Creative Solution For Older Seller Needed

[Ryan L.]

I’m am getting ready to close on a 4 unit but also would like to present a creative solution to the seller for his primary residence. Any advice?

The seller is in his late 80’s and not in very good health. Not married, no kids, all property held is in his name solely (no pod or joint ownership) He doesn’t want to move now but he knows he doesn’t have much time on earth left. What kind of creative deal could I offer where I could purchase the house now so he would be avoiding probate but allow him to finish out his days in the house? What kind of creative deal would you structure snd how would you present it? His sister has been helping with the 4 unit transaction and she would probably welcome some solutions for his primary residence.

[Dave Foster]

@Ryan L., Purchase it now so he can take the cash tax free. And give him a life estate lease on the property as part of the consideration. You could actually give him a market or better than market price for it which would increase your basis and be absorbed in his exemption. Then the purchase of the life estate or prepaid rent or however you choose to structure it washes out to you as good NOI.

But be careful - folks can surprise you.  "Not much time left" could mean years!