Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got quick video on the basics to investing in Probates.
Probate Interviews: http://www.probateinterviews.com/
What are Probates?
- probate refers to the method by which your estate is administered and processed through the legal system
- general administering of a deceased person's will or the estate of a deceased person without a will
- court appoints an executor named in the will
- administrator – if no will
- responsibilities
- collecting assets
- paying liabilities that remain on the estate
- after liabilities paid – distribution of the assets according to the will
- usually sold as-is
Why Invest in Probates?
- heirs are usually motivated
- house payments
- too many repairs
- legal fees
- lack of experience
- time consuming – may take several months – paperwork and legal issues
- emotional attachment/detachment
- stressful for family
- lots of ‘out of state' situations
- properties are usually in good shape
How to Find Probate Investments
- Newspaper/BlueSheets – obituaries
- MLS
- Court Houses – probate division – past week – or may need to go back 2-3 months
- Records – deceased person's name, last known address, beneficiaries, lawyers, office address
- Marketing to Probate Executors
- Letter of condolence – follow-up call
- Mind everything you say – dealing with grieving family
- Offer assistance and follow-up – tact
- Offer free info on charity donations – rapport
- Mention how you can help – clearing the house, prepping for sale, what they'll make, etc…
- Assess the situation – like any FSBO, go through your due diligence
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- market analysis – cma reports
- identify liens, taxes, etc… – usually covered by seller during probate process
- smart to have funds in order, decisions are made usually on spot
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Each state has a ‘Probate' process implemented and while all differ to a certain degree the basic guidelines are still the same: evaluate ALL assets of an estate to satisfy creditor's claims. Probates, although seem unappealing to many investors, they offer a great opportunity to work with motivated sellers. The key to Probates is tact. You're practically buying a home from a person who is grieving a lost family member. The more you are able to relate or sympathize, the less threatened the sellers will be, and will more likely consider you over a money hungry investor.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.
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