Family’s estate in Pacific Heights

[Angelo Gordillo]

Hello all,

This is my first post, and what a weird one for me. I’ve just joined Biggerpockets because I want to set my family free financially, and real estate seems like the ticket to do so.

Now that I’m interested, unexpectedly my extended family has decided to sell their largest real estate holding: a 6 bedroom 4 bath, 3 story home in the Pacific Heights neighborhood of SF. The home’s square footage is over 5,000 square feet. It was built in the early 1900s. It’s an impressive home, with incredible architecture, valued sight unseen at over 2 million. I’ve run some comps, homes with similar square footage, baths, bedrooms and lot size in the same neighborhood (but in great condition) sell easily for 3.5 to 5+ million. So I see that there is a real opportunity here.

So to make a long story short, here’s the deal: 

My great aunts in their 70s, who are the property owners, have lived in the home all their lives, since they were children. They have let the home fall into disrepair. It’s not even close to a tear down, but it needs some real TLC, inside and out. It’s on knob and tube, there’s no working heat system, old single pane windows etc. I am certain that this house would be a flipper’s dream for someone with enough liquidity. This home isn’t on the market yet, but it’s soon to be.

Now I’m a dad, with three kids and at this time I don’t have any serious money to invest. Is there a way that I can use my knowledge of the sale and relationship with the sellers to leverage a real estate deal with an investor? Anyone have any ideas? I think it might be a long shot, but I thought it couldn’t hurt to ask, and maybe I might learn something in the process. I hope I don’t come off as naive.

More than anything, I worry that a savvy real estate investor is going to see dollar signs and take my great aunts to the cleaners and they deserve better.

Thank you community members for sharing your knowledge and expertise.