Investing in Probate Property Gives You a Way to Help Others While Also Benefiting Financially
Ever stop to think about all of the different types of property we accumulate throughout our lifetime and what becomes of it when we are no longer around? What happens to someone’s property when he or she passes away?
What if they have no heirs and have not left a will? What about those cases where the estate is equity-rich, but local real estate is in danger of being foreclosed because mortgage payments can’t be met? What happens to estate properties when the heirs simply can’t agree? What if the estate does not have the cash to pay property taxes? What if the executor lives out of state and, in order to manage the sale of the property, must fly in to meet with prospective buyers—who pays those travel costs?
Situations such as these do happen. And they offer smart investors the chance to help while also benefiting financially.
Probate Investing is the Next Big Thing
If you are a serious real estate investor, you owe it to yourself to look into the lucrative market niche of probate investing. At any one point in time, approximately $6 trillion worth of estate-related properties are on the market throughout the United States. And this number will only grow as members of the Baby Boomer generation begin leaving their worldly goods to the next generation.
You can now reach out to the folks with estates in your immediate area. These estate executors are seeking solutions to assist them in selling estate assets so that their estate can have the funds necessary to settle any expenses and make distributions to the rightful heirs. Today, it is not uncommon to hear of residential property in an estate going into foreclosure or perhaps being sold at a fraction of its value.
Contrary to the popular misconception that the executor does not want assistance in this time of need, studies have shown that this is exactly the time that they are seeking help. Who among us is prepared to take on the responsibility of settling the estate for one of our loved ones? This can become an involved process, and having someone available who understands the complexities associated with the buying and selling of the myriad of properties found in an estate is invaluable.
Why Isn’t Everyone Working Probates?
Probates are filed with the local county court. Probate data is public information, so anyone can go down to the courthouse and retrieve the data.
But that can be a time-consuming project for an individual, leaving little time to actually reach out to those in need.
The key is to have a relationship with a professional lead-sourcing company that can provide you with highly motivated seller leads each month.
WHEN SHOULD THE EXECUTOR BE CONTACTED?
Probate Investing is different from other programs with which you may be familiar. There is a definite point when an executor is willing to sell a property, and that time may be anywhere from today to 18 months from now.
Every situation is unique, and different people handle these situations in different ways. In some cases, the deceased may have left behind specific instructions on how to distribute his or her estate, and in following those wishes, the executor needs to sell immediately. In other cases, the executor and heirs may be overwhelmed for the first several months and not yet ready to sell the estate-related properties.
A concept known as the “pressure cooker” effect is often in play in these situations. The more time that elapses without an estate being distributed, the greater the pressure on the executor to “make something happen.” This can present an opportunity for the discerning investor.
How do you ensure that you are there when the property is ready to be sold? You should implement a program where you reach out to the executor on a frequent basis. Some investors make contact every month using various forms of mailers. Others may send out mailings every other month. The key is to keep something in front of the executor so that when he or she reaches that point where a sale must be made, you and your services readily come to mind.
What is the Promise of Probate Investing?
Probate investing is a great way to fill in your portfolio. There are remarkable opportunities in this little-known space, and you can quickly add another highly performing revenue source by learning how to reach out to these motivated property owners. Estate owners are some of the most highly sought-after sellers in all of real estate property sales.
You will want to begin now and develop your own probate program. The potential for new sales in this market space is huge!
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