Need advice on reverse mortgage

[Dymond Johnson]

I know someone with a property that's currently worth over 1 million and the area is growing like crazy, they don't want the house anymore. BUT the house needs over 500k worth of work AND it's in a reverse mortgage. I don't know much about how to get the house with the reverse mortgage ties and my funds are not great to make the purchase. I'm not sure what to do. Any tips? Or someone willing to give serious advice so this deal doesn't go to waste?

[Account Closed]

Originally posted by @Anthony Dooley:

Do the math. The house may be worth $1M. It needs $500K in repairs. That means that if the reverse mortgage, which is a lien, is anywhere near $200K, then there is zero meat on this bone. I suggest you find another deal.

 I am unsure of your math. If the property is worth $1,000,000 and you subtract $200,000 reverse mortgage and $500,000 in rehab you still have $300,000. When you subtract 6% cost of sales that's another $60,000 leaving $240,000 gross profit, well worth doing in my book.