Client/Friend Wants an Abandoned Property

[Devin Hightower]

Hi everyone!

So I'm an agent currently helping a friend of mine buy a new home. I have an interesting opportunity to help them out and gain some unique experience in the process. They are having a child soon, and would like to be close to family. There is an abandoned house next door to his sister-in-law that would be an ideal location, but apparently nobody has been able to contact the owner for some time now. So there are a couple of obstacles I'd greatly appreciate advice on, and figure the story would be worth tracking here.

1. Tracking down the owner and convincing him to sell. I've done some basic internet searching and found what might be his current address and phone number. He's a 60+ year old man who has lived primarily in rural areas, and has apparently just stopped caring about the property. It hasn't been rented in years, but it seems as though he's still paying on it and everything. He's owned it for over 25 years, so it may be nearly paid off, and there is significant equity, as the market has over tripled since he bought it. Have you guys ever encountered completely absent owners and how did you convince them to sell? How did you get in touch with hard to find people?

2. Negotiating a price. It obviously won't be the standard negotiating process because the seller is absent and has abandoned the property, and because there is a strong emotional driver for my friend to be able to live next door to family. I know I should try to get him to name a price first then go from there, but what other negotiating strategies might be relevant in this context.

3. Rehab. After talking to my friend, he seems extremely hesitant to undertake the full rehab. Definitely understand, especially with the baby on the way. After setting expectations for what might be involved, he seemed a little defeated and as if it is unreachable. This is where my investor hat kicks on. Should I approach this from a flipper perspective rather than an agent perspective? I figure that might be a win for everyone if the numbers work. I would get flipping experience, I'd likely be able to sell them a renovated property for under market value, and they'd get to live next door to family. Would appreciate any thoughts on that from the community on this plan or other ways to optimize this situation.

Anyways, sorry for typing so much, but just wanted to get this one out to the hive mind. Thanks in advance, and I'll keep you guys updated on how this evolves!