15. Save $500-$1,000 per month – Use a lumpsum from the (grand)parents/family to cover expensive short-term debt (like credit card debt) in order for a 10-year free rent/retirement or for a shared car lease/car purchase
The idea is simple. Suppose your (grand)parents want to retire but cannot find a place to stay (thus find a cheap rental). You purchase (with a mortgage) a foreclosed retirement home in a sunshine state and they pay you a $50,000 lump sum in return for 10-years rent-free stay.
Then the $50,000 covers:
1. It can cover (partly) your expensive credit card debt (costing you $400-$800 per month, you save this money to pay for mortgage payments). Your credit score also goes up instantly.
2. It can cover the first 4-5 years worth of mortgage payments. Or a 30% lumpsum/down payment on the mortgage, reducing your monthly mortgage payments by 30%. It could be that you were denied the mortgage, but with the $50,000 lumpsum, you can get it after all.
3. It can cover your remaining (current, thus an existing property) mortgage payments, like you still need $50,000 to close your existing mortgage, you save $1,000+ per month of existing mortgage payments, so you can pay for the new mortgage.
4. Instead of mortgaging a new property, you could also close your current mortgage with it and have them live in with you.
5. It can cover your current mortgage, you rent out your property and you live together in a newly mortgaged retirement property in a sunshine state.
6. You could collect the $50,000 to cover your debt, and you mortgage a sunshine property for them solely, whereby they pay the mortgage as rental payments to you.
Their $50,000 solves their problem for retirement, because:
1. They cannot rent a place for $400 per month (for 10 years)
2. Neither you find a retirement home for less than $30,000 per year, they pay $5,000 per year in our case.
3. At the age of 60+, you cannot get a mortgage anymore.
4. They save money for staying with you, or you take care of them during retirement (like for driving around, shopping, etc)
5. With $50,000, the inheritance-tax-cost diminishes. Make sure the $50,000 that they give you is tax-optimized (either as gift or is unknown, not reported, or part of a mortgage deal, like mortgage down payment, etc)
6. After all, $50,000 on the bank yields less than $100 per month of interest, and they can help their (grand)children with it and solve their retirement problem.
7. When (grand)parents live together with (grand)children, their budgets are optimized and they save an additional $1,000 per month.
8. They can rent out their existing property (like for $1,000 per month to family) by moving in with you or in the newly mortgaged sunshine state retirement property, so they will recover each year $12,000.
9. Instead of them paying $30,000+ per year for a retirement home to strangers or pay rent to strangers (like $1,000 per month) for a small apartment, the money stays within the family and they can get a nice (sunshine) place.
10. Even when staying in the US during retirement, with the $50,000, they could retire by 10 years worth of cheap rent while their (low) retirement benefits covers their monthly ongoing costs, because your share other costs with them, or they rent out their former property.
You can also, to further convince your (grand)parents, optimize their finances and personal/household budget by $500-1,000 per month (with all the ideas outlined on this website) and thus, more likely, convince them to give you a lump sum.
Or implemented as a lumpsum for a car lease/finance. Your family (like (grand)parents or you) wants to buy an expensive, or rather luxurious car like Lexus, Benz, Corvette, then: they pay $20,000 to you, you cover with that $600+ per month of credit card debt payments, in return, you take the $600+ per month personal car lease. Your credit card debt is cleared and your credit score goes up. You can enjoy a more luxurious car. Your insurance may be somewhat higher including fuel costs, however, for the next 5 years you can enjoy this purchase too. Also, you could close your current car (finance/lease) so the increase of cost per month is limited.
