Has Anyone Done Something Similar

[Stephen J. Vertin MAI]

I have a client who owned an auto center for 35-years. He has 4 restored 2-door 57 Chevy's and a number of other classic cars (but I love 57's). He has had four heart attacks in the last two years. Wanted to know what his auto center was worth for estate purposes. He believes he may pass this year. He paid for a restricted report for planning and we both went are separate ways.

Two weeks later (this has all happened since the first of 2019) the city wants to take his entire property in eminent domain (ED) paying him pennies on the dollar. He cant use the restricted given its purpose.......etc so he wanted to know if I could update the report and apply the ED as intent with testimony. So, I give him a price. He said he could not afford it., he has not worked in two years and only has a small fixed income (unknown to me his kids paid for the report).

Here is the kicker, he than says what if I put one of my 57's up as collateral. Than he says you select which one you want and if I die during the process you (meaning me) keep the car. I told him I would think about but my attorney would have to make up the contract. He said no problem. Has anyone ever done this before? These cars are sweet and I have always been a car freak. I would take it in a heart beat as my fee (no pun intended)..

 

[Deleted member 152047]

As long as there aren't contingencies involved, I don't see why not. However, you might phase the assignment and ask that after the report is done (1st phase), you would receive payment and continue to provide services per the phased agreement until the matter is settled. If he passes and you haven't taken possession, it could get messy.

 

[Peter LeQuire]

If the restoration(s) are good, one of the cars sounds like a good fee. Hemmings Motor News is probably the easiest to get to price information. I've taken some not-cash compensation for appraisals in the past. (Establishing a value that our good friends who tax incomes probably deserves some documentation - my good friend Prudence says so.

 

[Rlong]

Have not done it, but probably would, it is simply a "retainer" (nothing sez it has to be US Dollars). Sounds like a fun "gamble" both parties are willing to take!
Bob in CO

 

[Terrel L. Shields]

I see no reason why he could not use the restricted report as evidence of its value...in fact, should be superior to one done for him became it is not tainted as being created to favor an outcome.

 

[Stephen J. Vertin MAI]

No there are no contingency deals, it is simply a retainer. Terrel that is Illinois and most of its local governments main strategy. Bleed you dry through legal fees so you can not longer fight them. They do that by making sure any fighting back is totally in order. The restricted report states the intent is for my clients use only and for estate planning. The lead attorney for eminent domain (taker). Said the purpose and use/user of the report is not acceptable for eminent domain and he is right. All he has to do is ask "can the Scope of Work change values?" Thereafter, we are toast. While USPAP is trying to change the one user rule for restricted reports, it is not there yet. It would have been good, had the USPAP changed and if I stated the report was for "internal money management decisions" but we all know the reality.

Anyway, I was excited about this and made the mistake of telling the boss (my wife of 25-years) and she said "Have you turned your business into a pawn shop?" Needless to say she is generally right so I have decided not to do the deal. The kid in me regrets this but ultimately I do not run a pawn shop and I am currently fairly busy and would have to clean-out my garage (which would take a day or two), if something did happen....so this is going to be the one that got away. Further, I have not heard back from the client. However, I did give him the name of a hard money lender who called me back asking for contact info. He is probably going to get a loan which is good, that way he will be like any other client.

 

[ICT RE]

If you decline it seems like a clear missed opportunity if from nothing else than a purely financial perspective. I don’t know commercial fees all that well, but I’m guessing your fee would most likely fall somewhere in the $2K-$4K range. (If I’m wrong feel free to tell me.) Even a driver-level restored and properly running Tri-Five would be worth a great deal more than that - multiples.

*Park it in your garage and enjoy it on nice days.
*Sell it wholesale to a classic car dealer.
*Consign it for sale with a classic car dealer.

I struggle to come up with logical reasons why a person wouldn’t take the offer, assuming certain condition and mechanical caveats. Seems like a fantastic offer.

 

[Deleted member 152047]

If you decline it seems like a clear missed opportunity if from nothing else than a purely financial perspective. I don’t know commercial fees all that well, but I’m guessing your fee would most likely fall somewhere in the $2K-$4K range. (If I’m wrong feel free to tell me.) Even a driver-level restored and properly running Tri-Five would be worth a great deal more than that - multiples.

*Park it in your garage and enjoy it on nice days.
*Sell it wholesale to a classic car dealer.
*Consign it for sale with a classic car dealer.

I struggle to come up with logical reasons why a person wouldn’t take the offer, assuming certain condition and mechanical caveats. Seems like a fantastic offer.

Eminent Domain fees can reach $10-20k easily and are often much more than that.

 

[ICT RE]

Eminent Domain fees can reach $10-20k easily and are often much more than that.

Ah, I did miss that detail in the OP.

 

[Carlos Danger]

You just have to have her sit in the car for a minute and she will change her mind.