How To Profit From Probate Real Estate

Some of the most profitable real estate investing deals you can do are in probate properties.

 They are especially attractive due to several factors.   The following is a brief summary of how you can make money in probate real estate investing.

 Probate properties are those properties whose owner has died.  Beneficiaries or heirs inherit probate properties once a person dies.

The probate process involves clearing the outstanding debts and releasing the remaining to the heirs.   For example, a house in probate may be sold, the outstanding mortgages cleared and the rest distributed to the beneficiaries.

 The estate is responsible for all expenses such as cleaning the yard, utility bills, maintenance, etc.   The property can therefore cause distress to beneficiaries.

 The court appoints an administrator (executor) to settle the estate. In most cases, this is usually an attorney.  In some estates, you may find one of the heirs has been 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 Realtor commissions if they sell through a Realtor.   Selling to a real estate investor will minimize these costs for them.

 Sometimes they need to fix the house before they can sell it.  If they cannot afford repairs, then a real estate investor may be the best buyer for such a property.

How to locate probate properties
  County court records record all probates. There are 3 sets of important information: 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 must then verify if they owned real estate from county recordings.   Start with the name of the deceased.  It could also be recorded in the name of the estate, e.g. John Doe.

Next you may find the outstanding debts or mortgages on the real estate.   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 also helps in case you do not have the correct mailing address.

 In probate real estate, you do not send I Buy Houses post cards.   Send a series of sympathetic letters every 30 days for 6 months.  I give condolences for their loss and mention I'll be interested in buying any real estate they may be selling.
 
 They will contact me when the time comes to sell.   Then I'll close the deal.

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