Posted by Tony-VA/NC on October 06, 2003 at 17:45:03:
It is hard to say what the owner(s) may, or may not be willing to do until you ask.
Unfortunately, a run down property does not always imply a motivated seller. Multiple heir scenarios can be tough. It is important to find out who truly owns the property, how the death of the owner specifically affected this property etc. I would suggest you begin at the courthouse to get some background information on the property and the probate case (if it was probated).
Several factors will need to be overcome. It may not be a real picnic to deal with the multiple heirs. Many times they see huge dollars signs and have already determined what they intend to spend them on. One may be motivated because they are stuck dealing with the property while the others are waiting to cash in big.
The other factor that can throw reality off is the multiple use type properties involved. Many times, when a mobile home park has a single family (stick built) home rented on the property, the seller’s value the stick built home as if it were a true single family home and not an income stream. This causes the seller to set the price too high. Adding the un-occupied commercial building into the mix merely gives them more ammunition but who knows. Motivation determines price and as of yet, we don’t know their motivation.
Remember, you are buying income streams and in this scenario, few are performing. Paying for potential income must be done carefully, otherwise you are going to quickly find yourself in a negative cash flow.
So as suggested, do your homework on the property, then get in front of the seller to find out what they intend to do with the property. Find out what there motivations are.
You don’t need to have a price in mind just yet. Ask questions and you will discover opportunities. Then you can come back here and see if we can’t help you find the solutions.
Simply take the, “I might be able to help you,” roll when speaking with the seller.