#probate real estate
What is Probate Property?
Before we discuss probate property let s touch on probate itself. In legal terms,probate is basically the legal process of administrating a will. It s also the judicial supervised process for marshaling a decedent s assets, paying proper debts, and distributing the remaining assets to the persons or entities entitled to them.
In basic terms, probate is the legal term that is used in the process to distribute a decedent s assets to its proper beneficiary, heir, and transferring title to its rightful heir by properly paying decedent s debts and taxes which we also call settling an estate. This is where probate property comes into play.
In the settling of the estate, if there is a will, probate will prove that the will is valid.
It is very important that all debts, taxes, mortgage payments, auto payments, and any recurring balances be paid first so that all distributions like real estate, monies, automobiles, and other personal assets can be appropriated to the right entity. Now you may be wondering what is probate property?
So what is probate property?
Probate property is when a person passes away, they usually own assets and its usually different kinds of assets. The first one is real estate and most of the time that real estate is free and clear. Then we have other belongings; such as mutual funds, stocks, money market accounts, bank accounts, vehicles, insurance policies, and all of their household belongings is probate property.
All of these probate properties that were once owned by this decedent are called his estate .
The proper owner can be the heirs or persons named on a will. If there was no will then to the closest relative.
Find Out More About Probate Property
Two kinds of Probate Property
Your big opportunity is in probate property. You see we have two kinds of probate property. The first is real property. Real property as you may already know is real estate like a house, a multi-unit, a commercial building, a shopping center, and even land. All that is defined as real probate property.
Next, we have personal property. Personal property, as I said before, could be your home furnishings, your Mac or PC Computer, the dishes, the antiques in the house, that old grandfather clock, the beautiful paintings, the piano, the bank accounts, 401 K s, the vehicles, antique cars if there s any, gold coins, jewelry, the kitchen set. You get the idea. All that stuff is personal property.
Why Probate Property For You?
By far the most impressive and yet under worked niche in real estate is probate property.
It s especially impressive at how even “the little guy” can participate in the estate liquidation, that being probate property. In probate, you can buy all day long from 30, 40, to even 50% below market value, which is why I focus the majority of my marketing and efforts into probate acquisition.
So hopefully you now know that buying probate property is a smart decision and that it will give you complete control of your property acquisition regardless of the economy or any other market conditions and probate can put you on the fast track to achieving your much desired financial freedom.
Probate property is definitely the untapped market. It has all of the right reasons, for investors, especially those who don t have money and don t have a lot of experience buying and selling property.
You see, when I first started investing in real estate; the market was also a declining down market such as this one and I literally started on a shoestring budget. I mean I had absolutely no money to work with and the fastest and easiest way I was able to acquire property was through creative financing.
I know a lot of people believe that creative financing is dead, but that is wrong. Creative financing is very well and alive in probate today.
In probate you are dealing with a property that usually has a lot of equity or is even free and clear plus combined with true motivated sellers so you have the perfect recipe to buy subject to, owner financing, lease to own, or to assign the contract.
For just that reason alone real estate property in probate is the single best niche for you to get started in.
As real estate investors in the buy and sell business, it is important for you to buy at substantial discounts. With probate property, you can buy from 30- 50% below market value.
To help prove that, let me tell you one true story of a common occurrence in probate property. This past week, I had a personal representative of an estate call me. He told me, I got your letter that says you can buy the property fast and pay cash and I can be done with this. I wanna be done with this.
See this person happens to leave in Missouri and I live in California and the property is in Inglewood, California. He didn t ask to be the personal representative of this estate but he was nominated in the will. Ain t it funny that when this decedent was alive he really didn t have many friends or family to visit him or acknowledge that he existed; but just as this decedent passed away, all these heirs came out of the woodwork. And obviously each one wants to get paid. And the one thing they have in common is that they want to get paid and they want to get paid quick.
So to continue the story, the personal representative of this estate, obviously, is in no interest to maximize other people s profits. This is a hassle for anybody who has a life of any kind. This personal representative happens to be a senior citizen and he says he has a life and he does not have any time for this lengthy probate process. His offer to me is, … if you can buy this house quick and easy, I already know you’re gonna want a discount. But that s fine if you can take this off my hands”
In probate, you are in the business to help people by becoming an expert in your probate niche/market. You help by facilitating the liquidation of an estate through the purchase of real estate property and whenever possible personal property, too. It s the ideal win/win scenario.
But don t let some of the common probate misconceptions, and I stress misconceptions, stop you from your probate property success.
Your agent will find the probate property.
That is wrong! Most agents don t know a thing about probate and much less how to help you acquire it at deep discounts.
I can find those in the obituaries.
You may find a deceased person in the obituary but it is definitely not the best resource to find your probate property. The best place for you to find your probate is usually at a court clerk s office; usually in the county where the decedent last resided or lived.