Yellow Letters - Here`s a new one.

[JimWhitelaw]

I sent out our first batch of 100 yellow letters last week. I`m tracking the responses and will publish a report sometime soon, but I received a very unusual reply today: A handwritten Christmas card/letter from an older gentleman whose wife is hospitalized w/ Alzheimer`s and will not be coming back home. He needs to move out and is very concerned about the amount of cleaning etc that needs to be done. It`s a fairly long letter with a good deal of personal information about their situation and their home. He ends with the hope that I am "Just Married as that is what [wife] and I said - `We will never move`...." Wow.

So...

Clearly, I`m not in business to "steal houses from old people". However, I do see an opportunity to create a win/win situation by offering a fair price with favorable terms. It could be to the owners advantage to convert their asset-turned-liability into a source of income to help fund the next phase of their lives. My biggest concern would be avoiding the appearance of being a house-stealer.

Any advice from those who have been down this path before?

 

[tonypeters]

Jim, you are on the right track!
As I ALWAYS say..."you can make more money doing things the right way, than you can ever dream of making doing things the wrong (stealing houses from people) way!" How do you think I know this?

I would be happy to provide you with a few ideas / pointers. If this is of interest please let me know?

QUOTE (JimWhitelaw @ Nov 30 2009, 12:10 PM) I sent out our first batch of 100 yellow letters last week. I`m tracking the responses and will publish a report sometime soon, but I received a very unusual reply today: A handwritten Christmas card/letter from an older gentleman whose wife is hospitalized w/ Alzheimer`s and will not be coming back home. He needs to move out and is very concerned about the amount of cleaning etc that needs to be done. It`s a fairly long letter with a good deal of personal information about their situation and their home. He ends with the hope that I am "Just Married as that is what [wife] and I said - `We will never move`...." Wow.

So...

Clearly, I`m not in business to "steal houses from old people". However, I do see an opportunity to create a win/win situation by offering a fair price with favorable terms. It could be to the owners advantage to convert their asset-turned-liability into a source of income to help fund the next phase of their lives. My biggest concern would be avoiding the appearance of being a house-stealer.

Any advice from those who have been down this path before?

 

[GaryMcGowan]

Jim,
This goes to show us that we are definitely in a position to help people. You could offer a Joint Venture with the couple. You provide the the tenant (RTO) and they already have the asset.
You could be partners on many levels. I`l let you figure out what you think would be best. If the property is held for a few years X amount of dollars could be theirs and anything above that determined price you would share + cash flow.

 

[JimWhitelaw]

Followup:

I talked to the owner and he`s a nice enough fellow, he is planning to move but he`s not in any rush and not really interested in owner financing. He`s thinking he won`t be leaving the house for at least 5-6 months and the reason he says he`s not interested in owner financing is that he`s too old and won`t live long enough to collect it... We agreed to talk some more in the new year, so I`ll contact him again and see where it goes.