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Updated 25 days ago on . Most recent reply
Too many deals! Need some creative ways to stretch my capital
Ok Bigger Pockets fam. I've had tremendous success asking questions here before, so here's hoping!
The quick and dirty:
I have several projects going currently (2 flips and a new build STR.) I haven't stopped my marketing campaigns, and suddenly I have several potential deals coming at me at the same time. It's a good problem to have, I know. I'm solving some of it with partners, that's not what I'm asking.
What I'm asking:
I have a few older folks looking to sell me their homes and downsize. I'm looking for win-win solutions that will preserve my capital and get them the money they want. My best current strategy is a lease purchase agreement, where they give me the house for a low lease amount and I cash them out after I'm done remodeling. I'm also trying to find a way to "sponsor" their stay at a senior living facility for "x" years in exchange for the house. In this scenario I would place that amount in escrow and have it auto-debit monthly until the funds were depleted.
I'm certain there are good strategies people are employing. If you've heard a good podcast or read a good book I'd love a recommendation. I focus only on win-win and easily explainable strategies for these older folks and their families. The last thing I want is to come across as a slimy salesman. I'm very open with my sellers in terms of numbers. I want them to know up front what I do, what I make, and why I have to have a "lower than retail" price.
Thanks so much for any discussion. Sorry for the long post!
Most Popular Reply
Hi Matt. My wife and I have a portfolio of senior living homes and communities. I also like to find win-win scenarios for seniors looking or needing to move into some level of assisted living. Your lease purchase arrangement would be good as long as the senior or their family have enough money for assisted living care until you execute the purchase. We sometimes have seniors who need to move into assisted living immediately without much cash but they have significant equity in their home. I'm a real estate agent and my wife is the operator of our senior living business. She will allow seniors to move in with little or no money as long as I'm the agent listing their property. I list on the MLS but if the property needs updating I also have a list of flippers for these projects. I've thought about making an offers myself but I haven't so far because I don't want any appearance of taking advantage of seniors moving into our care.
I'm a bit unclear how your escrow strategy would benefit the senior. If I were in their shoes, I would prefer you pay me directly for control the money used for care and other expenses. I also don't see how it helps you if you put the funds in escrow since you won't be able to access those funds. Please explain, because if I'm missing something, perhaps I can add another strategy to my tool belt.