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| Title: How To Make Money Investing In Probate Real Estate |
| Date Added: November 19, 2010 05:34:54 AM |
| Author: Simon Macharia |
| Category: Real Estate : Agents - United States |
| Probate properties are some of the most profitable real estate investing deals. 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. Once a person dies, their estate is inherited by heirs or beneficiaries. The probate process involves clearing the outstanding debts and releasing the remaining to the heirs. For example, the a probate property will be sold to settle outstanding mortgage balance and the rest distributed to the beneficiaries. The estate is responsible for all expenses such as cleaning the yard, utility bills, maintenance, etc. Probate property can therefore be a source of distress.An administrator (executor) is appointed to settle the estate. Usually this is an attorney. One of the beneficiaries can sometimes be appointed as the administrator. This is done to reduce legal expenses. Beneficiaries therefore need to sell the properties fast to reduce expenses. The estate will pay fees associated with selling the house and real estate commissions if they sell through a Realtor. They can minimize these if they sell to a real estate investor. Sometimes it is necessary to fix the house before it can be sold. Unless they can afford repairs, a real estate investor may be the best buyer. How to locate probate real estate All probates are recorded in the county court records. Three pieces of information are important: 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. The name of the deceased is a good way to start. Sometimes, the property may be in the name of the estate, such as John Doe Estate. Finding debts owed by the estate is also important. The beneficiaries or administrator may also provide this information. 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.Also, if you do not have the correct addresses, any letters to the beneficiaries will find their way to the administrator of the estate. 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 always start by giving condolences for their loss and expressing interest in buying any real estate if it is on sale. They will contact me when the time comes to sell. Then I will make the deal happen. 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 |
