How To Profit From Probate Real Estate
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How To Profit From Probate Real Estate
| Date Added: November 17, 2010 01:00:15 PM |
| Author: shakir@resellerservers.net |
| Category: Real estate & Construction |
| Probate properties are some of the most profitable real estate investing deals. They are especially attractive due to several factors. This article walks you through how to make money in probate real estate. Probate properties are properties titled to a person who is deceased. The estate is inherited by heirs or beneficiaries once a person dies. During the probate process, outstanding debts are settled and the balance released to beneficiaries. For example, a house in probate may be sold, the outstanding mortgages cleared 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. Probate property can therefore be a source of distress. An administrator (executor) is appointed to settle the estate. Usually this is an attorney. One of the beneficiaries can sometimes be 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. The estate will pay fees associated with selling the house and real estate commissions if they sell through a Realtor. 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 to fix it up, selling to a real estate investor may be their best choice. How to locate probate real estate All probates are recorded in the county court records. Three pieces of information are important: The deceased, the administrator and the beneficiaries. You must periodically check court records for new probate filings if you are investing in these properties. You then need to check if they own real estate from the county court records. Start with the name of the deceased. Sometimes, the property may be in the name of the estate, such as John Doe Estate. Finding outstanding debts is also important. If I cannot find this information from county records, I get it from the beneficiaries or administrator. Then you need to contact the administrator AND the beneficiaries. This is because the attorney can be replaced by one of the beneficiaries. This is very common. This can also be helpful if you do not know the correct mailing address of the administrator. You do not send postcards. Send a series of sympathetic letters every 30 days for 6 months. I offer my sympathy for their loss and express to buy any probate properties they may have. When the times comes to sell, I will be the first person they contact. Then I will make the deal happen. 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 |
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