Exit Strategy for Probate Deals

[Rich J.]

I am interested in finding out what is the best exit strategy to consider when working with the personal representative of probate properties. I've had contact with merely a dozen or so personal reps with the idea of wholesaling to another investor, but I am curious as to what percentage of probate deals can be expected using other strategies such as seller-financing, lease-option, etc. and what tips you off that will determine the best strategy to use.

[Brian P.]

There is no one size fits all answer to probates. You can put them into groups of typical types but to me each is going into new territory. My first goal is rapport and finding out the situation and asking the executor what they would really like to see happen. From there I see what my options are and the best way to proceed, or at least what seems to be the best way, sometimes I hit a stop sign and have to make a turn. There is no exit strategy that different than any other deal, just in this case the owner is dead and your dealing with others.

You need to have many tools in you toolbelt and have the right one available. I have bought entire estates, the garbage can, everything so all the heir had to do was sign and get a check, not my favorite but profitable. Just got nailed once when I thought the house was full of antiques but they were all fakes, mostly newer reproductions, the old woman was always telling her nieces to take good care of her very old and valuable antiques from her parents and grandparents homes. My antique dealer was on vacation and it seemed legit. Nice profit on house but big loss on the personal property and extra time to handle.

Many times seller financing and a good deal on property needing rehab or many repairs. Last one provided the rehab loan as a second, as well as carrying the first for the full price. I found end buyer with new loan and closed in 60 days at FMV.

The prime stuff usually gets listed with a realtor and because I was one I could offer that. I still can because I just refer to a few agents I know well and get a referral fee paid to my home state office. Be nice if I can ever get back there.