Probate Real Estate Investing is difficult for ninety nine percent of Investors.
Probate real estate investing is a little known secret that can yield substantial return on investment. This type of transaction involves purchasing real estate from heirs who have inheritance property held in probate. Oftentimes, real estate can be purchased significantly under market value when beneficiaries need immediate cash.
Probate real estate investing does not require any special skills or training. However, investors engaging in this type of investment should possess good communication and negotiation skills. Since investors are working with people who have recently lost a loved one, it is important to approach the subject in a gentle and compassionate manner.
Probate real estate can be located by visiting the local courthouse. When a person dies, their Last Will and Testament is submitted to the probate court. An Estate Executor is appointed in the Will. It is the duty of the Executor to inventory assets and ensure property is distributed according to the decedent's wishes. Wills are a matter of public record and anyone who wants to access them can do so.
When visiting the courthouse, take along a notepad or laptop computer to record necessary information. First, review Wills presented to probate and seek out estates valued at $100,000 or more. Record all pertinent information about the decedent and Estate Executor. Next, search records of deeds to locate properties held in the decedent's name.
To become proficient in probate real estate investing, you'll need to do a bit of detective work. By connecting the dots with Wills and Deeds, you can learn how to spot Estate Administrators eager to liquidate real estate held in probate.
If the property has a mortgage, the estate must continue making payments during probate. Since the decedent's bank accounts are frozen, beneficiaries may have to pay out of pocket. In many instances, they cannot afford to do so. Properties with a second mortgage attached can be an even bigger headache for heirs.
Take time to review the information and look for problem areas. Then determine what solution you can offer. Contact the Estate Executor via mail, by phone or in person. Offer your condolences for their loss and explain why you are contacting them.
Keep in mind if multiple heirs exist, they must all be in agreement to sell probate real estate. In some instances, the estate may need to obtain permission from the probate judge.
Last, but not least, do not be a "probate-chaser" and prey on people who are desperate. Make a fair offer and create a win-win situation for all parties involved. Doing so can help you develop a profitable probate real estate investing business.