All Forum Posts by: Donald Hendricks

I have 100k cash to invest, the question is, do I leverage myself into a million dollars in debt buying bread & butter post 1978 3/2/2 homes in better neighborhoods where my cash flow would be less, or do I go to the rougher part of town and buy circa 1950 craftsman bungalows from 10K to 20K, put 10k into rehab, which will rent for $500-700 a month and the place would be paid for in 5 years give or take. Some of these homes can be picked up on owner financing. The rougher area ARV would be around 40-50k, maybe a little more, depending on the area. I would not describe the area as a war zone, it certainly has seen rougher days, but the city has cracked down on a lot of the garbage that has gone on in years past. There are efforts at the city level to revitalize the area and grants are available to improve the existing businesses facades in the area. This rougher area is next to downtown where new lofts and trendy apartments are being built, well out of the price range of the clients in the rougher area. My guess is the the trendy hipsters that the downtown area is trying to attract may start buying and renovating in this area as things improve.

I am not risk adverse, and I know that the rougher area will have clients with special needs, so I am aware that it will require more of my time on the management side. My goal is to get enough cash flow to get away from my 9-5 job, which is really a 5 to 5 overnight 5 days a week job.

Any thoughts, questions, input would be greatly appreciated.

I don't agree with Ryan, nor he with me. We both just happen to be able to read the OP's first two posts, and come to the same logical conclusion. I am pretty certain at this point that it is moot, as it seems that neither the OP or the seller know what they are doing, and it is not as the OP originally stated.

Amen!

Originally posted by Ryan Richard:

Originally posted by Will Russell:

The seller receives supplemental security insurance and can only have a maximum of $1,500 in their bank account.
Without me paying in cash, the seller may not want to go through with the deal because they will lose their SSI.

From the SSA.Gov website concerning SSI:

Supplemental Security Income (SSI) is a Federal income supplement program funded by general tax revenues (not Social Security taxes):

	It is designed to help aged, blind, and disabled people, who have little or no income; and
	It provides cash to meet basic needs for food, clothing, and shelter.

Concealing this transaction by attempting to use cash funds and skirt the system so that the seller can keep their SSI benefits would be FRAUD!!!

Oh but Ryan, we are jumping to conclusions.... Or are we just responding like sensible, logical, law abiding citizens to the given information. I proclaim that it is the latter.

I do not know. A quick call to an estate planning attorney would reveal that answer quickly. As I read the SSI qualifications on their website, I don't see a "loophole" to have diddly squat in assets except a primary residence and $3,000 in burial funds.

The seller is going to end up having to sell the house and disclose the proceeds anyway. She is on SSI and presumably does not have the funds to pay for the assisted living center that she is moving into. This means that her primary residence has to be liquidated and the government will make her pay her way until she has nothing left. It really is a catch 22. If you (the seller) wants the assistance that is given to the poor and needy, then she needs to meet the threshold of poor and needy. The government will see to it.

Let me be clear, it is not real estate fraud, it is Social Security fraud. It is not akin to child labor in a third world country, as one poster would liken it to. Aiding one to hide assets is morally wrong and criminally culpable. Do not confuse my pointing this out as "putting you down". Your reputation is yours to destroy, or not. I would hate to see anyone get hooked up in the unforgiving world of the federal criminal justice system just to say they got a deal on a house. If you were completely unaware as to the reason why the seller was demanding cash to close the deal, then you would be on the high ground. Once you become aware that the seller is trying to hide assets, you become part of the conspiracy. Sometimes it is better to not ask the questions that you don't want answers to.

Child labor in whatever hell hole the bicycle is made in is likely not unlawful. I this case, the OP states he is willing to help the seller commit a crime and is knowingly intending to do so.

No there isn't, it was clearly stated by the OP that this was being done to avoid the $1500.00 limit in the sellers bank account. No assumption needed.

This is one of the big problems that our country faces, people with no morals or character. Knowingly engaging in Social Security fraud is a crime. And yes, by knowing what is going on with this transaction and going through with it anyway, is in fact engaging in Social Security fraud. You can say that you are at an arms distance and you crossed your T's & dotted your I's, but you are knowingly assisting this person in a crime against the people United States of America.

The who cares as long as I get mine at any cost attitude tears at the moral fabric of out nation daily and little by little destroys it. The fact that you come here asking people to help you engage in this crime is offensive at best. Seeing how many people here who are willing to help you in your devious deeds is surprising.