Repairs.

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  • Lisa Thoele
    Investor · Newberg, OR · Member since 2012 · 161 posts · 82 votes
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    I would double-check with your title company and the HOA if one exists - I bought one with a business partner and had to use her as the primary for the HOA purposes because she was over 55. Best Wishes, Lisa

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  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    11y

    Actually, Lisa is the most correct. Owning may not be an issue, but that will be shown in the CC&Rs on title, if the restriction is against an owner under 55 is a title restriction, if it isn't then it's an occupancy restriction. If it is a deed restriction, you can't even have a valid contract as the equity in title transfers at the time of the contract, so if your contract isn't able to accomplish that, you don't have a valid contract. 

    If age isn't a deed restriction, I'd bet that community would welcome a rehab to improve the property. If the deed is an issue, that's a matter that can be taken care of by good lawyering. :)   

    2Reply
  • Billy Bell
    OP
    Flipper/Rehabber · Phoenix, AZ · Member since 2015 · 80 posts · 10 votes
    11y
    Originally posted by @Bill Gulley:

    Actually, Lisa is the most correct. Owning may not be an issue, but that will be shown in the CC&Rs on title, if the restriction is against an owner under 55 is a title restriction, if it isn't then it's an occupancy restriction. If it is a deed restriction, you can't even have a valid contract as the equity in title transfers at the time of the contract, so if your contract isn't able to accomplish that, you don't have a valid contract. 

    If age isn't a deed restriction, I'd bet that community would welcome a rehab to improve the property. If the deed is an issue, that's a matter that can be taken care of by good lawyering. :)   

    That is exactly what I was afraid of. I'm going to call the HOA and figure that out today, as they were closed on saturday when i first heard about the property. Thank you Bill and Lisa!!! Wish me luck!

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  • Billy Bell
    OP
    Flipper/Rehabber · Phoenix, AZ · Member since 2015 · 80 posts · 10 votes
    11y
    Originally posted by @Lisa Thoele:

    I would double-check with your title company and the HOA if one exists - I bought one with a business partner and had to use her as the primary for the HOA purposes because she was over 55. Best Wishes, Lisa

     Thank you so much Lisa, this helps incredibly!

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  • Bevla Reeves
    Real Estate Agent · Scottsdale, AZ · Member since 2011 · 471 posts · 296 votes
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    We've flipped a few houses in 55+ communities purchased from auctions...ownership wasn't a problem, but we didn't hold on to them.

    It's a very interesting question!

    Good luck Billy! ;)

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  • Billy Bell
    OP
    Flipper/Rehabber · Phoenix, AZ · Member since 2015 · 80 posts · 10 votes
    11y

    Just wanted to give everybody an update. The inheritor of the propertie decided to fix it up himself and try to get top dollar. Thank you guys for all your help and information, yet another example of how amazing the site and community is here on BP!!!

    Thanks again and good luck to you all!!!

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