Probate Real Estate – 30 Day Escrows

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

Probate Real Estate – Where Do You Find the Petitioners Phone Number?

In my Probate Real Estate business tracks every probate file opened each week which has Probate Real Estate. As a Probate Agent I pride myself as being one of the top Probate Guy’s around for the last 22+ years. I don’t sell book and tapes for a living; I buy and sell probate homes and if you really check all those out there with a probate system you will probably find most have done this maybe once if at all. This is why I’m recommended by those who check systems and so called “Gurus”. It’s your money so just beware.

This is work, not some magic formula where estates are going to have their arms open for you to come and buyer the estate property and a great wholesale price or if you are a agent, just sign a listing. Yes this can happen here and there but if you are serious about this business and want to do deals monthly you have to know what you are doing, have a business plan which has been tested and then a never give up attitude. On the other hand for those who can do this real estate niche the rewards are very worthwhile. I have enjoy many years of probate investing plus taking listings and making sales to end user buyers without much competition.

In our Probate Real Estate research most of the time the petitioners (executor to be) will have his phone number listed but in a place you must know how to find. This is such a great tool for us as after we send our marketing peace we follow up with a phone call within 3-5 days and this is when we start to build our relationship with the petitioner. This will be early in the probate process and we must be the first one to contact the estate as our success rate to earn on the probate will be greatly enhance. Knowing where the phone number is and knowing what to say to the estate is critical for your success as a Probate Investor or Probate Agent. If not, you are spinning your wheels and I take this business very seriously.

There are also many systems out there now (some of my own students are selling my system repacked lol) and anyone of them will help you find the probate court file where everything starts. But this is just the tip of the iceberg. You must know how to use the information to control the petitioner, estate heirs and attorney. If not you are going to only find a few probates here and there. There is a way to do this business which I have fined tuned over the years which enhances my success. In the early days (80’s and 90’s) I was receiving about 3 leads per month from the 100 probate new cases with real estate and I would usually turn one deal from these leads or 12 to 15 per year. Now, my team grinds every lead not just for those who will sell wholesale to us but for sales to end users buyers (5% discount) and for listings on estates who want help on reaching a retail sell. Who better than the guy and team who knows the probate laws and how to use them. I have a title person on my team, escrow coordinator and attorney plus my agents all trained on what I do, how I do it and this is what separates those who have done maybe one probate flip to those who make a living at it.

I love Probate Real Estate and I’m very excited my new book “Six Figure Probate Agent” is about to be released. I don’t sell these in stores only through my website so you will have to contact me if you are interested. I’m giving back these days and hopefully will move into the educational end of Probate Real Estate Investing for Investors (Flipping) and also for agents who want another revenue source form Probates

Probate Real Estate – Truth About Deposits

Truth About Probate Deposits

One of the questions which comes up often from my probate clients, potential probate agents, and investors to be is the Probate Deposit. For the most part, the 10% deposit rule is only for the probate sales which are going through the court confirmation process. If you have been reading my blogs you should know by now that this is the last place we look for investment probate deals as we use the newer probate law which allows us to place any amount of deposit we want. Sounds better huh?

As a Probate Agent if you are dealing with end users (buyers who are looking to move in) and you go through the old probate court confirmation process than the buyer will need to place a 10% deposit in escrow with their offer. So let’s break this down. You have a FHA buyer, pre-approved, gold plated who has their 3.5% down but needs some closing help which is typical in today’s market. If we are buying a home at $300K their down is approx. $10K plus closing of around $14K for total needed of approx $24K. Most buyers have the down but not the closing so you could be dealing with a buyer who only has $10K and must have the seller closing cost credit.

If we have to place a 10% deposit up with their offer of $300K they will need $30K. So do you think this could be a problem? You bet it is so what happens, this typical buyer doesn’t look at a probate listing or yours or to make an offer through you as they just don’t have the money. So what has just happened is about 80% of the FHA buyers out there who would have to go through the court confirmation process to buy a probate home has just been wiped out and a smaller buyers pie is left to purchase your probate listing or you as a Probate Agent making a sale just can’t make it work.

For those agents who understand the probate law we use (this is what I teach) than for these FHA buyers with only the 3.5% down, we would still make the offer to this same house but add language to the offer which would pull the probate home out of the court confirmed sale process and into a typical sale process with minimum requirements. This also means a deposit which makes sense. I use 1% to 3% of the offer price so even a buyer with only 3.5% (FHA) down can do this. Probate Real Estate equates to more sales if you know what you are doing.

So when you understand the process and that you can take a court confirmation home out of that process, streamline it, do you think you will have more opportunities to place low down buyers into probate homes other agents don’t have a clue how to do. Also, many times we are just matching the buyer and the estate together representing both sides so we don’t even have the competition you see today on your local MLS. Almost everything in my market sells the first week with multiple offers so you who have been working with FHA buyers with limited cash (need closing help) I bet have been making many offers without and luck.

For investors this is not as big a deal with the 10% deposit because mine place 25% to 50% down and some deals (many more these days) are paying all cash to add to their bottom line. As a Probate Agent it’s your job to understand all these rules and short cuts and how they can enhance your clients offer or bring more net dollars to the estate. Probate Real Estate is a goldmine for those who understand how to make this niche work for them.

