I have a client who has an adult child, that has some issues, and they want to make sure that they are in essence providing long term care.

I recommended that they buy a six flat where they can earn enough from the 5 units so their child will always have a place to live, rent free.

I explained to one of the siblings the concept game plan.

Start with a Finance Company.  Load the deposit money into this company.

The Finance Company loans the money to the LLC that owns the building, for the deposit.

The LLC gets a mortgage on the property for the balance, the Finance company records the lien from the amount owed.  This protects the owners from any lawsuit losses.  The mortgages will always have first place against other creditors.

Make sure that the 5 rents, will cover the mortgage, taxes and maintenance of the building.

If successful, there should be rent creep and the Finance Company is repaid and start the process with another building.

The light bulb turned on.  The sibling is pushing to get this started.

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