Help with Deal...How to approach elderly couple? - Posted by Scott (ATL)

Posted by Scott (ATL) on October 25, 2003 at 20:37:52:

Thanks Randy…good advice. However, he cancelled on me. Supposedly a “family emergency” but I got the impression he changed his mind. No biggie as I simply sent a follow up letter stating I’m available when he’s ready to discuss selling his home…so on and so forth…

Thanks again!

Help with Deal…How to approach elderly couple? - Posted by Scott (ATL)

Posted by Scott (ATL) on October 22, 2003 at 21:57:54:

I just spoke with a seller who called from my flyer. He’s 87 and moving into an assisted living community. He owns his home free and clear and it is worth over 400K in good shape and actually it is in such a nice area it is probably worth more even in bad shape…a lot of tearing down homes and putting up 800K-1Mil+ in the area.

Anyway, I didn’t ask as many questions (i.e. repairs) as I should have but I’m meeting him this weekend. He’s willing to take $275K for the place which is well within my limits! Anyone’s limits! Well, I’d rather he take back the financing but he’s a bit hard of hearing so it was tough to communicate but his assisted living will be 3K/mo and he doesn’t feel he will be around much longer so he wants some of the cash to pay for his living and the rest to then go to his kids.

I have to some how explain to him that income is better than cash. If I took title in a trust it would be easy enough to redirect the monthly payments to children if he passed away because we could just write that in the trust right? However, I don’t want to get into all the technical details with him on Sunday but I certainly want to make this a win for him, his children and me.

Any thoughts on how to approach the negotiation and try to convince him to take as little now and the rest as payments even though they won’t cover 3K/mo? His wife appears to be the only one on title according to the tax records (they purchase in 72 and I?m assuming it is his wife and not an aire) so I don’t see any other deed transfers (not that there aren’t any). I guess I need to be sure to talk to both of them.

Thanks ahead of time for your input!!

Re: Help with Deal…How to approach… - Posted by Randy (SD)

Posted by Randy (SD) on October 23, 2003 at 11:43:23:

This may put a wrinkle in your deal but try to involve a younger family member (one of the children) or his legal adviser involved early. You don?t want to be accused of exploiting his lack of understanding or comprehension. Your not going to like this but if he sold it for the $400k market value at 8% he would get $3k monthly payments? great for him, not good for you.