Love Letters. Real Estate

   / Love Letters. Real Estate #141  
That is interesting. I never even thought about that concept.

MoKelly
My great grandfather willed his farm to my father with my grandfather having a life estate. My great grandfather suspected my grandfather would be a womanizer (he ended up being married 3 times) and was worried that the farm would not be passed on to his lineage. Recently we discovered that the (much younger) 3rd wife had a will drawn up to pass the farm onto her kids by previous marriage. I would like to have been a fly on the wall when she found out that my grandfather did not own the farm. The farm is still intact and in the family today.
 
   / Love Letters. Real Estate #142  
If I ever considered buying a Life Estate property I would make darn sure the elderly couple's heirs are in full agreement.
That’s very admirable of you. Would you also clear any proposed sale with all heirs every time you bought a car or any thing of value from someone?

I understand the desire for prudence and not wanting to be seen as Simon LeGree taking advantage of someone but, the only real question is if the seller is legally competent to convey their interest. And, just because heirs agree doesn’t mean you didn’t really hijack the elderly seller. It may just mean you were a slick con artist who made them think it was a good deal too.

Whatever extra qualifications you add would be between you and the seller, like anything else.
 
   / Love Letters. Real Estate #144  
... the only real question is if the seller is legally competent to convey their interest. And, just because heirs agree doesn’t mean you didn’t really hijack the elderly seller.
I'm thinking that the property is sure to be worth more later when the last potential heir realizes they aren't going to inherit. At that time, someone suddenly disappointed that they didn't inherit what they expected, could easily make your life hell. I don't want to be in someone's crosshairs for the rest of my life. It isn't worth it.
 
   / Love Letters. Real Estate #145  
That is interesting. I never even thought about that concept.

MoKelly
They are fairly common. Families will do it as others have noted. Others do it for investing like first mentioned. I remember that there was a death of a woman that lived past 110. In the article it mentioned how she had lifetime rights to her house which was sold when she was in her 80s. The man who had bought her house died before she did!
 
   / Love Letters. Real Estate #146  
Life Estate is very common in Europe passing farm from one generation to next...

A big part is too avoid high taxes... either gift or inheritance which could be 50%

If parents give child farm with life Estate... the value of the gift is very small in the eyes of the taxman...

Other provision often included is if sold all siblings or first descendants share equally based on equal sibling share.

Another provision is any unmarried child has the right to stay at the farm with room and board in exchange for work and when no longer able becomes a ward of the farm...
 
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   / Love Letters. Real Estate #147  
I'm thinking that the property is sure to be worth more later when the last potential heir realizes they aren't going to inherit. At that time, someone suddenly disappointed that they didn't inherit what they expected, could easily make your life hell. I don't want to be in someone's crosshairs for the rest of my life. It isn't worth it.
I understand your point. Just wondered how far out you would carry it.

Or you just subscribe to the old adage that " No good deed goes unpunished" a lot more literally than I do.
 
   / Love Letters. Real Estate
  • Thread Starter
#148  
Got another real estate love letter yesterday, pinned up on a post at my entrance. I thought i was getting sued.

Can you believe it, the realtor has a customer that is looking for EXACTLY what i have. What he doesn't know is i have recently finished 2 buildings.

I told him about what had in it and to bring me an offer 20% over my investment.

He says he's coming today. I was a career salesman and a realtor briefly so, i go easy on them. Just trying to hustle a buck.
 
   / Love Letters. Real Estate #149  
Got another real estate love letter yesterday, pinned up on a post at my entrance. I thought i was getting sued.

Can you believe it, the realtor has a customer that is looking for EXACTLY what i have. What he doesn't know is i have recently finished 2 buildings.

I told him about what had in it and to bring me an offer 20% over my investment.

He says he's coming today. I was a career salesman and a realtor briefly so, i go easy on them. Just trying to hustle a buck.

Everyone has a price. So what do you do when they show up and are serious?
 
   / Love Letters. Real Estate #150  
"Did I say 20%? I meant 200%" :D
 

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