East Brunswick, NJ · Member since 2013 · 22 posts · 4 votes
One of the responses that I have received from an absentee owner is that her and her two brothers all have ownership in the property and have a life estate. The two brothers currently live in the property and dont want move out, they both have terrible health and are in their 50's. The sister says they are drunks and constantly in the hospital. Would it be worth it to try to convice these two brothers to leave? or wait for them to pass away? (sorry to be to forward). Sister says she will take anything on the sale of the house as long as we can get them to sell. The house is worth about $150k. Your thoughts.
I was thinking of offering $35k and going up to $50k. and wholesaling it up to $85k. I have time but not sure if this is a long drawn out process since there is a life state.
Title can't be sold from a life tenancy or estate, it probably has a revisionary clause in title that grants title back to others after death. The sister has no right to sell. Doesn't sound like the two in there are willing to abandon their interests to live in the street.
Not being negative, but this is the type of think investors bump into and spend time and effort with that could be avoided if they started in RE with the basics of title rights in ownership......I know it's boring stuff, but it can save you time and money which is almost like making money, the basic stuff matters. :)
I have bought the remainder interest in properties but nowdays I assume the life estate is going to live to be 110. so what I do now days is get an option on the remainder interest and try to buy the life estate. If I can't I pass, I had the experience twice of having a life estate that seemed like a sure thing they were going to die in the next few years and they lived for almost another 20. Changed my thinking.
I did have one that would sell me their life estate interest as long as I got the remainder interest cheap which was a sister she hated. I had an actuary give a projected life span and showed the sister about how long she would have to let her sister live there, she said she would give me the property if I could get her blankety blank sister out of there.
Well I got the tenant sister out by buying her interest and resold the property to the sister under an option I gave her effective when I owned the property. The title company paperwork showed me getting the remainder interest real cheap which satisfied the life estate sister and she left town with her new boyfriend. Alway wondered if she found out her sister ended up living in and owning their parents home.