Difficult heirs, it's almost like the Hatfields vs. McCoys!

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Difficult heirs, it's almost like the Hatfields vs. McCoys!

Letitia Harris
Flipper/Rehabber · Ahwahnee, CA · Member since 2014 · 95 posts · 26 votes

This seems like the right place to post, and ask for advice.   

I've found an abandoned SFR, and after over a year of searching, finally found the heirs. The house has serious back debt to the city & back taxes, but there's room for me to flip it, if I can get them on board.
There is BAD blood between the 4 of them, and I'll need them to sign a contract selling it to me, after we get their names on the deed (it's still in the deceased relatives name).   There isn't a lot of profit for them, but it'd be better than the nothing they currently have, a vandalized, sad house, and no clear title to it.  None of them can afford to pay the debts.   I'll be paying to get all of that done, taking it out of the purchase price.
So, what have you done to get heirs on the bandwagon, when 2 of them detest the other 2?   They have anger issues regarding how other relatives were treated, years ago.  
Help!  

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Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
9y

Tell them the city has sued the heirs for cleaning up properties and that its an liability if someone gets hurt .  You are there to help them 

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  • Jeff B.
    Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    9y

    I would evaluate the paid/unpaid taxes and await the tax sale.  You might strike fear in them with your intent to acquire via the Sheriff's Sale and reiterate your offer to buy them out prior to that occurrence.  Make sure your letter states Firm  & Last offer, expires mm/dd/yy.

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  • Rob Lane
    Oklahoma City, OK · Member since 2016 · 91 posts · 78 votes
    9y

    I would offer cash to be honest with you.  If they are broke need money, they will sign.  You will just have to do it individually.  Pay them a $100 a piece if the deals worth it.  Your going through all the other tax problems which means your dealing with local government.  People are easier than government. 

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  • Letitia Harris
    OP
    Flipper/Rehabber · Ahwahnee, CA · Member since 2014 · 95 posts · 26 votes
    9y

    Thanks for the input, it's very appreciated!   I'm sorry I didn't clarify before, I'm all cash, but one of the heirs is so angry at the other 2, she said to me last night that she'd just as soon let it rot into the ground.    I tried to talk sense to her, and the conversation eventually ended with her saying she'll talk to her kids about it, and will call me tonight.   I sincerely hope they talk sense into her!   We have a good rapport, so hopefully they'll come to the table.  I've been in touch with 3 of the 4, I don't have contact info on the 4th, but the others do.  All they need to do is agree, and sign the contract so I can get the ball (s) rolling...  I'll do all the work to make it happen from there...

    I don't want to wait for it to go to a tax sale, since it's being vandalized now, and of course getting first shot at it is everything, with no bidding war.  

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  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    9y

    Tell them the city has sued the heirs for cleaning up properties and that its an liability if someone gets hurt .  You are there to help them 

    2Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    9y

    You may have to open an estate. You should be buying from the estate not the heirs. Although getting the heirs to sign a contract is a good start.

    This will be a complicated deal and may not be worth the effort. But if you can pull it off you will have learned a ton and will have achieved something most investors couldn't begin to handle. There may be other angles to take, like buying the rights to any surplus at the tax sale.

     @Jay Hinrichs may be able to give you more detailed info RE California laws.

    1Reply
  • Letitia Harris
    OP
    Flipper/Rehabber · Ahwahnee, CA · Member since 2014 · 95 posts · 26 votes
    9y

    I'm hoping to avoid probate if we can.   I believe it's *possible,* if I can get them to sign a contract.
     I met with a probate attorney about this, and had 1 of the heirs on a conference call, for complete transparency.  She didn't like what he had to say (the 2 disliked heirs have rights), but it's the law,  not sugar coated.    

    I've learned a lot so far with this one, and we're not done yet!  I really like the house, it's worth it to me to give it my all.

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Ned Carey  as you know Ned we like the really hairy ones  the tougher the better.

    but in this case I think I would just let it go to tax sale and buy it there.. you clean up title and wipe out any liens in CA and there is no redemption in CA... worse case you hold one year for title policy on the resale.

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    1Reply
  • Letitia Harris
    OP
    Flipper/Rehabber · Ahwahnee, CA · Member since 2014 · 95 posts · 26 votes
    9y

    An update to this house:  The heirs are now battling it out in court.  I'll keep my eyes on the tax auctions, to see if I can pick it up that way.

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