Deal Finding Strategy - Divorced Couples?

Question

Hey BP,

So this has somehow been brought to my intention and I'm interested if anyone has some insight on the matter.

Is there any way to locate soon to be or recently divorced couples who own property?

I know it's not the most ethically sound way to find deals considering the scenario, but it does seem like an interesting way to find deals?

Would love to hear your thoughts about this.

@Brandon Turner @Ben Leybovich @Anson Young @Mindy Jensen @Matt Faircloth

Thanks!

Chris K. · Answer

@Zachary Gwin

I would follow advice of @Ben Leybovich and start networking with family-law attorneys in the market you want to advertise in. Be ready to provide some "benefit" so that the attorneys feel comfortable recommending your business to the clients (e.g. ability to close quickly, making offers without financing contingencies, etc.). People have done similar marketing with estate attorneys.

Ben Leybovich · Answer

2 ways: direct marketing (blanketing, unfortunately), and make friends with divorce attorneys

Good Luck!

Max T. · Answer

@Anson Young just because something is legal does not mean it is ethical.

"The difference between legal and ethical issues stems from the division between the core areas of law and ethics; law controls what people can and cannot do, while ethics are moral standards that govern what people should or should not do. Legal and ethical issues arise frequently, and are commonly encountered in certain fields such as medicine, healthcare and politics. In some instances, legal regulations prohibit people from carrying out certain tasks, such as administering life-saving support, that are considered morally permissible actions.

FULL ANSWER

Some laws generate few negative responses, as their intent to protect and promote the safety and well-being of the public is virtually indisputable. Other laws, however, generate disagreement among citizens, particularly over sensitive issues such as end-of-life care and medical treatment for certain conditions. While legal and moral issues sometimes coexist in harmony, they can also raise questions and generate conflicting opinions.

Providing medical treatment or failing to do so, for instance, is a controversy concerning law and ethics. An elderly patient in a nursing home might have a statement in his or her will allowing the refusal of resuscitation in certain situations. If the patient suddenly collapses, many people would consider the act of resuscitating the individual to be the morally correct course of action, while law prohibits such actions."

from https://www.reference.com/world-view/difference-between-legal-ethical-issues-b59c4a38f6029883#

Matt Faircloth · Answer

Hey Zachary,

Good idea.

I know it seems like we are preying on people in distress, but it's not different than going after estate sales.  I think that we offer them a solution to a problem, which is "what do we do with this house?!?"  LOL.  I would go about two ways.  One would be to contact local divorce attorneys and let them know that you can buy houses quickly and with cash.  I would also find a way to search the public record for divorce filings - I'm not sure which court or keeper of records would have that filing but I bet that's a quick Google search or call to the county clerk.

Thanks for bringing me into this conversation, curious what the others have to say.

Matt

Anson Young · Answer

Well, anything is ethically sound as long as its legal, right?  If the divorce notice or notice to creditors or whatever the state uses is public records, thats a legit way to get in front of these types of potential sellers.

There are a few gatekeepers here, either court records search if possible, or networking with divorce lawyers.  Possibly more.  Like any other lead, you may just get the records but not any mention of real estate, and you would have to cross check the names with tax records to see if they own a house.  Of course *most* couples have to sell the house to pay one or the other off, so many times divorce = selling the property.  Problems arise when the court mandates a certain 'market price' based on independent appraisal or similar valuation methods, which may be too much for the average investor to pay.  Otherwise the wife or husband could sell the house for what is owed and screw the other out of their expected proceeds (yep, it happened enough to mandate the court stepping in and stopping that kind of thing).

The few divorcing couples sellers I've worked with were nightmares, but it was probably my luck :-).