How do I approach this situation? - Posted by WindyRidge

Posted by Will on August 05, 2005 at 09:13:46:

First, find out if it is occupied by the owner or by a renter. Your county appraiser office (or website) should be of service to you in that regard.

If it’s occupied by the owner, I’d go knock on the door. Tell him/her that you’re looking to buy a house in the neighborhood and you were wondering if they knew anybody who might be willing to sell.

If it is not occupied by the owner, I would call the owner on the phone. Ask them if they are thinking about getting out from under the burden of owning that property. Tell them you know it can be tiring dealing with tenants and maintenance issues, but that you are looking forward to a fresh challenge and you were wondering if they might consider selling the property to you.

My experience is that it is pretty difficult to target ONE property like that, though. It’s much easier to send that message out to a big group of people and let the interested ones get back to you than it is to hope for THIS PARTICULAR owner to express some interest.

You just can never tell what situation people are in. There is a family that owns 6-7 houses in my neighborhood in a college town. Property values are pretty high for this part of the country. Four of the houses are vacant and just absolutely in HORRIBLE condition. The father passed away and the mother is out of it. The daughter is not the brightest bulb in the box. They have 2 or 3 properties rented…and that is good enough for them. I’ve talked to them about the expenses for the vacant properties that must be eating them alive. I’ve tried to L/O them and I’ve tried to buy with cash. I’ve tried to get them to finance so they could have cash every month instead of a lump sum. I figured at least they could sell me one, use the money to fix the other three, and get their revenue stream going again.

There is no way this is a good situation for them right now. But they are not ready to sell.

How do I approach this situation? - Posted by WindyRidge

Posted by WindyRidge on August 05, 2005 at 08:41:51:

I’m within a week of finishing my most recent rehab and am going to do really well on it. I’d like to do a 1031 exchange but there is nothing around for sale or in foreclosure right now that is worth putting the money into. I have however, found a property in a excellent neighborhood with great real estate values that looks like it?s abandoned it is so run down. It does however appear to be occupied though because there is windows open and sometimes the front screen door is open. What is the best way to approach the owner of this property? What ways do you find are the best on how to approach an occupying owner who may not necessarily be in distress? If I were to mail them, what should I say to make it compelling enough to make them contemplate a possible sale?

Thanks for any help you can give!

Re: How do I approach this situation? - Posted by Natalie-VA

Posted by Natalie-VA on August 06, 2005 at 18:19:03:

If your intent was to immediately resell for profit, you may not be eligible for a 1031 exchange. You might want to check with a CPA.