Need to brainstorm approaching probate and divorce attorneys.

[Dave Bond]

Ok, I'm sitting here completely drawing a blank on coming up with a basic script to approach probate and divorce attorneys.  I can't remember which podcast but I remember one of the interviewees had a good basic script.  Anybody have idea's to help me get the creative juices flowing on creating an environment where I can get attorneys receptive to helping me by finding a way to articulate helping them?

[Brian Gibbons]

@Dave Bond

Probate Attorneys:

Its been my experience that they do not like wholesalers, and they have listing agents in their Rolodex.

I like showing them "Cooperative Rehab Model", 

This is where you cooperate with the seller or the heirs on a minor rehab, it doesn't need a lot of work but it does need perhaps a new kitchen or updated bathrooms and paint and carpet and clean up.

Comparing it with a wholesaling deal let's say you had a 

-$200,000 house that you $20,000 in work. 

Wholesaling Offer - 70% of ARV minus repairs is 140,000 - 20,000 equals 120,000 minus a wholesaling fee for $10,000 equals $110,000 net to the seller.

This is a CRAP offer that will not get accepted and the probate attorney will not like doing business with you because he has a fiduciary duty to protect his heirs from a bad deal.

So how can you get the heirs more money? Well if you do a "cooperative rehab with seller financing", you first figure out "the cost to sell the house" after you fix it using an agent, and I use 10%costs to sell

so 10% of $200,000 is $20,000 (commissions, closing costs and wiggle room)

Next subtract the cost the rehab and the cost of the private lender money you need to do the rehab, I don't like hard money so I'd rather pay 10% interest to a private lender and pay them in three months instead of 12 months, and keep rolling that money over for the private lender, and I like self-directed IRAs using custodians like www.TrustEtc.com

Last you need to figure out is how much money you going to make on this deal and I like to keep it not a lot of money may be do a few deals at 5,000 to 7000 profit, you can increase your profit later once you get some deals done and you make the probate attorney happy.

The contract structure of this is using a fist note as a single payment first position, like a balloon payment, and putting a second mortgage on for the private lender and the interest.

So you the buyer purchase on seller financing and give a  note for let's say 148,000, put $22,000 in second position for the private lender including interest, and you sell it for $200,000, pay 6% commission to the agent and 2% closing costs and 2% wiggle room.
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Regarding divorce attorneys, many times people cannot afford to stay in the house wife where the husband, and many times is very little equity, so you might be able to buy the house on "subject to" or a wrap or to a lease option assignment. 

You need to let the divorce attorney no that you can assist their clients if they need to move to another house you can get them into another house at a cheaper or affordable rent.

I write about these and more on

https://www.biggerpockets.com/blogs/3-reiskills-an...