It may sound like too much information to understand and many of you will just carry on with your normal business as usual and not check out this niche but you are making a costly mistake. If your RE business isn’t paying you Six Figures right now you might want to check my system out. If you are making six figures then you should still check it out and double your yearly production and income, then use this money to set your retirement up.

Investors who have been chasing TS sales and REO’s should really look into Probate Investing as it is the sleeper of this industry and very few really understand the profits which are there

Probate Real Estate – Where to Find the Notices to Administer the Estate

Probate Real Estate investing as either for your own profits or as a Probate Agent representing investor or end user clients all starts with the “Notice to Administer the Estate”. This is the first notice from the Estate Attorney or the Petitioner that someone has opened a probate case and is making notice. This filing is done over 3 different days to give notice to the general public and must be in a newspaper of general circulation. You are going to have to know where these notices appear in your County in order for you to jump on the Probate Real Estate Band wagon and start earning some huge profits and or commissions.

The first thing to do (if you are not a student of mine) is to contact your local and or County newspaper and ask where the legal notices appear and in what papers (could be a supplement). The Notice to Administer the Estate will usually be in the same location you find the Notices of Default and Trustee Sales. Check out your paper and find them as this is a must. If you can’t find any in your main newspaper check out the local legal newspaper (Inner City Express in my County) as they are in there as well. Finally if all else fails contact your County Probate Court Clerks office as ask them where are the notices filed for the County. You must be able to locate these notices. This can all be done from the comfort of your home or office and most newspapers are online these days so no biggee!

One of the main reasons I love Probate Real Estate is the fact it isn’t easy to find the information we need to research and track probates in our County. This keeps the quick buck artists and those who only concern is money out of my way. Don’t get me wrong I love money but doing the right thing, helping others and making sure I have given more value then received ranks higher to me than the actual money. It has served me well over the years as for over 22+ years now that I have been a Probate Agent buying and selling probate homes never once have I had a complaint over a closed deal. I usually (90%) of the time receive letters of recommendation after I have closed either a wholesale purchase as an investor or represented the estate as their Probate Agent. This is what keeps me going and it has still been a Six Figure yearly income boost to my earnings. Awesome! Probate Real Estate Investing to me is by far the best of any real estae niche I have been invovled with over my 36 years in the business.

For those of you who want to become involved in this niche also contact your probate court clerk and ask if the files are online now. If so you can access your newspaper online for the Notices to Administer the Estate then go to the court house web site and pull the case numbers, do your research all from the comfort of your office. This has made this busy a little more easy and I really don’t prefer it this way but it’s called progress and we will go with it.

I love to discuss probate investing with my fellow agents, investors and those who are interested in learning this system though my course. Look for my new book “Six Figure Probate Agent which about to release plus a series of Videos I’m doing to break down this Probate Real Estate Investing world even more

Probate Real Estate Deposits

One of the problems an investor will have when making offers on probate real estate, which is going through the court confirmation sale process (California), is the requirement to place a 10% deposit up with your offer. The court requires a cashier’s check, so you must have the money and, IF your offer is selected, it will take from 6-8 weeks for your case to go to court for approval. While waiting, your deposit will be with the attorney or in title. In my area where the average prices are $300K, how many offers as a probate investor can you make with $30K deposits on hold for 6-8 weeks?

Of course the way I purchase probates is through the I.A.E.A and on all my offers I am placing only $1000 deposit and most of the time it’s not due until 3 days after I have done my “due diligence” and I’m sure I want the house. I have a clause I use which gives me this right and even though a probate home states court confirmation required most of the time I get around the 10% deposit by using the law that allows me to. On estate sales without a will you can still get around the 10% deposit rule but you must know what you are doing.

So in essence I can make as many offers as I want and I won’t place a cent up in deposit until my offer inspection contingency is removed or offer rescinded which is usually 17 days after the contract is signed. I tie up the property and then sort it out. If you don’t know what you are doing you will be stuck with a large deposit and at the courts mercy on when you will know if you have this property. This is the reason many investors stay away from Probate Real Estate.

As a Investor and Probate Agent I have learned all the shortcuts and laws over the last 22 years and have made this niche a very lucrative opportunity. The probate laws have not changed over the last 22 years so I have been doing what I do week in and week out. This is a Six figure opportunity for those who take the time to learn what I know and the patience to stay with it until their first probate real estate success.

So when you are making an offer on a probate and it’s a court confirmation sale make sure to submit your offer using the I.A.E.A and directing the sale to be without court supervision and based on this procedure your deposit will be $1,000 all due and payable within 3 days after your inspection contingencies are over.

There will be some probates which can go this way and have to have court confirmation so on these don’t be the first bid as it doesn’t matter as you can overbid in court for 5% more. The first bidder has to place the 10% deposit up and wait for 6-8 weeks but you just show up and if the property warrants a good buy even at 5% more you just have to show your 10% deposit at the time of the bid and if you win you go right to escrow and close quick so no biggee.

I love Probate Real Estate Investing and being a probate agent showing my clients how to do this…
Call my office 510-728-2943 if you care to chat more about this.