Probate real estate is property that is left behind when someone passes away. Almost all property and assets of a deceased person has to go through probate because of laws set up by the government. Probate helps the government, local governments and creditors ensure that they get money owed to them and taxes from the estate before it is divided up and given to heirs. In some cases assets go to probate because there is no will and the court is responsible for ensuring it is divided among heirs.
Probate real estate can be an amazing real estate find. It is usually rather simple to make an offer, get approval from the court and close the deal with heirs. Not many people get into probate real estate because they either do not know it is out there or they think it is too complex to ever pay off. This type of real estate is actually rather easy to get into and can pay off quite well in the end.
First Step of Probate Investing
The first thing to do in probate investing is to find some real estate. This is the most challenging part, but the good news is that it is simple. You can do a few different things to find probate real estate. You can contact local probate attorneys and give them you information so they can direct clients to you. You can advertise in local papers or online. You can also check the local courthouse for wills and deeds on property from recently deceased individuals. All these options will lead you to a nice flow of properties that are just waiting to be purchased.
Why People Sell
You will find that in probate real estate people are ready and more than willing to sell. These people have inherited real estate that they probably do not need or want. They have inherited mortgages and maintenance costs that they often do not want. They are ready to sell and get the money instead of holding onto property they do not need. They take no convincing to get them to sell and usually they will sell at prices far below market value, so you get an amazing deal. Another good thing is this type of transaction is usually pushed through quickly so no wait time for closing either.
Who to Contact
once you find property you want to buy you can contact the heir directly. You may have to contact an attorney or even work with a real estate agent. You can usually make a few quick calls and find who you need to deal with in order to purchase the property. In some cases you may need the court's permission, but this usually happens quickly as long as all the heirs are willing to sell and agree to the sale.
Things to Keep in Mind
Probate real estate usually moves fast, so be ready. You should try to have cash because cash gets the deal closed faster. You should be willing to negotiate a bit to find the right price. Don't worry, though, even if they want a little more than you wanted to offer, it should still be a great price that is below market value. Do not worry about having to go to court. This does not happen too often and when it does the process is simple and fast. All that is needed is the judge to okay the deal and you are good to go.
You will be working with motivated sellers who have pretty nice properties for sale. You may even find some hidden treasures along the way since many homes come with belongings inside that can become a nice way to make extra income. You could get a home that needs little or no rehab and be able to sell it for a nice profit on your investment. Even if you do have to do repairs you will probably end up with a home that is ready to sell at a price that is still lower than market value and gets you a nice profit. The whole process of probate real estate is a pretty good deal. It is a market that is flooded with new properties everyday and that will only get bigger, so now is a great time to get into probate investing.
Duncan Wierman is a full time investor in Greenville, SC. After spending $1,000's on courses and seminars that did not work (and were nothing more than sales pitches for more product, he finally decided enough was enough and release his own Hype free Probate Investing course and software to help people succeed. http://www.ProbateProfitsSystem.com