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| Title: Understanding Probate And Making Money In Probate Real Estate |
| Date Added: November 19, 2010 05:36:00 AM |
| Author: Simon Macharia |
| Category: Real Estate : Agents - United States |
| Probate properties are some of the most profitable real estate investing deals. Several factors make them especially attractive for investment. Here is how you can make money investing in probate properties. Probate properties are properties owned by a person who has died. Once a person dies, their estate is inherited by heirs or beneficiaries. During the probate process, outstanding debts are settled and the balance released to beneficiaries. For example, the a probate property will be sold to settle outstanding mortgage balance and the rest distributed to the beneficiaries. During the probate process, the beneficiaries are responsible for expenses associated with real estate, such as making mortgage payments, maintenance such as cleaning the yard, etc. The property can therefore cause distress to beneficiaries. The court appoints an administrator (executor) to settle the estate. Usually this is an attorney. In some estates, you may find one of the heirs has been appointed as the administrator. This especially happens because the beneficiaries want to reduce attorney expenses. It is in the best interests of the beneficiaries to sell the properties as fast as possible to minimize expenses and inherit some more. If they sell through a real estate agent, the estate will be responsible for all real estate commissions. They can minimize these if they sell to a real estate investor. Sometimes it is necessary to fix the house before it can be sold. If they cannot afford repairs, then a real estate investor may be the best buyer for such a property. How to locate probate properties All probates are recorded in the county court records. There are 3 sets of important information: The deceased, the administrator and the beneficiaries. When investing in probate real estate, you must periodically check court records for new filings. You must then verify if they owned real estate from county recordings. The name of the deceased is a good way to start. It could also be recorded in the name of the estate, e.g. John Doe. Finding outstanding debts is also important. If I cannot find this information from county records, I get it from the beneficiaries or administrator. Next, contact the administrator AND the beneficiaries. This is because the attorney can be replaced by one of the beneficiaries. This is very common.Also, if you do not have the correct addresses, any letters to the beneficiaries will find their way to the administrator of the estate. In probate real estate, you do not send I Buy Houses post cards. Send a series of sympathetic letters every 30 days for 6 months. I give condolences for their loss and mention I'll be interested in buying any real estate they may be selling. When it is time to sell, they will contact me. Then I'll close the deal.Follow the same steps to make a lot of profits in probate real estate.Simon Macharia is a real estate investor who buys and sells houses in Texas. Learn how you can run your real estate investing business and automate it from an interactive real estate investor website from http://www.RealEstateInvestorsWebsites.net |
