Seeking Advice on Purchasing Family Member's House - Sensitivity and Opportunity

[Tyler Fitzpatrick]

Hello fellow real estate investors,

I'm currently in the Atlanta market and excited to purchase my first property. The potential opportunity has arisen within my girlfriend's family, as her uncle mentioned the Likely POSSIBILTY of selling his beautiful house in Suwanee in the near future. However, he's a private person. And he's at the point in his life where he wants to minimize his responsibilities at this stage of life.

My girlfriend brought up the conversation a few months ago, but he made it clear that he wasn't ready to discuss it at that time. I respect his boundaries and don't want to create any unnecessary anxiety. However, I'm actively searching the market now, and his house would be a fantastic fit for me/us.

I'm seeking advice on how to approach this situation delicately and explore potential win-win scenarios. One idea I had is proposing a creative financing option, such as purchasing the property "subject to" or exploring other alternatives that would benefit both parties. Alternatively, I could utilize my preapproved loan, but it would mean accepting a higher interest rate. Ideally, I would like to acquire the house at the low interest rate he currently enjoys.

Here are some additional details:

• The house has an existing mortgage.
• He likely expects to sell for top dollar.
• He believes that selling would require him to move immediately.
• I'm open to allowing him to stay on the property rent-free for a period and then pay rent, as he did for me in the past.
• My overall goal is to house hack the property, potentially by converting the basement or adding an ADU in the yard.

I would greatly appreciate any insights, suggestions, or experiences you can share to navigate this situation with minimal friction. Should I explore other properties and consider purchasing his house when he's ready to sell? Any advice or perspectives are welcome.

Thank you in advance for your valuable input.

[Chris Seveney]

Quote from @Tyler Fitzpatrick:

Hello fellow real estate investors,

I'm currently in the Atlanta market and excited to purchase my first property. The potential opportunity has arisen within my girlfriend's family, as her uncle mentioned the Likely POSSIBILTY of selling his beautiful house in Suwanee in the near future. However, he's a private person. And he's at the point in his life where he wants to minimize his responsibilities at this stage of life.

My girlfriend brought up the conversation a few months ago, but he made it clear that he wasn't ready to discuss it at that time. I respect his boundaries and don't want to create any unnecessary anxiety. However, I'm actively searching the market now, and his house would be a fantastic fit for me/us.

I'm seeking advice on how to approach this situation delicately and explore potential win-win scenarios. One idea I had is proposing a creative financing option, such as purchasing the property "subject to" or exploring other alternatives that would benefit both parties. Alternatively, I could utilize my preapproved loan, but it would mean accepting a higher interest rate. Ideally, I would like to acquire the house at the low interest rate he currently enjoys.

Here are some additional details:

• The house has an existing mortgage.
• He likely expects to sell for top dollar.
• He believes that selling would require him to move immediately.
• I'm open to allowing him to stay on the property rent-free for a period and then pay rent, as he did for me in the past.
• My overall goal is to house hack the property, potentially by converting the basement or adding an ADU in the yard.

I would greatly appreciate any insights, suggestions, or experiences you can share to navigate this situation with minimal friction. Should I explore other properties and consider purchasing his house when he's ready to sell? Any advice or perspectives are welcome.

Thank you in advance for your valuable input.

Happy Fathers day to all. I am someone who does not like to mix business with family and it seems like the Uncle wants to simplify life. With that being the case, i would not propose some type of creative financing. While it may benefit you, does it benefit them? What if something were to occur where you could not make payments? What if you and your girlfriend do not stay together? 

In this scenario, i think its better to get an appraisal and buy it and finance it conventionally.