Posted by Frank Chin on May 22, 2007 at 10:08:18:
Having read your other responses, another thought came to mind.
I have aged parents, and a good friend of mine with an aged uncle, each of us having recommended “estate attornies” to do estate planning, and as they had investment real estate, and businesses, the “estate” attorney often gets involved in decisions on those as well.
If it’s an older guy, someone not in the best of health, have lots of other assets, making top dollar may not be the highest priority, and the emphasis may involve “estate planning”.
My friend’s uncle owned a gas station, and when he was in his mid 50’s, thought the best thing to maximize on his investment was to do a long term lease with a major oil company rather than selling outright. In theory he just sits back and collects the rent, and the value of the land goes up in the meantime.
In practice, the oil company completely reconstructed the place, and with widening of the state road in front, it turned out not to be a “go to sleep” investment. His approval was needed on a wide range of issues, and when it was happening, some years later, he had alzheimers, in a nursing home, and his nephew, my friend did all the running around with a “power of attorney”. He since passed away.
So whenever a developer wanted to partner with my dad, no down, to develop his commercial property he ownes, where it’s zoned for a high rise, I always console him not to be that to “get more”, but sell it conservatively, since someone getting around in a walker, and in and out of nursing homes may be better off taking less, and just “get out”. Partnering with others, selling on terms, while making him a few dollars more, would entail his involved with others way into the future.
In other words, I can’t picture him at 95 years of age, chasing some guy for a note payment, on a walker, (and I have to drive him around) on some creative deal, where he a few dollars more on the deal. Just get a few dollars less NOW, cash!!
If you plan to sit down with this guy, or his attorney, keep in mind that he and his attorney may have priorities other than this one investment.