3AM

It was 3AM when the email popped up. I was dead asleep.

But desperate property holders reach out late at night – when the weight of their problems feels heaviest. This one was from Heather, and she was about to lose her grandparents' home to a tax sale in just three days.

The next morning, I got the full story. Heather was battling alcoholism. She'd already lost her husband, her children, and most of her other family ties. Now she was about to lose what little she had left – her home – and be kicked out onto the streets.

Most investors would take all this in and think to themselves, “I should be able to buy Heather’s property for a fraction of what I would normally offer.” But after some time in this business, I've learned something crucial. You’re better off letting distressed property tell you what’s important to them and what they need.

I gleaned from my conversations with Heather that her greatest source of distress was knowing that she was going to be forcibly removed from her home soon but not knowing when or how or by who.

I told Heather something that gave her the first spark of hope she'd felt in months. Not only could we stop the tax sale, but we could structure her exit in a way that gave her back some control. She hadn’t heard that before.

The solution? A basic leaseback agreement.

I know what you're thinking. A leaseback agreement? That's real estate 101. But, in distressed situations, these "basic" tools can work miracles for property owners.

For Heather, this wasn't just a little extra time in her family home. It was a lifeline. Instead of facing sudden eviction, she now had:

• Clear terms for how long she could stay

• A defined move-out date she helped choose

• Time to gather family pictures and keepsakes

• A structured plan to transition out of the house

We still had to reach an agreement on price and navigate some significant title issues. But that simple leaseback agreement transformed Heather's situation from chaos to certainty. It’s the reason she stepped out of the path of that oncoming train.

The lesson here is that money isn't always the primary motivator. Sometimes, it's not even in the top three.

The lesson here is that money isn't always the primary motivator. Sometimes, it's not even in the top three. In Heather's case, the certainty of knowing exactly when and how she would leave was worth more than any discount we could have asked for.

Before you construct your next offer for a distressed homeowner, ask yourself: Did I fully explore their current situation? Do I really understand how they feel about their future situation?

Because here's the truth: A "good deal" in distressed real estate isn't about getting the right price — it's about solving the right problem.

Your partner in creative solutions,
Jeremy