Paying seller over 2-3 years (so he won't lose his food stamps)
Firstly, I'm not asking for legal advice, so any replies don't need a disclaimer :)
A seller I'm buying a house from is concerned about becoming ineligible for food stamps and Medicaid when I buy the second property on his land due to receipt of a large sum of cash.
I'm paying 30K to him and 30K to his sister. He asked if there was a way I could pay him $1000 a month over an extended period instead of all upfront so he could keep his benefits. Can an uncomplicated contract be written up for an arrangement like this?
Originally posted by @Pat L.:
Originally posted by @Ryan R.:My investor partner has a rental that Section 8 subsidizes ($65/month) towards the $650/mo rent for a single woman 'struggling' in a mediocre job.
She got fired for theft & now unemployed (& awaiting a trial) Section 8 is paying my partner $750/month because she also took in her aging mother ?????
=======================================================================Is section 8 paying her $65.00 NOW? She has no income Now
Is section
8 paying her $750 a month or is Public assistance paying her $750.?? Either way her mother has to live somewhere? Sounds like $750 might be for room and board.
Originally posted by @Pat L.:Originally posted by @Ryan R.:My investor partner has a rental that Section 8 subsidizes ($65/month) towards the $650/mo rent for a single woman 'struggling' in a mediocre job.
She got fired for theft & now unemployed (& awaiting a trial) Section 8 is paying my partner $750/month because she also took in her aging mother ?????
=======================================================================IiIs section 8 paying your partner $65.00 NOW? She has no income Now
Is section 8 paying your partner $750 a month or is Public assistance paying her $750.?? Either way her mother has to live somewhere? Sounds like $750 might be for room and board. Her mother hasn't stolen anything so this is not extra money we are paying . We would be paying this $750, or more, for her mother because it seems her mother is entiteled to it .
I don't know about this one.... Would it be considered fraud? What if later on it is discovered that this deal was made specificlly to "lower his income level" so that he doesn't loose his benefits. Would there be any criminal or civil charges? Jail time? I'd be very careful here. I understand he is not in the best situation and you are trying to help him out, but I would never put myself in a situation that could have the chance to harm myself. I'd definitely talk to an attorney but I would think you can structure a deal any way you want as long as both parties agree. I've seen people swap "pink slips" for cars straight up, even when one car is worth significantly more than the other. No other cash is involved. It just depends on peoples needs at the time.
I think also people might be confusing Social Security, with Supplemental Security Income (SSI). Both programs are administred by the SSA but they are different programs. Land would not disqualify him from getting his montly Social Security payment, however SSI is a different program and has different sets of rules. Keep in mind it's "SUPPLEMENTAL" income.
Real estate investment is tax-advantaged to a frankly absurd degree. Every one of us is "freeloading."