I hate hearing investors say this...

[Daren H.]

I have been listening to several REI podcasts over the past week. I like to listen to others to see if I can pick up any helpful tips as it relates to finding deals and just business in general. I keep hearing these REIs say "I/We like to buy from the mom and pop homeowners who are less sophisticated." I cringe each time I hear it. I don't know about you, but for me personally, it screams I like looking for homeowners who are financially uneducated about the value of their home so I can take advantage of them. This saying is much different from "I look for homeowners with equity who might be willing to give up some of their equity for me solving a problem". It is different from saying "I look for homeowners with a problem and need to sell their house fast for a discount". All these statements might very well lead to the same financially uneducated person. The difference to me is one person is saying I want someone financially uneducated to match up against me, the supposed expert, so I can take advantage of them. What other reason would you need the homeowner to be "less sophisticated"? Im sure you don't want your lender, inspector, contractor, closing attorney, or title company to be less sophisticated. Just the mom and pop homeowner. Nuts I tell ya!!

I don't like the statement because it makes REIs sound like predators. Just my opinion. Others might not read that much in to it. 

[Joshua D.]

@Daren H.

Good thoughts! I think we need to be careful as investors how we describe what we do. Especially in today's culture where Rich and Evil are synonyms.  

With that said I am buying 3 houses right now from a retiring Mom and Pop landlord. They KNOW they are selling cheaper than the would get if they put them on the MLS after a rehab. But they HATE relitors, and the want to sell all 3 at once and not mess with 3 individual sales. as a result they are ok with a lesser price. they are also making a boat load of money as these have been paid off for years and the have owned them for 30+ years. I am sure the are selling them for 10X what they thought was possible when they bought them.

This is truly a win, Win for each of us!