Buying from an elderly lady who wants to sell before she dies

[Barry Je]

I found a great deal with a unique situation and wanted to get your opinions and ideas on how to proceed.

The owner is very elderly and states that she would like to sell her home, but she wants to live there until she dies.  She's selling it for a good 30% less than what it's worth.  In our market, things are crazy, and foreign investors are buying up houses in this price change.  Keeping it off market would work in my favor.

The house is too large, probably wouldn't work as a rental.  It could be a flip, but I can't afford the holding costs and getting contractors is tough.  We need a house to live in as our rental is expiring so my plan is to make it our home since it's already in pretty good shape.  I don't mind waiting 6 months to a year (I don't intend to sound cruel, sorry).

She is VERY old and doesn't feel like she'll live more than a year.  Statistically, probably true.  How would you guys structure the deal so I can lock in this house at a great price but limit risks?  ie let's say she magically does live to 110 i don't want to be waiting around several years.  

My idea was a purchase and lease-back for 6 months at a time up to 1 year.  Other ideas?

Thank you all!

[Jay Hinrichs]

this deal needs the seller to be represented by family and or council or both.  

heirs get  wiff that their inheritance got sold for 30% under market in Seattle area thats big dough you are setting yourself up for potential liablity big time.

now that all said .. I ALWAYS  get them to hire and attorney and have the their attorney write the contract.. and or family.. plus title company probably wont close it without knowing the elder is represented.

the other thing I have done and i am starting to build on these now.. is I did a life estate a little different.

We paid market for condition and had her attorney do a life estate.. we paid cash she lived 11 years.. but it still working out oK for us. even though it took 100k and 2.5 years to get it split but we are now getting to build 3 homes.. Lady was thrilled she only had to pay her utls and lived there all that time with no worry of losing it.