We are always looking to benefit more financially from Real Estate. We are all looking for ways to find properties and how to finance them. One area that is not pursued by most investors is properties that go into probate after the owner passes on. This is happening every day and is a great source to help the heirs of that property. Probate can be a long drawn out process including numerous court hearings and delays and can be a frustrating process for an investor. However, once a system is set up to approach probate properties efficiently it can be a profitable way of acquiring real estate at a discount.
2 primary ways to approach probate as an investor:
Attend court hearings and overbid on property that is already under contract.
-Probate properties that are under contract will be publicly published.
-Anyone can attend these proceedings and “overbid” the price of the current contract
-It is difficult to get properties at a significant discount in this manner.
Step One-Gather information on who has passed away and if they owned property:
Find Death Notices & collect the executors name and File #. Make sure the executor has “full authority” and can sell the property “with or without notice”.
This allows the executor to sell the property to us before it finalizes in the court probate process.
Step Two-Marketing:
Send a letter to the Executor and Heirs to see if they are motivated to sell the property at a discount quickly.
Step Three-Analyze the property and prepare the offer:
Find Comps, determine repairs, determine the discounted purchase price.
Step Four-Make the Offer:
Present the offer and be prepared to discuss other options
Summary:
Use the benefits of finding properties in probate. Look at the numbers and make it happen.
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