Wholesaling Probate Confusion

Wholesaling Probate Confusion

Investor · Connersville, IN · Member since 2014 · 28 posts · 4 votes

Hi Everybody, I'm new at the wholesaling process and I'm taking action step by step. I'm in the Las Vegas area and went down to Clerks Office, pulled a few probate leads, and sent out a handful of letters over the weekend. Just want to make sure I understand the process if anyone calls. 

1. Being named "Executor/Executrix" - Starts with Petition, then Hearing, then Order. 

2. Once Order from the court is complete that person has legal right to sell the property, BUT FIRST must list "Notice of Sale" in the paper (or some publication which they talk with their lawyer about doing) AND  a "Notice to Creditors" (which can be filed at the same time).

3.  I can put the house under contract.

But the more I look into it, the more I find things that might kill the deal like this:

 http://homeguides.sfgate.com/sell-real-estate-duri...

Where it looks like they have to advertise my offer and the court has to approve it or start an auction war. 

Or this one:  http://www.upnest.com/1/post/how-to-sell-a-house-d...

Where it says it MUST sell for 90% of the appraised value.

Am I wasting my time? 

Better question: Is there anyone in the Las Vegas market that is successfully doing these? I'm real good at fetching coffee.

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  • Rental Property Investor · Rockwall, TX · Member since 2015 · 891 posts · 701 votes
    9y

    @Robert Molloy

    The process you linked is correct, I found a property on the MLS a few weeks ago that I was interested in, but they wanted an all cash offer for the court plus it needs to go through the bidding process. Took about a week to get a hearing with the court. All contingencies must be cleared before the court date. The listing realtor assured me that nobody shows up for those things, but she was incorrect. The good news is, you can write into the contract to get your hard costs refunded from the seller.

    I think its highly unlikely that you'd be able to wholesale anything in probate. If you have a pile of cash and patience, I think you could probably close some deals and resell them for a reasonable profit.

    -Christopher

  • Investor · Connersville, IN · Member since 2014 · 28 posts · 4 votes
    9y

    @Christopher Brainard Thanks for the heads up, man! 

  • Yucaipa, CA · Member since 2010 · 137 posts · 96 votes
    9y

    @Robert Molloy  @Christopher Brainard   Selling probate property in Nevada does not necessarily mean court confirmation in probate court. You guys have got it wrong. 

    Since 2011 Nevada works under the Independent Administration of Estates Act which allows for those probates which are not contentious and all the heirs are in agreement that they can sell their property any way they chose. No 90% barriers, no realtors needed, no court auction and no court confirmation. In California, about 80% go through this process and my guess is it may be similar in Nevada.

    These probates are known to have full or independent authority. There still are procedures and notifications that go through the court but you're on your own.

    Therefore if you market to probates and get a contract signed on an off-market deal for a big discount you definitely can wholesale it.

  • Investor · Connersville, IN · Member since 2014 · 28 posts · 4 votes
    9y

    Thanks! @Guy Olds

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