Probate Real Estate questions have been coming in so it appears my goal of exposing this opportunity is starting to take off. Again, as a Probate Agent for the last 23 years I am now semi retiring and will be teaching and coaching more. I welcome your questions regarding Probate Homes for Investors or Real Estate Agents and have even given a Active Rain Member special deal so check it out.
One of the questions which comes in often is from investors and agents who don’t want to wait 4 months to close of deal with all the court red tape and procedures required. First, if you go through the old court confirmation process which requires a court appraisal (joke!), a petition to the court to confirm the sale 6-8 weeks, plus the court overbid process (you can loose the deal there) then yes it will take you 3-4 months to close the deal. This is not the way to do Probate Investing so please make sure you understand.
In California we have the I.A.E.A probate process which for real estate purposes allows us to take the estate home out of the court supervised probate process and close quick. I usually write our purchases or if I’m representing an estate as the listing agent for 30 days and we can close. With the craziness of the mortgage world today you might want to write 45 days but as far as Probate Real Estate is concerned we can close in 30 days or like one says: 31 Days to Probate Profits lol. My point is as a Investor or Probate Agent you must understand the rules and how to make them work for your business. I have been doing this for 23 years and I’m still amazed more aren’t into this.
What I will say is during the 90’s I was pretty much doing this all by myself in my market area and now in the 2000’s there are many more trying to break into this niche. You can buy many books on probate these days but again I would check out who the author is and make sure they have done this for their living and just aren’t book and tape marketeers. I have seen books for $10 to $3000 and all I can say is I have students who have come to me after trying these other systems, mostly because of price ($10 Cheap) or some hyped up seminar they attended but if you have to be sold or just because it’s the cheapest then you are really missing the boat.
Probate Real Estate is a fantastic place for both investors and those who want to be Probate Agents. I am more active this year then any of my previous 23 years working the Probate niche. If you are an investor you are probably finding it very hard to land a good wholesale property on the MLS or direct to home owners as there just isn’t much inventory and what is available sells in a week with multiple offers. How can you compete with this if you are looking for a wholesale deal; you can’t. Real Estate agents working with FHA buyers who need closing help from the seller? Good Luck!. I have had several of these buyers and it took us a year to get into a property in our area because inventory is low with multiple on everything including cash buyers.
One answer is to work Probate Homes as I have for many years. No competition as many times I don’t list the probate I just match my buyer to the estate and do the deal and receive a 4-6% commission. The estate has the property sold without red tape and having to go through the listing process plus the buyer is able to buy a home and not compete with investors. I can usually have closing paid for my buyers and make it a win/win for both sides.
So, don’t go under the impression it will take 3-4 months to close your deal if you aren’t overbid in court but you need to understand the process and make it work for you. I love to chat about Probate Real Estate so contact me by phone or email and let’s discuss it