Can anyone explain how probate real estate investing works?
aston4587 asked:
Hello
I have been reading about some real estate courses where they say that probate real estaet investing work sbecause the heirs are motivated to sell to pay of any property debts and will sell quickly for huge discount.
My question is why don’t they just list it with an agent?
If it’s such a discount someone will buy it?
Thanks
aston
Hello
I have been reading about some real estate courses where they say that probate real estaet investing work sbecause the heirs are motivated to sell to pay of any property debts and will sell quickly for huge discount.
My question is why don’t they just list it with an agent?
If it’s such a discount someone will buy it?
Thanks
aston
April 2nd, 2009 at 12:49 am
You have great questions, too many for the “courses’ you are talking about. Of course, heirs list their homes with Realtors like anyone else and expect to get top dollar- no one gives their houses away.
The course sponsors make their money selling you the course, if their plan was so great, why would they be telling you when they could be doing it full time and making boatloads more money than selling courses!
April 2nd, 2009 at 6:22 am
While an executor or personal representative for an estate may need to sell an estate’s assets, such as real estate to pay off the estate’s debt, most already know an agent or 2.
To target these as potential home sellers is pretty much the equivilent of ambulance chasing. And as BrokerPro said, if it’s so profitable & these homes are offered at such a discount, why isn’t the guy snatching up these homes instead of selling you his course and giving away his “secrets”.
Plus most people that are appointed as an executor are not stupid & actually, part of the probate & estate process requires that all the estates assets be valued. For real estate, this needs to be in writing, such as a CMA from a real estate agent. The entire estate must be valued & assets may have to be sold, or may not have to be sold.
My mother died with 1.5+ mill in real estate. We sold one commercial building & then a recreational lot, but are holding the other 3 properties as they are owned free & clear. Doesn’t cost us but taxes, insurance and utilities. No mortgages.
April 3rd, 2009 at 7:38 am
Using probate is just another way of finding a possible motivated seller.
It is not a business model but rather a lead source.
With the exception of some issues your closing attorney can handle for you.
It is the same as dealing with any other seller.
One thing to remember if it’s in probate the executor has to sign the contracts. If it not then ALL the heirs have to sign the contracts.
And that goes for the closing documents as well.
One thing I look for is when the executor is out of state. Most of the time it’s a burden on them and they just want dump it.
Like anything in real estate way to much to answer here quickly.
I suggest you get some good training or mentor.
Hope this helps
Jordon Bradley