| You can find some of the most profitable real estate investing deals in probate real estate.
Several factors make them especially attractive for investment. Here is how you can make money investing in probate properties.
Probate properties are properties owned by a a dead person. The estate is inherited by heirs or beneficiaries once a person dies.
During the probate process, outstanding debts are settled and the balance released to beneficiaries. For example, if there is property to be inherited and some uncleared mortgage, the sale of the house will pay any outstanding debt and the balance goes to the beneficiaries.
During the probate process, the beneficiaries are responsible for expenses associated with real estate, such as making mortgage payments, maintenance such as cleaning the yard, etc. The property can therefore be a source of distress to the beneficiaries.
The court appoints an administrator (executor) to settle the estate. An attorney is the most common administrator. One of the beneficiaries can sometimes be appointed as the administrator. This is done to reduce legal expenses.
Beneficiaries are therefore motivated to sell fast to reduce expenses.
The estate will pay fees associated with selling the house and real estate commissions if they sell through a Realtor. These expenses can be minimized if they sell to a real estate investor.
Sometimes it is necessary to fix the house before it can be sold. If they cannot afford repairs, then a real estate investor may be the best buyer for such a property.
How to locate probate properties
All probates are recorded in the county court records. Three pieces of information are important: The deceased, the administrator and the beneficiaries.
When investing in probate real estate, you must periodically check court records for new filings.
You must then verify if they owned real estate from county recordings. Start with the name of the deceased. It could also be recorded in the name of the estate, e.g. John Doe.
Finding outstanding debts is also important. The beneficiaries or administrator may also provide this information.
Then you need to contact the administrator AND the beneficiaries. This is because one of the beneficiaries can be appointed to replace the attorney. This is very common.
This can also be helpful if you do not know the correct mailing address of the administrator.
You do not send postcards. Send a series of sympathetic letters every 30 days for 6 months. I give condolences for their loss and mention I'll be interested in buying any real estate they may be selling.
When the times comes to sell, I will be the first person they contact. Then I'll close the deal.
Follow the same steps to make a lot of profits in probate real estate.
Simon Macharia is a real estate investor who buys and sells houses in Texas. Learn how you can run your real estate investing business and automate it from an interactive real estate investor website from http://www.RealEstateInvestorsWebsites.net |
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