Privately funded Reverse mortgage?

[Jennifer Anderson]

Hello All,

I have a situation. Not sure how to approach this and any advice/suggestions would be appreciated.

I have a friend who asked me about a reverse mortgage. He is 55, his wife is 67 and disabled. She owns their home free and clear. They are both in poor/bad health and need a lump sum to pursue some experimental treatments.

He is anxious to get this money. Too anxious to wait for a traditional reverse mortgage, HELOC, etc. I don't think their income can afford much more than the monthly bills, definitely not a large loan payment.

They are looking to get $70-100,000. The house is in good repair but a basic small 2br in a desirable neighborhood, valued at $420,000

I'll just get to the point-is there any way can I make money on this and help them out at the same time? I do have an LLC and a contact for hard money. I'd be open to any and all traditional or creative ideas.

Thank you in advance for your feedback!

[Chris Davidson]

@Jennifer Anderson. Sounds like they are house rich and cash poor. Will they sell it to you with your downpayment being the 70-100k they need below market, and make your payments similar to what their rent payments would be + or - what ever it takes to make the deal work. 

Take title and deed as you get tax benefits over just having a lien, and don't have to worry about the estate paying off or not paying off the lien and/or foreclosure.

Want to get real creative work it up like a commercial lease where they are going to pay taxes, insurance, maintenance, and repairs.

Best of luck!