Most real estate investors don't find out a lot about working in probate as an investing opportunity. You'll find numerous more gurus instructing how to make cash in short sale investing than you will with probate right now because foreclosure properties are one of the red hot opportunities to be investing in. However, in spite of the current sagging market, there are SEVEN TIMES more leads in probate than there are in foreclosure and there are even fewer contenders. There's a ton of money waiting to be created in probate investing, but there are also additional measures that need to be considered when analyzing deals. Here are a few ways the real estate heavyweight can realize a potentially knockout probate opportunity.
The Heirs And/Or Personal Representative Lives Out of State
When the representative resides an extended distance away from the property in question, it quickly becomes a much larger hardship for them to contend with everything. After all, they have a life too, and having homes to handle out of state puts a huge stress on them. If you step in and supply a resolution, they will be very happy to work with you to solve the problem.
The family being out of state produces a corresponding state of affairs. They usually don't know how difficult it is for the probate rep. They are obviously very motivated sellers: they just want their cash now.
There Are Multi Unit or Rental Properties in The Estate
Heirs may decide to keep the personal residence, but if the deceased had any investment properties, the family will, 99% of the time, want to sell them. Why? Well, while the heirs may very well understand the possible source for income that rentals and the like furnish, they usually just don't want to bother with them. Remember, you CHOSE to get into real estate investing; they are having it dropped on them. Almost always they will simply wish to dispose of the extended real estate portfolio and get what cash they can.
Private Notes in The Estate
There's more than just real estate that is available in probate. Paper funding is BIG business and private notes that are held by the estate can be had at steep discount rates, for reasons similar to those for rental and multi unit properties cited above. Discounts from 30% to 50% are NOT uncommon!
Probate offers a hot opportunity for real estate heavyweights who know how to work the deals. It provides a extensive and GROWING number of leads and there are still comparatively few investors who work in this niche. The know-how you need to work these deals is both easy to acquire and put into practice. Are you ready to start taking your share of this growing market?
This article is based a chapter of book Be a Real Estate Heavyweight, entitled Building Wealth with Probates by Arcadio Diaz and Eric Stevens. For more information on the book, be sure to check out
www.RealEstateHeavyweight.com.
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