General Real Estate Library Articles on home buying, selling, marketing and 203k Consulting
Real Estate Investors Solve Housing Problemsby Steve & Robyn Love
In Foreclosure or need a short sale? Contrary to the belief that real estate investors just “steal” houses, or are only looking out for themselves, read this true story and think about what would have happened to the house if the real estate investor hadn’t gotten involved.
Sometimes when you find a seller, it’s just not right to buy. That’s when you have to remember that you’re not just in the real estate business, you’re in the people business too. That’s when you have to do what’s right for the seller. After all, in the end it’ll be right for you too.
One time I got the pre-foreclosure house list and saw one with an $8,000 balance. The date of the deed was in the 1980’s, so I knew that this was a good deal. I went to see it, and found a neglected house full of cobwebs and dust. I wondered if the owner had died.
I decided to do a little investigating and knocked on a neighboring door. The woman who answered said: “Oh, she’s in a nursing home, poor woman. I don’t know which one.”
Back at my house I checked the Internet, and got numbers for every nursing facility in town. I called each one and finally found her; she’d been in a coma for three years. “Could you give me the name of her next of kin?” I asked.
“There are some forms you’d need to fill out,” said the voice on the other end of the line.
I went there, and dealt with the paperwork. Once I’d satisfied them that my motives were legal, they gave me the old woman’s daughter’s name and address. Her telephone wasn’t listed. As long as I’d gone this far I wasn’t going to let that lack of a phone number get in my way. The next morning I knocked on her daughter’s front door and introduced myself.
“I’m in real estate,” I said as I pulled out the listing from my folder. “I saw your mother’s house on this foreclosure list. I’m interested in buying it.”
“It’s not for sale,” she said, her voice sounding strained.
“I understand,” I told her, “but when a house is on that list it means the house is going to be sold. They’ve already put a date on it. They’re going to sell it in two weeks, and you’ll lose whatever value that’s there.”
“I’m afraid that’s what’s going to happen.”
“So what’s in it for you? What kind of scam is this?”
“It’s no scam,” I said, “you see, it’s right here on the list.”
“Anyone could type that.”
“True, but maybe you should check with the foreclosure attorney. If you could talk to him you’d see that I’m not lying to you. I’d rather get the house from you instead of getting in some foreclosure proceeding.”
She eyed me. “All right, I’ll call him.”
I sat there in her living room as she spoke to the attorney on the phone. “Yes…” I heard her say. “What’s that? Five months? I thought…yes, I guess I forgot…I’m not sure…uh huh.” Finally she hung up. For a moment she said nothing, and then she began to cry. “I…I thought my daughter was paying. She’s suppose to, and…Oh!” She picked up the phone and punched another number. I heard the phone click, and then heard the faint sound of a voice on the other end. I couldn’t hear the words. “Yes, it’s your mother…they’re taking your grandmother’s house…Have you been paying?...Oh…oh, my…oh…” A moment later she hung up. Again she was silent. Finally she said: “Drugs…they’re spending it all on drugs…I’ve always hoped mama would get well…move home
…And now this.” Then she looked straight at me. “She might get well, you know. It still might happen. But where would she live?”
As I looked at her I realized this house was the one thing that gave her hope, the one thing that made her able to live with the thought of her mother in a three-year coma.
“I think I can help,” I said. I pulled out my own phone and called the mortgage company.
It took several calls, but finally I was able to tell her some good news. “For $500 they’ll reinstate the loan,” I said, “and I can help with that.”
I helped her then, and seven months later when her mother passed away, I bought the house and helped her pay off her mother’s last bills. In the end there was $5,000 left over for her. It was a hard time for her, but I knew I’d made it a little easier.
It reminded me that, while I’m in the real estate business, there are times when I have to put the people first. (a story taken from the book “Home Remedy: Heartwarming Stories of Homes and Homeowners in Distress and the Real Estate Investor Who Rescues Them”.
The above true story is from a house that Jackie Lange got involved with. The house was going to be sold at auction without the family knowing about it. What would have happened if Jackie didn’t go the extra step and find out where the owner was and who was the next of kin? The owner’s daughter would have been devastated that her mother’s house was lost because that house is what gave her hope that her mom would get well. The new owner would have to evict the owner. Since the owner wasn’t aware of the situation, all of her mother’s possessions would either have been put in storage somewhere and possibly packed up carelessly or thrown away depending on the laws for that state . She would have been charged for the storage and it would have taken many hours to locate the treasured heirlooms she wanted to keep. The house would have sold for less than market value. The equity would have been gobbled up by attorney fees and left nothing to pay for the funeral expenses.
Without the help of the real estate investor, this house would be a foreclosure.
This story and other s similar to it are in my book “Home Remedy: Heartwarming Stories of Homes and Homeowner’s in Distress and the Real Estate Investor Who Rescues Them” by Robyn and Steve Love. www.HomeRemedyRealEstateBook.com . Robyn and Steve also have a free real estate investors education club in Los Angeles at www.irca-losangeles.com. You can also hear real estate investing gurus on our internet radio show “Prosperity Through Real Estate” on the IRCA site or for the previous shows go to www.ProsperityThroughRealEstate.com
Steve & Robyn Love
Steve and Robyn Love are experienced real estate investors, real estate broker/agent and real estate appraisers. Both graduated from Ron LeGrand's Masters In Real Estate Course. When Ron was recruiting for someone to manage the Los Angeles branch for the Investor's Resource Center of America-Los Angeles chapter in 2005, he chose Steve and Robyn Love over the many who applied. Today, the IRCA is an independent organization and we have traininer from a diverse background to help you succeed. In addition to IRCA, Steve has an internet radio show (www.prosperitythroughrealestate.com) where he interviews industry experts, newbies and support personel to aid you in your real estate career. Both Steve and Robyn wrote the book "Home Remedy". This book contains true stories from other investor on some of their deals and is for investors to learn how to negotiate like the pros and the art of putting together a deal. The book is also for homeowners to learn what reale estate investors can do for them.
real estate, book. foreclosure, house, money mother, prosperity