Pittsburgh, PA (PRWEB) March 19, 2013
Caldwell Holdings LLC of Pittsburgh, PA is set to launch a new home buying program aimed at helping senior citizens who would benefit from creating a long term income stream. The goal if this program is to help seniors and their families provide for a more comfortable financial life, as the senior transitions between independent living and some form of assisted living.
Caldwell Holdings is a Pittsburgh real estate investing firm; that deals in single family, multifamily, commercial, and raw land in Western Pennsylvania. The company purchases property in following PA Counties, Allegheny, Butler, Beaver, Lawrence, Green, Washington, Westmoreland, Indiana, Blair, and Armstrong. There is no price point that is too high or too low. Caldwell Holdings even buys homes that are in need of serious repair.
For seniors and their families there have been three traditional options for dealing with the family home. The first and least advantageous was to leave the house vacant. While some seniors are reluctant to give up the home that has given them shelter for decades, this option is terrible. The family home either sits, and rots, or it becomes a burden to a family member who doesn’t live in the home but must frequently check in and maintain the home. The most popular option is to sell the home outright. While this option does create a lump of cash, it also causes a problem for the senior who was supposed to benefit from the sale. A lump of cash is nice, but it is also a taxable event, causing a large chunk of cash to go directly to the IRS, never to be seen again. In recent times, the reverse mortgage has come to be widely acceptable across the country. The reverse mortgage is a good option for many, but it does have some down side. First off, the reverse mortgage is a loan, and as a loan, there are costs associated with getting the loan. These costs are the same as a normal mortgage. Secondly the loan balance gets larger over time. Because a reverse mortgage is a loan against the equity value of the home, the home loses more and more value as time goes on. This loan balance encumbrance can be a problem if the family wants to refinance the property at a later date; this can also be a problem if the family wants to sell the property as part an estate. In some cases the loan against the home, from the reverse mortgage can exceed the value of the home, in those cases there is no equity in the home, the family gets nothing.
The owners of Caldwell Holdings have revived an old creative financing technique to overcome the problems that arise when an elderly person needs to turn a home into a steady stream of income. The technique is a refinement of an old owner financing structure that was popular in the real estate market during the 1980’s. The way this program works, is that Caldwell Holdings contracts to buy the house at any time that is convenient for the elderly person’s family. Payments begin at any time and any rate that is agreed upon by both parties to the sales contract. The sales contract is 100% customizable. The actual document used is an option to purchase real estate contract, with allows for a maximum of flexibility in terms. In the end, the home owner gets a steady stream of income, the family of the elderly person gets piece of mind, and the family home does not fall into disrepair.
For additional details about this program, or to talk to an advisor from Caldwell Holdings; either go to the company web site http://sellyourhouseinpittsburghpa.com/ or call the 24 hour message phone number 1-724-978-0151.