So here is a fun one for you. I am looking into a 4-plex deal in Pennsylvania (a market I know a lot about) that is currently a rental property but after running a cash flow analysis on it, it has a lot of potential for higher cash flow as the current rental rates are well below market value. So why is this? The owner is 90 and has a few family businesses that are stables in the community and puts all his attention into those and does not really have the interest in dealing with everything that comes with tenants, renovation, and what it would take to bring the property up to market value. Essentially he is over extended and has everything with the property on auto pilot with the property. The family is in the same boat, their businesses are their primary assets so they don't really care about the property that much.
So my question is to land this deal, what advice and strategies would you use to get a 90 year old business owner to sell his rental property to you?
thanks in advanced and feel free to private message regarding this deal as well.
Assuming he actually is open to selling, your offer should show him that you're providing value to him by freeing up his time (which sounds like he doesn't have enough of). I'd also toss in that you want to take a more active role in the community and that him selling this to you give you that chance.
Sounds to me like this guy is going to value time and sense of community over dollars and cents...
sales agreement. He'll be making cash on the interest and never have a phone call on the property.
That's hard to say. I know a guy that is 93 years old, has about 40 properties (just in my area and hundreds throughout the country) and thousands of acres of land. His business holdings in the community are notable. I try reaching out every couple months. I let him know that now is the time to sell something off and the market was ready. All he says is "Find me some more land, I want it in no less than 100 acre chunks, I just feel like it is going to boom around here".
While I don't disagree, some people just are always buyers and never sellers. So find out if he even has an interest in selling first. if he doesn't want to sell not much you can do but make sure your business card is on the desk.
love the idea of using the fact that I want to play a more active role in the community which I do as it is my hometown.
@Mike Cumbie Based on a conversation we have had the interest is there I just need to give some additional motivation for selling, which may be just a matter of using the right kind of financing, which is the step I am currently at. I have a unique option to use an FHA , going through a private lender, or partner. If you are in NY and have any interest in hearing the details on this deal feel free to send a private message.
Thanks all negotiation is always a fun topic to discuss.