need a little encouragement - Posted by Jan

Real Estate Investing Real Estate Gurus
#1

Posted by HR on February 27, 2001 at 08:13:48:

Jan,

I would see what they plan on doing with the money. Obviously, they aren’t taking it with them. Do they want to leave it to kids, charities, etc?

If they do, then they will provide more money for their beneficiaries if they sell on a land contract. Not only will uncle sam take a smaller tax bite, but the interest on the sale will generate more money over the long haul.

My only hesitation here is your lack of experience. If they have a lot of properties, they are pros. You have never done a deal. Why should they want to put all their hard earned assets at risk with you, when they can sell to another, seasoned, experienced pro? If you can answer that objection, and you have all the paperwork, connections, etc. to pull this off, you just may be able to pull it off.

Good luck,

HR

#2

need a little encouragement - Posted by Jan

Posted by Jan on February 27, 2001 at 06:07:08:

Hi,guys, I’ve been reading and I’m ready to invest. I know this person who has alot of investment property. Apartments and homes. She is in her 70’s and is not sure if she wants to do land contracts or L/O because of her age. Her husband is not in the best health. I really want to make her an offer but sounds like she wants all cash for their properties. I think I’ve found a great opportunity but can’t quite convince her or her husband a no money down deal could be to their advantage. Need some expert advice!!This will be my first deal and I’m excited!!!

#3

Re: need a little encouragement - Posted by Gary

Posted by Gary on February 27, 2001 at 21:46:25:

Is this a friend? Is there a trusting relationship here? If yes, I would encourage them to go to a tax advisor so they can hear from another person the tax benefits of selling on the installment plan vs. taking all cash. Older people tend to be conservative and don’t usually think “out of the box.” All cash always sounds better. If they want all cash, don’t be shy about asking for a discount below market value. If they can sell all cash at market value, they would have already. I have learned not to be afraid to ask for unusual terms. They may just want to unload all the management problems that go with the properties. Also, ask them what they enjoyed about holding all those properties for so many years, I am sure it was the income. Another positive argument for the land contract…because they can’t get that kind of return in this crazy stock market or the lower rate on CDs…good luck.