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| Program Overview |
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| How Does The Program Work? |
In order to best utilize the services that CFS offers, it will be necessary for you to consult with your attorney who will design a Medicaid estate plan for your loved one in need of nursing home care and will also be responsible for applying and qualifying your relative for Medicaid benefits. After you and your attorney agree on the amount to be invested in income producing real estate, CFS will select an appropriate property to match your budget. Through a series of documents that your attorney will approve, CFS will sell the investor an undivided ownership interest in one or more properties that will adhere to the estate plan. CFS will then lease the property from the investor at a guaranteed rental rate. The lease will be an absolute "Triple Net" lease; that is, the investor will have none of the risks or worries normally associated with rental property ownership because CFS will:
- Be responsible for all taxes and insurance
- Be responsible for all occupant concerns
- Be responsible for all maintenance and repair issues
- Pay the investor a guaranteed income every month whether or not the property is occupied
- Supervise the tenant's care of the property to ensure that the property is maintained in excellent condition
When the time to liquidate the investment comes, CFS will repurchase the property at a predetermined price within six months of CFS' receipt of written notice of the investor's death under the guaranteed "buy-back" provision.
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| Guaranteed Buy-Back |
CFS offers two investment buy-back options for those investing in residential real estate. With the first option, the Buyback price will depend on the length of time the investor holds the property interest. If the investor owns the property for at least five years, the buy-back price will be 100% of the purchase price. If the investor elects to sell the interest back to CFS before the end of five years, the buy-back price will be discounted as follows:
During year 1: 85% of the Purchase Price
During year 2: 88% of the Purchase Price
During year 3: 91% of the Purchase Price
During year 4: 94% of the Purchase Price
During year 5: 97% of the Purchase Price
After year 5: 100% of the Purchase Price
The second option, for those who are interested in obtaining a guaranteed return regardless of how long their investment remains with CFS, provides for a buyback price of 92% of the original investment amount at any time after the first year.
For those who invest in commercial real estate, they buy-back rate is determined on an individual basis and is affected by the amount and length of the investment. CFS will be happy to discuss the terms of such a buy-back with you and your attorney.
Please note that regardless of which option is chosen, funds invested in CFS properties must remain with CFS until the death of the investor.
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| CFS' Rental Property Criteria |
All CFS properties are carefully selected, professionally managed, and expertly maintained. In an effort to ensure that our clients are offered sound investment options, CFS is diligent in the selection of its properties and all must meet the following criteria:
- All houses must be in excellent condition at the time of purchase
- All houses are professionally managed and receive regularly scheduled maintenance
- All houses must pass a rigorous inspection by an ASHI certified inspector
- All houses must have a current survey and full title insurance
- All houses must be located in safe, established, family oriented neighborhoods and in excellent school systems
Examples of Residential Investment Properties
Although CFS has a few "starter homes" for new families, most of the properties are targeted for young executive families who are relocating to Indianapolis and to young professionals on mobile career tracks. As a general rule, the prices of three bedroom houses range from $125,000 to $150,000 and four bedroom executive homes range from $150,000 to $275,000.
For those with $250,000 or more to invest, CFS is also offering expanding selection of
commercial investment opportunities. These office and retail properties enjoy high occupancy rates with creditworthy tenants and generate very stable rental incomes.
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