I have an opportunity concerning a property, Is it distasteful/unethical??

Random Ramblings
1

Good Morning,

I just learned a good friend and neighbor passed away last night. He was in Florida at his winter home. The home next to my house was his summer home.
I know neither he nor his wife really liked it up here. They only spent a few months during the middle of the summer here. The house is in fantastic shape and is just a really nice piece of property.
I am saddened by his passing and will miss him. My investor instinct is to offer to help the family by purchasing, or telling them I can find a buyer quickly. I also would like to do this to save them from all the animals…opps…I mean realtors and “investors” in this area. When I factor in that the house is paid for, I can see a real chance of them getting screwed, even after the initial shock of his death has passed.
However my gut is telling me just to pass.

What do you folks think?

2

You have a great service for them, so don’t be shy. The surviving spouse may not be thinking about selling the ‘summer house’ and her mind is likely clouded at this time. Frankly, I doubt anyone is going to put the house on it’s probate prospecting list, but anything could happen. Otherwise, her mind will clear after a couple of years, or so.

Offering to help, out of the blue, is gonna come off as dysfunctional, at best. If you’ve got a relationship established, then it’s natural to offer the surviving friend help in handling her home.

I don’t know where you are with this woman, so I’ll assume she knows you and likes you.

You could open the dialogue by offering to watch the house. After that you could wait for clues about her intentions with the house. When/if she mentions wanting to sell, you can naturally offer her professional help in doing just that.

Otherwise, it’s a matter of listening, and responding.

Or maybe you could just put it to her:

"I understand your husband’s taking a dirt nap.

Since that’s the case, he’s not gonna need that ‘summer house’ anymore, and you hated it anyway. It’ll just remind you of old times, and that’s gonna make it real hard for your next husband to feel secure about the relationship. Just saying.

So, let’s say I help you get rid of that bad memory, and threat to your next marriage, and make it all a win/win deal for all involved?

Or you can continue living in the past and pining over your dead husband. It’s your choice. Tic Toc."

j/k :anon

3

Javipa,

I Love It!!! Reminds me of some of my pitches closing car deals for my junior salesmen a decade or so ago.

"I understand your husband’s taking a dirt nap.

Since that’s the case, he’s not gonna need that ‘summer house’ anymore, and you hated it anyway. It’ll just remind you of old times, and that’s gonna make it real hard for your next husband to feel secure about the relationship. Just saying.

So, let’s say I help you get rid of that bad memory, and threat to your next marriage, and make it all a win/win deal for all involved?

Or you can continue living in the past and pining over your dead husband. It’s your choice. Tic Toc."

Thanks for your input!

4

Another viable option to consider is a life annuity in exchange for the title to the home. It is likely that an elderly widow does not have an interest in dealing with real estate maintenance, repairs, etc.

Perhaps she would consider transferring the title and in exchange, prepare a security deed in her favor that would pay her an income (which you could derive from renting property) as a ‘life annuity’ and would expire at her death.

This would leave you with a free and clear house at her death, provide some cash flow during the balance of her life for you and her, and relieve her of any further concerns about the property management.

Although this is a unique approach, the older I get, the more I prefer less management and more income…this would definitely accomplish your goals and could accomplish hers as well.

If there are children involved, this might not work as stated above, but it could work as a 30 year or 20 year mortgage, thus giving children income without management at the second parent’s death and no worries of having to fix up and resell.

So, exchange property for a life annuity or offer to buy with 100% 20 year or 30 year financing by survivor.

Hope this helps.

Rob

5

Go forward with it.But first get to know them and establish some relationship before jumping into offering them.Let them know that they could get screwed if they don’t do it.That might help it.