Another Method Of Obtaining Real Estate
It is with some trepidation that I write this as I am a little nervous that some of you may utilize it in a harmful manner. But remember this I am very old so if you missuse this information when you get to the River Styx there is no way you are getting across and if you do, you can forget the 70 virgins, they are all taken.
THE LIFE ESTATE
Rather then lay this on you like a course in Law School, let me make it a little more absorbable, here is a for instance.
A foreclosure notice (NOD) is posted on a rather large house in the slumy part of Los Angeles. I run on it, knock on the door and this drunk lurches out as he opens the door. Seems he is the owner rather elderly and a practicing alkaholic. Big time. He has a small pension about 200 a month,he put a $20,000 Trust Deed on his house the lender of which is a "Snatch Merchant" given to making high interest loans which default quickley and he then snatches the properties.
I check the place out. 7 rental rooms and all full. The problem is very simple the Owner is a drunk, needs help and will loose the property within the next 60 days.
I sit him down and spend the day teaching him the facts of life. He is a drunk,he will loose the house and be on the streets, die in some quiet alley and thats it. He needs a keeper and I am that person. I will manage his drunken affairs, keep him out of foreclosure. Just a few legal matters. He deeds me the property. I record the ****Must Reach Senior Investor status before posting URL's*** cure the foreclosure, I give him a Life Estate in the property. He gets to live there the rest of his life. At the end of this drunken life. The property is mine. I will bury him. promising to put a bottle in each hand.
Of course as the now owner I borrow $50,000 on the property at proper bank interest, pay off the loan now in foreclosure. Move in a housekeeper to manage the place, now expand the tenancy to furnish two meals a day. Breakfast at 7:30 and Dinner at 7:00. The rents of course go up, but with the meals and a good housekeeper its a pretty good deal for working class upper mobile persons. My drunken ex owner lives there and I take his pension and dole it out to him on a weekly basis. He converts to Pot and stops the heavy drinking. The establishment is on an even keel. John now one of my friends lives for two more years. Yes it is true I had talked to his doctor who informed me he had a liver that was about to turn to stone and his life expectancy was about six months but with a little care maybe two years.
It was an interesting time, I even had dinner there on several occasions and even took John out to the track to look at the horse's. Upon his death I sold the house for $175,000 paid off the $50,000 and my total take was about $150,000.
That is the Life Estate. A very simple document, modifies title but slightly. I must admit I was a bit cheap at the end the two bottles of booze in Johns hands at the time of internment were really cheap not his usual blended Scotch.
Now remember, when you hit the River Stix, a Dracma won't do it, if you have missused THE LAND CONTRACT.
Cheers Lucius
very entertaining
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Lufos,
Glad to meet you.
I enjoy your posts written with such style only someone living in Hollywood can give them the movie production style you do.
I remember my younger days visiting and partying in your area. When I was involved in co-ownership of a television station in Las Vegas we had a host of a celebrity program by the name of Ralph Pearl. I would come into the station and and from time to time I would meet with Frank Sinatra, Dean Martin, Jerry Lewis, Buddy Hackett and the list goes on. Enjoyable times and memories as I was invited to many a Hollywood party in those days.
If nothing else when in Hollywood, I would have lunch on Rodeo Drive at one of the garden cafes, watch the Rolls and Mercedes drive by with definate Hollywood looking people driving by, if there is such a thing at least I thought so.
I had a close friend who lived in the hills, the roman column pillars in front of his house, with those little lights surrounding the ceilings of every room, then adjourning to his movie theatre in one of the rooms. He imported the Godzilla movies from Japan and was part of the Hertz family. They should have put his liver in the Smithstonian or it least if they set it on fire and used it a a remake of the burning of Atlanta from Gone With The Wind.
I did not mean to get off track here it is just you brought back some fond memories.
Take care and keep posting,
John $Cash$ Locke
your post is hilarious. good practical lesson. Keep posting.
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You should post this to article status!