I am a total rookie and new to real estate investing, any and all advice is greatly appreciated. I have been researching in areas I am looking to invest in and found house that is abandoned, in really bad shape, so I figured contact the owner and maybe they would sell it to me cheap and I can fix and resell. As I did more research on the property I found out it had belonged to two very elderly people who have both passed away. Next I tried to find children, I was able to locate one in another state and he is willing to sell me the property. He told me there are 3 siblings total including him, and he has no contact with or has any contact information what soever of the other 2 siblings. I am going to try to locate them, but here is my question, how does this work? Is this worth pursuing? Do all 3 siblings need to agree to sell me the property? Can I make a deal with this one sibling only? (also upon researching I found out there is a reverse mortgage on this property and it is in foreclosure too).
Again any information/advice is greatly appreciated.
You need to have all titleholders agree to any sale. Unless you can locate them all and they are all onboard - this is a lost cause.
Heirs... Unless the house was left to one of them in a will, and they're now on the deed, you'll have to deal with all the siblings. The reverse mortgage might kill the deal, I just don't know.
Go to the various county offices, and look up who is on the deed.
I've been trying for an "heir house" now for almost 2 years. It *could* still happen, but I'm not holding my breath... Good luck!
To be honest, I would have moved on from the property at "really bad shape". In my experience with residential, the more work that is needed beyond cosmetic the lower the profit at the end, which when coupled with the time required, ends up being a much worse hourly return on your time and money.
With the added difficulty of the heirs not being in communication with each other and the rest of the hair on the deal, I would move on.
When you first get started, I think most people don't respect the value of their time enough and haven't seen how high a percentage of deals apart. I think you would be much better served trying to find another property unless you're going to make a million bucks here.
Reverse mortgages have some pretty strict regulations that will be complicated for the average person to understand (like the heirs) so there is a lot going against you. There are also requirements for what the home can be sold for providing the heirs don't have the capital to pay off the balance so your discount may not exist.
Live to fight another day.
Putting the heir mess aside, the fact that it is a reverse mtg and likely underwater, says stop, and move on. With a RM the property must sell for 95% of a current fha appraisal.....no deal here.
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