Approaching An Abandoned Property Owner
I'm in the ATL area...I have located 4 run-down, vacant, seemingly "abandoned" houses. I went to the courhouse and now I have the names and addresses of the owners. I'd like to buy these properties and fix them up to wholesale or retail. I'm hoping I can get them for next-to-nothing (seller carry? ahhh). The only thing is this - I'm a bit out of sorts as to how to approach these owners. These houses have been like this for YEARS. Can anyone offer any advice as to what I could say to these folks? Any help/advice would be appreciated.
I do not have good luck with houses that have been abandoned for a long time. By now many investors have tried to contact the owner. But, most have probably sent letters so calling the owner might be in your favor. But first, you can just send the owner a letter and see what happens. If it is returned that is a good thing. That means that the other investor's letters were returned also. Most people are lazy so they probably just gave up. Now you must become a PI and find the owner. If the letter is not returned then you follow up with a phone call. Dialogue is pretty simple. Ask for the owner, identify yourself and that you have previously sent a letter regarding the property.
"I hope you do not think this is forward, but I wanted to discuss this property with you directly. As my letter said I have an interest in buyin the house. Have you thought about selling it." Ask him questions about the house to get a dialogue started. "tell me about the house". "how did you come to own it". etc. Ask what would he consider selling the house for. Try to get a number from him. You should already have a number in your head so that you can tell right away if he is motivated or just pulling your chain. You should already know what fixed up houses in the area sell for and by looking at the outside and peeking in the windows you should have some idea of the fix up. You do not need an exact number - you can say something like "well considering the size and the neighborhood, my offer would be in the 30s if the interior is in good shape and in the 20s if it is in bad shape. I will not know until I get in the house". But if he is saying something like in the 50s, you just say that houses in that neighborhood do not sell in the 50s, especially one that needs a lot of work. And then try to engage him again with "and what work would you think is needed. what do you know about the roof".
But again, my experience is that houses that have been vacant for a long time have cranky, money grabbing owners. Otherwise the house would have been sold ages ago.
Brenda
Thanks for the reply - I will try to mail them a letter first and see how it goes.
What I would want to know is how long the house has been vacant? Houses and Buildings tend to deteriorate faster when they are vacant,because no one is there to take care of day to day maintenance.Find out what the comps are on similar houses in the neighborhood,this will allow you to make a decision if any or all of the houses are a good www.deal.Good luck.
Another concern you should have is what taxes/notes are on these properties. If they have been abandoned it is likely there are back taxes. I would do my homework before initiating contact or you may be wasting your time.
[addsig]
OK, I mailed all out letters and hopefully they will call me. I also will check and see if there are any back taxes owed. I couldn't locate phone numbers for any of them so I have to go with the letter route first. They've all been vacant for at least 4 years or maybe more.
Well, I sent letters to the owners of record to 3 abandoned vacant houses I found, and this lady received my letter and called me about it today. Seeking advice, as this deal could be somewhat complicated.
The property - it is a run-down, holes in the roof, falling apart 2 bedroom (maybe 3) house on a 60' x 200' lot. It is the only one like this on a street of cute little older houses. It has no indoor plumbing. It has a well (very weird as I believe the rest of the houses on the street are on the sewer system and have plumbing!). Very old little house that was just left behind. I haven't been inside yet but I'm going in the morning. The comps are from $80K to $120K depending on # of beds/baths. She didn't have an amount in mind but she read the tax valuation which was $27K (which is crazy if you ask me), estimating the lot at $18K.
The situation - I'm dealing with the daughter (in her 50's, 60's?) who tells me the deed is in her father's name who passed away when she was 6. The mother remarried and she passed away, 13 years ago, and finally, the second husband has also passed away. None of these people had a will. There were 8 children in all and 3 are alive, the other 5 have left children behind (more heirs). What I didn't ask was whether or not their estates had been probated (I don't see how if the property wasn't sold though). She spoke of having the heirs sign a quit claim deed; said she didn't want to pay for an attorney; that she couldn't afford to fix it up herself; and wanted to sell but didn't have an amount in mind, that she thought it should be torn down and started over but that we might not be able to get a bldg permit (??). We left off talking with the idea that I am going to look at the property and call her back.
