Deal of a lifetime - Bought from ailing elderly neighbor

[Terri-Leigh H.]

Investment Info:

Single-family residence buy & hold investment in Cape Coral.

Purchase price: $60,000
Cash invested: $60,000

2/2 across from canal in desirable neighborhood - Bought from health failing elderly neighbor... Made her the offer of a lifetime to live there for $1.00 per month.

What made you interested in investing in this type of deal?

Three things:
- HUGE equity potential
- We get to significantly improve her quality of life at home and financially
- We get to take care of the property and any eye sore issues, thus benefitting our STR next-door!

How did you find this deal and how did you negotiate it?

We met when we bought the house next door in '22. We adopted her during a 6 week remodel... We came home to Colorado, only to go through the hurricane, she was alone during it and we worked to make sure she was safe and ok. We went back down for a couple weeks this spring to enjoy our property... She went into heart failure... We took care of her, helped her get her affairs in order, saw that she was NOT in a good way health, financial etc... We offered to buy for $60k & she could rent for $1.00

How did you finance this deal?

Cash.

How did you add value to the deal?

We have done a few health and safety updates, fixed hurricane damage etc. About $2k worth.

What was the outcome?

The property was appraised at $290k... Instant equity. She is now happy spending her social security on meds, hobbies and healthy food instead of constantly repairing her home. We gained a grandma:)

Lessons learned? Challenges?

Take the chance. Lead with the head but follow the heart!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, we paid our realtor $1800.00 to facilitate the deal and to help make sure all lease agreements and sale agreements were legit and mutually beneficial.

[Account Closed]

Quote from @Terri-Leigh H.:

Investment Info:

Single-family residence buy & hold investment in Cape Coral.

Purchase price: $60,000
Cash invested: $60,000

2/2 across from canal in desirable neighborhood - Bought from health failing elderly neighbor... Made her the offer of a lifetime to live there for $1.00 per month.

What made you interested in investing in this type of deal?

Three things:
- HUGE equity potential
- We get to significantly improve her quality of life at home and financially
- We get to take care of the property and any eye sore issues, thus benefitting our STR next-door!

How did you find this deal and how did you negotiate it?

We met when we bought the house next door in '22. We adopted her during a 6 week remodel... We came home to Colorado, only to go through the hurricane, she was alone during it and we worked to make sure she was safe and ok. We went back down for a couple weeks this spring to enjoy our property... She went into heart failure... We took care of her, helped her get her affairs in order, saw that she was NOT in a good way health, financial etc... We offered to buy for $60k & she could rent for $1.00

How did you finance this deal?

Cash.

How did you add value to the deal?

We have done a few health and safety updates, fixed hurricane damage etc. About $2k worth.

What was the outcome?

The property was appraised at $290k... Instant equity. She is now happy spending her social security on meds, hobbies and healthy food instead of constantly repairing her home. We gained a grandma:)

Lessons learned? Challenges?

Take the chance. Lead with the head but follow the heart!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, we paid our realtor $1800.00 to facilitate the deal and to help make sure all lease agreements and sale agreements were legit and mutually beneficial.

Wow! You gave an ailing woman $60,000 for her house valued at $290,000. You must be something special.

 It's interesting that Florida law anticipates such "deals"
"Florida Statute 825.102 as the abuse, neglect, or aggravation of an elder or disabled adult. Elder abuse could include sexual exploitation or financial exploitation."

Elder abuse is a crime in Florida. If the victim suffers no physical pain or permanent deformity, the crime is a third-degree felony.

But don't worry, 

Abuse of an older person has the following penalties:

• For a third-degree crime, the maximum sentence is only five years in jail. instead of 
• For a first-degree crime, the sentence may be up to thirty years.

I would not post this publicly for obvious reasons if I were you.