How to approach 90-something owner about buying?

[Sarah Jakubiak]

My husband and I are just starting to invest in real estate and are thinking about any opportunities we may have to find a deal. My husband grew up shoveling snow for an older man who lives alone in a 3 family. The man is quite old now and we are wondering what the best way is to approach the man about purchasing his property which needs a lot of updating. Do we send him a letter, call, knock on his door? Should we offer him a the option to live there rent free as he likely wants to live there the rest of his days? I'm guessing he's in his late 80s or early 90s. Any advice, tips, suggestions or just stay-away advice is appreciated. Thanks!

[Joe Splitrock]

@Sarah Jakubiak I would just talk to him and understand his situation. Find out if there are kids or other relatives involved. They should be included in the discussion, because they are going to be involved eventually. Living rent free sounds great, but as a landlord you will still be required to fix things. Who knows how long he will live, so there is no way to calculate the discount needed for him staying there. 

Be aware that many older people have slower mental response and are often naive to current real estate values. You have a responsibility to not take advantage of him. That means offering fair value (for condition) and making sure you are not taking his home, leaving him nowhere to go.

He may want to move to an apartment where there is low/now maintenance, so it could be a win/win. Just make sure it is what he wants and not what you want.