Buying a property that isn't for sale.

Buying & Selling Real Estate
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Buying a property that isn't for sale.

Cailan Knight
Member since 2009 · 6 posts · 1 vote

Hello, the 6plex that my girlfriend lives in is poorly managed and not fully tenanted. The owner's husband died a year ago and from what I've heard she has been overwhelmed since then. The owner currently lives in the basement unit because she couldn't stand to stay in the neighboring house she owns due to her husband passing away inside. The plex is in good condition and all big, 3 bedroom units in a great area of town.

My question is, how should I go about making an offer on this property for under market value? I have a feeling she would be motivated to sell but hasn't listed the property because she lives in the basement unit and is also an immigrant with poor communication skills and elderly.

Do you have tips for making an offer or securing this deal? Someone with experience who could offer some assistance, it would be appreciated.

Thank You

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Celina De La Torre
Salt Lake City, UT · Member since 2014 · 23 posts · 7 votes
12y

@Cailan Knight ,

So my mom always told me, "He who serves best, gains the most".

If you really want to make an impression on this lady who needs help, ask her what you can do to help her get her units back on track. Donate some of your time for a better cause. Then, as you work with her, mention that you are an investor and if she ever wanted to sell that you would be happy to help her with that as well. And maybe even help her find a cute little home where she would be more comfortable and not constantly reminded of her husbands death bed.

I can attest to the power of a helping hand. More doors have opened up for me in my life through helping others than in any other form. Just a suggestion :) Good luck, sir!

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  • Account Closed
    Investor · Honolulu, HI · Member since 2013 · 3k+ posts · 1k+ votes
    12y

    So you want to take advantage of a greiving elderly immigrant woman with poor communication skills and need our help.  Has she started dating?  You look OK if that's you on the right.  Hell, she may even go for the guy on the left if he has some swagger.  Ask her out and see how it goes.  LOL

    0Reply
  • Cailan Knight
    OP
    Member since 2009 · 6 posts · 1 vote
    12y

    No, I want to make an offer on a property where the owner isn't capable of managing it anymore. 

    Thanks for the positive feedback. Very helpful.

    0Reply
  • Account Closed
    Investor · Honolulu, HI · Member since 2013 · 3k+ posts · 1k+ votes
    12y

    Funny that you think she's not capable of managing the property.  There's another thread where a whippersnapper wants to pick up a property on the cheap cause the old folks aren't managing it to his standards.  Seems like people are identifying a new niche,  Plunder the Boomers.

    If I can get Betty White I'd like to produce a show ala Chris Hanson.  There you are sipping tea on fine china and Betty comes in and asks, "Did you come with champagne and contracts in your car?"  Ha ha.

    0Reply
  • Aaron J Sawyer
    Real Estate Investor · Boulder, CO · Member since 2014 · 6 posts · 5 votes
    12y

    Making a respectable offer avoiding any pretense of sounding condescending seems reasonable to me - especially if the evidence that the management of the property has shown that there is a severe deficit. 

    0Reply
  • Ron Boling
    Fall River, MA · Member since 2013 · 50 posts · 30 votes
    12y

    I'm a complete newbie myself but I think that perhaps your first step would be to find out if she even has any desire to sell. It could be that it is her sole source of income and she can't sell because of her finances. If communication is an issue find someone that can communicate with her, like her children or other immigrants from her country that are in the area, and communicate through them. Make absolutely sure that they understand what you are trying to ask first before they put the question to her. Maybe ask how much it would take for her to sell it. That would at least get the conversation started. Don't push her for an answer in the first conversation. Just let her know you are interested and then let her mull over and get used the idea for a while.

    BP podcast number 77 had some good examples for negotiation and while I didn't like some of his conversational techmiques, Michael Quarles obviously knows what he is talking about.

    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    12y

    I would not hesitate to make an offer.  If she is overwhelmed with everything then you can be a solution to the problem. This might give her peace of mind and give you a great deal on the property. Buying below market is not always a win-lose situation.  Offering the seller a solution to their problem while giving you the ability to make a good investment can be a win-win situation. Don't hesitate!

    0Reply
  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    12y

    Make the offer with a stipulation of her living there with her holding the financing, assuming its free & clear.

    If you can purchase it at a very 'reasonable' price you could afford a higher enticing interest rate so she has an income stream not subject to the need to manage/maintain the property & collect rents.

    We had a nice 7 acre property (with a run down home) go similar to this. The owner stipulated that the purchase price was $140,000 (one acre lots in the area go for $47,000), but his very elderly mother got to live there until the end. Everyone balked at the idea but a Russian couple paid cash & scored a nice piece of property & within 3.5 years the elderly lady passed on. They have since gutted the home & the barns for their kids.

    Good luck.

    0Reply
  • Kathleen Leary
    Princeton, KS · Member since 2014 · 357 posts · 169 votes
    12y

    If she still owns the house where she previously lived, maybe you could investigate a double deal with both properties? Then sell off the SFR & let her continue to live in the multi.

    Make sure you present your offer in terms of how you can help her in a difficult situation & be patient. She's had a lot of changes & it will most likely take some time for her to make such a major decision.

    1Reply
  • Celina De La Torre
    Salt Lake City, UT · Member since 2014 · 23 posts · 7 votes
    12y

    @Cailan Knight ,

    So my mom always told me, "He who serves best, gains the most".

    If you really want to make an impression on this lady who needs help, ask her what you can do to help her get her units back on track. Donate some of your time for a better cause. Then, as you work with her, mention that you are an investor and if she ever wanted to sell that you would be happy to help her with that as well. And maybe even help her find a cute little home where she would be more comfortable and not constantly reminded of her husbands death bed.

    I can attest to the power of a helping hand. More doors have opened up for me in my life through helping others than in any other form. Just a suggestion :) Good luck, sir!

    2Reply
  • Ron Boling
    Fall River, MA · Member since 2013 · 50 posts · 30 votes
    12y

    @Cailan Knight 

    I'm curious if you have an update to this.

    0Reply
  • Brian P.
    Wholesaler · Salt Lake City, UT · Member since 2009 · 1k+ posts · 401 votes
    12y

    Me too, any update? I guess it is because I am old too, but in these cases I get everything going right for her. When I know that everything is fine I then talk about the future. In one case the widow wanted to move in with friends and people closer to her age and spoke her native language. Found the solution. She was happy, I felt great and we became partners in her properties.

    When I was a young investor I learned not to make other peoples problems my own but at about middle age I started making an exception to that rule for the elderly, and have never regretted it. Doesn't mean all elderly are worth helping or need help, there are the unworthy among them, but most deserve some real help in situations where they are really just victims.

    1Reply
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