Re: Free n Clear - Posted by Don (VA)
Posted by Don (VA) on November 20, 2006 at 10:33:36:
I don’t see anything wrong with this approach, so long as you keep in mind that ultimately you’re looking for motivated sellers. So–to answer some of the implied questions from other posters here–why would someone who owns a property free ‘n’ clear be motivated? And/or why would it be a good deal? OK, that one’s obvious–there’s a lot of equity.
As for motivation:
Maybe they’re landlords–maybe out of town landlords–and are tired of landlording. The property is producing a nice cash flow, but the owners don’t need the cash flow and don’t want the landlording hassles.
Maybe they’re owner-occupants, ready to retire. And Florida is looking a lot better in November than, say, Chicago or Washington.
Maybe a spouse died and the survivor wants to downsize.
Maybe one or both has to go to a nursing home or assisted living facility. Either they don’t need the home anymore, or they need so sell to help pay for continuing care.
Maybe the neighborhood’s changed. Perhaps it’s gone so up-scale that the owner can’t afford the taxes anymore. Or maybe it’s gone the other way–not from good to bad, but from good to lower/ethnic. Still a great neighborhood for the right family, but not for the ones who moved in 25 years ago.
I’ve seen all these. In fact, I’ve seen all these in the past couple of weeks. And in a couple of cases, they involve my immediate family.
So there’s nothing magical about houses owned free and clear. But they may lead you to some motivated owners.