Top 5 Probate Real Estate Investing Questions Answered

probate-real-estate

If you are a real estate investor in San Diego, then you are always looking for a better angle on the housing market. Would you be surprised to learn that there is an available market made up of motivated sellers of their houses, who will be willing and able to sell for a generous discount, and all of this in a segment where little to no competition exists, period?

Likely, your ready answer was “Isn’t everybody?

A number of investors in real estate are dying to share their personal secrets for purchasing probate real estate with you. Many of these expert investors say that probate real estate sales prove to be by far and away the best area in real estate, one in which you are capable of making the most generous profits possible.

1. What is Probate Real Estate Anyway?

After an individual has died, everything that he or she left behind typically finds its way to a probate court. An Executor, who is usually appointed by the case presiding judge, becomes responsible for ensuring that the late individual’s possessions are fairly shared out, as per the deceased person’s will. The judge could furthermore allocate additional powers to this Executor, if the estate merits it.

2. What Are the Reasons that the Probate Property Owners Turn out to Be Such Motivated Sellers?

The answer to this question involves standing in the shoes of a potential inheritor. Picture if you will, that in a number of cases, an inheriting heir is actually receiving a burden in the form of this property. A number of pressing things must be taken care of, including repairs which have to be made, estate taxes that are required to be paid, and from time to time, a first or second mortgage that has to be paid on time. Immediate cash in hand is likely more necessary for this inheritor than is anything else at this point.

Now, on top of this, throw into the mix a number of equally sharing inheritors, all of whom are partial owners. A number of them live across the country, to make things more complicated. You see how you arrive at a place where selling the house, and quickly too, proves to be not only the smartest decision, but often times the only means of ensuring that each joint inheritor receives their equal portion of the estate in question.

3. Why Is It Legal to Sell Property Which Is Being Probated?

probate-real-estateThere is a huge misconception surrounding this type of property sales that needs to be cleared up first. The myth circulating the imaginations of most uninitiated Americans states that it proves to be very challenging, or even impossible, to sell probate real estate. The reality lies in the fact that generally the Estate Executor is given the powers to move forward with a sale. This of course assumes that he has the mutual consent of any and all of the estate’s heirs. From time to time, she or he might also require the consent of the presiding court. Still, a judge is most likely going to sign off on the sale if all of the heirs agree to it. You ought to look into your particular state’s laws to see about any rules and regulations on the matter. There are states which require that the probate sale be handled via a licensed Realtor.

4. How Does One Track Down Properties in Probate?

All that is needed is a bit of investigating to come up with the names of probate owners who are willing to sell their property and as fast as possible. Some research in your area courthouse will yield up to you a full list of any and all wills which have been offered for probate. This is because wills in probate are considered to be public records. Additional research gives you records of deeds to properties held in a person’s name.

5. How Should One Get in Touch with Individuals Concerning Purchasing their Property?

Different from foreclosure sales, in which a homeowner is being forced to sell out against their wishes, with probates, the sellers want to sell the property, so they can access the money quickly. You might place a phone call, send out a probate mailer gently notifying the heirs of your interest in the property, or even go to see the probate Executor in person.

Do not be intimidated, since you are offering them an answer to their pressing needs, money in their needy hands. Because of this, you will commonly find that such individuals will sometimes accept an offer valued at seventy-five percent of the home’s perceived market worth. In this way, they get their cash fast, so they should be willing to go to the ends of the earth to make sure that the sale goes through without glitches and holdups.

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About Robb Bailey

Robb Bailey is a real estate investor, entrepreneur and business consultant living in San Diego, California. Red Trolley Homes was started in 2009 and is run by Robb and his staff in Ocean Beach, investing in properties nation-wide. You can read more about Robb and his various businesses at RobbBailey.com.

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