Is getting a GREAT deal unethical?

[Account Closed]

Apparently, I'm guilty of elderly abuse for getting this great deal. 

I recently posted on my real estate investing IG page about a 3-plex that I was lucky to purchase in late 2018 for $25k, with $2100 rents. It didn't really need improvements. This is one of many deals that I've purchased at less than 50% of market value. Pre-covid, I could've sold it for 125k-135k within my private network of buyers. Mannnnnnn, did I get some social media hate lol. 

Here's the story: The seller was in his 80's, and contacted me from a direct mail letter that I had sent him. He had asked for $25k, citing that another investor had offered him $20k but would no longer return his calls. After discussing the condition of the property, I quickly accepted his offer contingent upon my property manager walking the building. The seller seemed very about his wits- age did not seem to slow him. Nonetheless, the property was in a trust. His son was the trustee, and handled all communication regarding the transaction thereafter. My offer letter was reviewed by an attorney of the seller's trustee's choosing. They had accepted and I closed under the conditions described in the offer. 

Honestly, I saw a great deal... but the comps in this area ranged from $500-$35k, with a duplex next door having sold for $3,200. There was an environmental crisis in the area that was being remedied by the EPA, which I researched thoroughly and was willing to bet would be resolved. I knew rental demand in the area was strong and I could find reliable tenants despite of the low values and challenges the area was facing. 

So did I take advantage of this 80 year old man?

Most of my following was pumped to hear about this deal. Naturally, there were some ignorant comments from those with no understanding of the situation. But one commenter went as far as to suggest that I should have had the seller quit claim the property from the trust to another entity, pay more for the property, and have the other entity deposit funds exceeding the basis price into a term life policy as a loophole method to not compromise the seller's medicare benefits. He also went on to insult, and said he will be contacting the local DA to report me for elderly abuse. Ha. 

Look, there's nothing even slightly illegal or fraudulent about the way this transaction was conducted. 

I don't think it's unethical either. Do you? 

What about every other real estate deal purchased under market? Is it wrong for us, as investors, to be opportunistic when presented with a discounted property? 

[Jay Hinrichs]

this is a very fine line we walk in this business..  and really you can only look within,

on this site i suspect 80% will think this was great and the rest will be anywhere from hey thats not right to your a sleezeball LOL.  

One thing is for sure though once the seller hires an attorney to represent them in the transaction.. your off the hook for any type of legal action..   At least thats how i understand it in Oregon WA and CA..

We have all got our big upside deals..  I think its the person who when asked what is the property worth and the buyer says X when he knows full well thats unconscionable..