How to Profit with Real Estate Investing from Probate Properties
Probate is one opportunity for real estate investors and can be a win for both the seller and the investor. Real estate investing encompasses a variety of avenues. Probate real estate is a legal process that occurs after a person is deceased to manage the person’s assets. During probate, all debts are paid and the remaining value of the deceased person’s estate is distributed to the heirs. For real estate investors, probate estates present a chance to purchase investment properties.
To locate potential probate investment properties, periodically check the county records. Each county maintains a list of all probates. For probate estates, the deceased, administrator and benefactors are listed with the record. This information gives you a starting point for identifying properties that fit in your real estate investing portfolio.
If you find a property you’re interested in, remember to be sensitive to the fact that the people involved have experienced a loss. This is not the type of deal to be aggressive with. Instead, offer your condolences and inquire if the heirs plan to sell the property. It is okay to highlight the benefits of selling a probate property to a real estate investor but be respectful.
Benefits of Probate Real Estate Investment
Investing in probate properties can benefit both the seller and the investor. Oftentimes, the heirs would rather have the money from the sale of the property than to take possession of the property. By offering to buy the probate property, you may be helping the heir streamline the sale’s process.
If the heir sells the property to a real estate investor, they can often save money. First, if the sale is a direct transaction, the heir may avoid the costly commission from a real estate agent. Also, many homes in probate need upgrades or repairs before they can be listed for sale. When a real estate investor purchases the property, it is often for a flip or to upgrade the property themselves. This can save the heirs a lot of hassle and headache. It also makes the process of selling the home move much more quickly.
Buying probate real estate also benefits the real estate investor. Because the heir may want the financial benefit versus owning the property, probate properties may be sold below market value. While the properties likely need work, as a real estate investor, you should have the knowledge and tools available to understand how to affordably and quickly repair or upgrade the property. With probate properties, there is often no mortgage making the transaction smoother.
Probate Properties – A Smart Investment
It is smart to take the time to investigate probate properties. Sellers can be very motivated because they don’t want the responsibility of caring for the property. Also, you can feel good that you are using your real estate expertise to do the work for the property that the heirs may not have the time or resources to manage.
Additionally, probate real estate investing is often an overlooked area. To be successful in this area of real estate investing, always be respectful, check county records frequently and follow the legal steps required to take ownership of the property.
Learn more about real estate investing for probate and other properties. Laura Alamery is an expert real estate investor, teacher and mentor that offers classes, webinars and one-on-one coaching to help you succeed in real estate investing, including probate properties.