The whole idea of all the heirs and legal issues makes me nervous regarding the clarity of the title. Since she doesn't seem willing to go see an attorney or even a realtor on her own then I'd have to go out on a limb with my attorney to get some answers (?) I'd like to re-hab & retail this house, double-close, or fix it up, re-fi/cash out and rent it out. Legal advice? Help? How do you know when it's so far gone that it isn't worth it?
Well there is one hard rule i use and that is if somebody else want to pay for the property more than I paid ythen got yourself a winner. Problems are opportunitiese to make mula. I would run an ad in the paper for how much you want to make off the property plus what she wants to sell it for and see how many responses I get for the house. Spend about 150 for an ad. If you get 20 to 30 calls you should probably consider doing this deal. It migh take about two months to complete wit the lawyer and all but hey if you can assigned it for a few thousand why are you sweating it
Quote:
On 2004-02-16 15:49, bigdredd wrote:
Well there is one hard rule i use and that is if somebody else want to pay for the property more than I paid ythen got yourself a winner. Problems are opportunitiese to make mula. I would run an ad in the paper for how much you want to make off the property plus what she wants to sell it for and see how many responses I get for the house. Spend about 150 for an ad. If you get 20 to 30 calls you should probably consider doing this deal. It migh take about two months to complete wit the lawyer and all but hey if you can assigned it for a few thousand why are you sweating it
Great idea.
John
Quote:
On 2004-01-26 11:51, REGoddess wrote:
Well, I sent letters to the owners of record to 3 abandoned vacant houses I found, and this lady received my letter and called me about it today. Seeking advice, as this deal could be somewhat complicated.
The property - it is a run-down, holes in the roof, falling apart 2 bedroom (maybe 3) house on a 60' x 200' lot. It is the only one like this on a street of cute little older houses. It has no indoor plumbing. <IMG SRC="images/forum/smilies/icon_rolleyes.gif"> It has a well (very weird as I believe the rest of the houses on the street are on the sewer system and have plumbing!). Very old little house that was just left behind. I haven't been inside yet but I'm going in the morning. The comps are from $80K to $120K depending on # of beds/baths. She didn't have an amount in mind but she read the tax valuation which was $27K (which is crazy if you ask me), estimating the lot at $18K.
The situation - I'm dealing with the daughter (in her 50's, 60's?) who tells me the deed is in her father's name who passed away when she was 6. The mother remarried and she passed away, 13 years ago, and finally, the second husband has also passed away. None of these people had a will. There were 8 children in all and 3 are alive, the other 5 have left children behind (more heirs). What I didn't ask was whether or not their estates had been probated (I don't see how if the property wasn't sold though). She spoke of having the heirs sign a quit claim deed; said she didn't want to pay for an attorney; that she couldn't afford to fix it up herself; and wanted to sell but didn't have an amount in mind, that she thought it should be torn down and started over but that we might not be able to get a bldg permit (??). We left off talking with the idea that I am going to look at the property and call her back.
The whole idea of all the heirs and legal issues makes me nervous regarding the clarity of the title. Since she doesn't seem willing to go see an attorney or even a realtor on her own then I'd have to go out on a limb with my attorney to get some answers (?) I'd like to re-hab & retail this house, double-close, or fix it up, re-fi/cash out and rent it out. Legal advice? Help? How do you know when it's so far gone that it isn't worth it?
Send me a private message as I know a GA investor that might want to take this on.
Definitely complicated. At the same time it might be worth the effort for an experienced investor.
John
On the title and possible back taxes.
GA is a state that sells the tax liens from what I remember. As such you might be able to buy the property out from under her buy obtaining the back liens (they will be owned by someone so you will have to deal with them).
Lets assume that there is an investor that owns them. Even if you do not want to wipe the lady out, the other investor might not even care. Hence you can go to the owner (one of the owners it sounds like) and explain the facts re: she might be wiped out if the holder of the tax liens takes action.
The point is just because she wants X does not mean that she will get even close to X. She might be looking at zero as her real interest in the property at this point.
John
While that is true, problems can also mean TEARDOWNS, or NO DEAL.
I just looked at a house y'day, and all the wiring was external - that house is so out of code it is crazy. The building and the lot are functionally obsolete, AND the owner is not motivated and wants too much.
next.