A friend of mines told me last week that his dad has to go into a medical home and that he needs to sell his dads house. The home was built in 1905 and has not been updated or had any upgrades since. It’s in pretty bad shape. To totally renovate it with the latest upgrades and add a bath for a bed suite it will take about $70k. Arv in the area is $155,000.
Medicaid requires the liquidation of most people assets before being admitted into such a facility. My friend told me they do not care what price the house sells for, because any monies produced from the sale will go to the medical home.
I called another friend of mines to place it under contract; I did not want to be directly tied to this transaction because of the circumstances and did not want to list the property. I knew the acquisition price was going to have to be super low due to the condition, it’s a full rehab, roof, hvac, upgrade to 200 Amp service and rewire, siding and windows.
My friend that does wholesale deals negotiated a price of $10k and ratified the contract. A week later he found a buyer and assigned his contractual interest for $9k. Total sale price is $19,000. Its scheduled to close in 17 days.
Lets see how much he pays my broker in the form of a bonus for me. Not that he is obligated to pay my broker anything. We will see......
*Disclaimer I am not an attorney nor am I offering any professional advice, just some thoughts I am sharing*
Gulf War Veteran