How To Profit From Probate Real Estate

Probate properties are some of the most profitable real estate investing deals. They are especially attractive due to several factors. This article walks you through how to make money in probate real estate. Probate properties are those properties whose owner has died. The estate is inherited by heirs or beneficiaries 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. Probate property can therefore be a source of distress. The court appoints an administrator (executor) to settle the estate. Usually this is an attorney. Sometimes a heir can be appointed as the administrator. This is done to reduce legal 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. 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. If they cannot afford repairs, then a real estate investor may be the best buyer for such a property. 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.  If you are investing in probate real estate, you should be checking the county court records periodically for new probate filings. You must then verify if they owned real estate from county recordings. Start with the name of the deceased. The property may also be recorded in the estate name, e.g. John Doe. Finding debts owed by the estate is also important. If this is not possible, I usually get this information from the beneficiaries or administrator. Then you need to contact the administrator AND the beneficiaries. This is because the administrator can change from an attorney to one of the beneficiaries appointed by the court. This is very common. This can also be helpful if you do not know the correct mailing address of the administrator.  You do not send postcards. I usually send a series of nice, 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.  When it is time to sell, they will contact me. 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