Help Please!

10 Replies

Working on potentially our first investment deal and need some advice. My wife's grandmother owns a house outright. She is very ill and is currently in a nursing home. 2 of her sons who are in their 50's still live at home and feel They are the owners even tho Grandma is the ONLY one on title. We have approached them about buying their home cash so that proceeds can go and take care of grandma while she is STILL alive. I told my wife that probably the next step to take would be get ALL sibblings on board(and they are) and get together with the attorney. There are several sibblings but One seems to be a thorn and its one that still feels HE owns the house. We have been as nice as possible with him as we dont want this to get ugly..........Any advice on this would be great :)

If the owner is still lucid and wants to sell then it's pretty straight forward. Are one of the siblings currently power of attorney? If so, I would approach them. Depending on the situation having one party who is not on board could potentially derail a deal. 

Buy the stubborn sibling out. Offer him some part of your profit or pay his security deposit to move into an apartment; something like that. Is he employed? If so, encourage him get into the RE game himself. He may just be stubborn out of jealousy. He thinks that you are about to become RICH and leave him in your dust.

Make him an offer that he can't refuse 😊

Check with your Attorney about what will happen if the mom stays in the nursing home for an extended period, the nursing home has rights for payment that could come from the house later, they have several years. This could be a good negotiating tool with this thorn. If this is correct in your area he could lose his interest anyway if the cost of the nursing home gets bigger than what she can pay, or possibly if she passes. He then would want the money instead of taking a chance. Hope this helps, laws may be different there so please check with a good Attorney before taking this route. It is just an opinion, I do not know your laws or all the circumstances. Good luck!

@Esaul Viramontes Like Lisa mentioned, talk with the power of attorney.  Also, see if the profits will have to automatically go to the nursing home.

Originally posted by @Shara Carlton :

Buy the stubborn sibling out. Offer him some part of your profit or pay his security deposit to move into an apartment; something like that. Is he employed? If so, encourage him get into the RE game himself. He may just be stubborn out of jealousy. He thinks that you are about to become RICH and leave him in your dust.

Make him an offer that he can't refuse 😊

 We have. He feels hes the owner because he has been living there the whole time....even though all sibblings are on the will for the home. However, the other day he met with a contractor that told him serious work needed to be done and I think our Offer is sounding more attractive now.

Originally posted by @Account Closed :

Check with your Attorney about what will happen if the mom stays in the nursing home for an extended period, the nursing home has rights for payment that could come from the house later, they have several years. This could be a good negotiating tool with this thorn. If this is correct in your area he could lose his interest anyway if the cost of the nursing home gets bigger than what she can pay, or possibly if she passes. He then would want the money instead of taking a chance. Hope this helps, laws may be different there so please check with a good Attorney before taking this route. It is just an opinion, I do not know your laws or all the circumstances. Good luck!

 Just found out recently that NO attorney is assigned yet, but rather a case worker. Also found out today that the state wants to put a lien on the property to pay for medical expenses.....This is why Im turning for help...dont know really where to start...BUT I think our offer on the table is starting to appeal to everyone EVEN the stubborn brother

Originally posted by @Lisa Kohl :

If the owner is still lucid and wants to sell then it's pretty straight forward. Are one of the siblings currently power of attorney? If so, I would approach them. Depending on the situation having one party who is not on board could potentially derail a deal. 

 She unfortunately is showing early stages of dementia.

I would approach this differantly than most. I wouldnt make a cash offer. 

My offer would be a structured purchase or terms or whatever verbage you are comfortable with. I would offer to purchase the house for full market value but paid in monthly installments, that way grandma gets the income while she lives, and the remainder of the equity goes to her heirs.  This should make the thorn happy and give grandma an income that will last for her entire life, as well as a legacy to pass onto her children.

Any RE attorney can set this sort of purchase up for you.  The legal documents will chage state to state but the concept is what you need to explain.

I hope that helps

Josh

I agree with Josh there is no reason to pay cash when she needs the money only monthly for nursing home expenses. I would just verify with an Attorney if she passes how long the nursing home has, even after closing, to place a lien on it! Just a thought!

Originally posted by @Josh Caldwell :

I would approach this differantly than most. I wouldnt make a cash offer. 

My offer would be a structured purchase or terms or whatever verbage you are comfortable with. I would offer to purchase the house for full market value but paid in monthly installments, that way grandma gets the income while she lives, and the remainder of the equity goes to her heirs.  This should make the thorn happy and give grandma an income that will last for her entire life, as well as a legacy to pass onto her children.

Any RE attorney can set this sort of purchase up for you.  The legal documents will chage state to state but the concept is what you need to explain.

I hope that helps

Josh

 Execellent advice. Couldnt sleep much last night thinking about the best way to put this in motion haha. Thanks a Million! I will post again once I have more updates :)

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