Can you invest in real estate while on disability legally???

Can you invest in real estate while on disability legally???

Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
Here’s the situation...I have a friend who was a very hard worker all of his life and has been battling a fairly severe health issue for many years while still working. It finally got to the point to where he had no choice but to leave his job and sign up for SSDI. He was approved without issue due to the legitimacy of his condition. I state this to convey that this isn’t a case of someone milking the system and wanting more. That said, he is now in a position where he can’t physically work but is going stir crazy from having so much time on his hands and is not drawing anywhere near his old salary. I am a buy and hold landlord and from what I have read, he can earn “passive income” but Social Security’s definition of “passive” seems to differ from the IRS’s. I have proposed that if we can figure out how to do this within the rules, we would form a partnership to buy and hold properties. He would handle the lead generation/marketing stuff and some other “back office” stuff and I’d be the “boots on the ground” and mange the properties. He’s a very tech-savvy guy and has excellent sales and people skills. So...I guess what I’m asking is this...is there anyone on this site that is currently on SSDI that is successfully investing (within the rules) that could give us some advice or direction on what steps we need to take to make sure that he is able to remain qualified for Medicare in case his condition worsened.
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Member since 2016 · 13k+ posts · 12k+ votes
8y

Why would he not be asking a disability handler this question. Have him contact the office and ask or look on line on the disability web page. 

He needs to go to the source then figure out how to do it. Even if it is not allowed there are always legal ways around every road block. 

The question should not be can he but rather how can he.

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  • Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
    8y
    I realize this is a potentially delicate situation so if you’d prefer to PM me that would be fine. We’re trying to do this is within the rules of a somewhat screwed up system. Any help is appreciated.!
  • Professional · Lowell, MA · Member since 2014 · 232 posts · 223 votes
    8y
    Very interesting question. To be honest, the best possible answerer is right in your friend’s history: When he applied for Disability, there was some professional who stood up for him and advocated on his behalf. It could be an attorney or a social worker. THAT is the person who should answer this question for you. Every SSDI case is different, and certain advocates will need to say certain things to get certain people their benefits in certain cases. This statement is simple objective truth— not a judgement call or evidence of “skirting, exaggeration or seeking a hand out”. The key, however, isn’t what “someone on disability can do or not do,” it’s specifically what HE can do. That will depend— quite precisely— on what was stated and accepted in his case. Seek out whoever helped before, explain the scenario and ask for that person’s advice. In lieu of that person, ask another advocate for his/her opinion, and seek to get the determination amended if necessary. Good luck.
  • Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
    8y
    Thanks for the reply Steve McGovern I will discuss this with him
  • Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
    8y
    I’m surprised that there aren’t people with so e advice on this matter
  • Member since 2016 · 13k+ posts · 12k+ votes
    8y

    Why would he not be asking a disability handler this question. Have him contact the office and ask or look on line on the disability web page. 

    He needs to go to the source then figure out how to do it. Even if it is not allowed there are always legal ways around every road block. 

    The question should not be can he but rather how can he.

  • Member since 2020 · 31 posts · 10 votes
    5y

    I'm in this exact situation right now @Brandon Hicks. I've been a surgical tech for 15 years, but have had 3 spinal fusions (the last one failed). I was finally forced to resign and apply for disability. After 4 years of denials, appeals and lawyers I finally got approved. Because my condo(that is paid off) has stairs, it's easier just to stay at my parents house. I would love to start out by turning my condo into an investment property, but I'm not sure how to go about it without the risk of losing my Medicare/SSD. Just wondering if you had an update on your friends situation or any tips you might've come across since this originally post. Thanks!

  • Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
    5y

    @Amy Scarborough unfortunately no. We didn’t see away that he felt comfortable with to move forward.

  • Member since 2020 · 31 posts · 10 votes
    5y

    Awww, I hate that. Being in our Birmingham market it's almost a shame not to be able to jump in it.

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