We apologize, but the forums are closed for new posts. Click Here To Join The Unemployables Facebook Group

Welcome, Guest. Please login or register.
December 02, 2022, 10:12:24 am
Home Help Search Calendar Login Register

Welcome, Guest. Please login or register.
December 02, 2022, 10:12:24 am
Home Help Search Calendar Login Register

Author Topic: Who has done probate investing?  (Read 4944 times)

Offline tbodley74

  • Member
  • ***
  • Posts: 428
Who has done probate investing?
« on: November 12, 2011, 07:38:59 am »
What all do you say to the executors when making offers to buy to properties in probate? I need to contact executors of estates. First I am going to get all the information I need from the courthouse in order to make contact to the personal reps as well as the heirs. I just need to know what I need to say to them to get properties under contract. Anything in particular I should tell them to get the deal done?

Offline motivatedceo

  • Member
  • ****
  • Posts: 912
Re: Who has done probate investing?
« Reply #1 on: November 12, 2011, 10:42:52 am »
I have done it before. It's not that big of a deal.

What all do you say to the executors when making offers to buy to properties in probate?
- Just tell them you'll give them all cash for their property, and if they are looking to sell it quickly vs letting it sit on the market for a while, you'll be glad to help them out. If they want to hear your offer - give it to them - but make sure it's a wholesale or below wholesale price.

I need to contact executors of estates.
- Make relationships with people who deal with the old or dying. Print up a business card that says you'll pay a $3000 cash (or whatever figure you choose) referral fee to anyone who refers someone to you...and establish relationships with people who own & operate funeral homes, as well as those who have thrift stores and resale shops. You'll get more leads than you can handle...because you can be a guy who people turn to when you need to take a property off someone's hands...you will become a problem solver.

Anything in particular I should tell them to get the deal done?
- Nope. Keep it short & simple, but be intelligent about it too and add a sales pitch to it. Tell them you would like to make them an ALL cash offer on the property, and that you would like the address of the property and you would like to come by and view it. After that pull the tax records, get the sales or rent comp records, view the property...and then make a wholesale or even better a below wholesale offer. The worst case is they tell you NO...but it's all worth it if you get a deal.

Regarding the closing or details of who owns the property, its no big deal - just call up a title company (or a real estate agent...though I prefer not to use them to save the commission $$$), ask them who should be listed as the seller, and execute a contract between YOU and THAT PERSON (usually the heir or heirs).

I had a semi-complicated transaction where a wife died and the property was in her name, and the husband/wife were from out of state, and there was no will. She owned a vast collection of properties in her name only, and the husband (via a real estate agent) wanted to sell the property to me. BUT nothing was probated yet, and so we could not close on the place with title insurance. So the title company attempted to set the husband (et al) up with an heirship affidavit so we could close the transaction...but no...those are not recognized in New York. I am in Texas, as is the property. So I had to wait a few months while they probated the assets, which they had to do as it turned out (due to state by state regulations) selling her assets was not that easy to do. But in the end I still got the property, and everyone was happy.

What was especially interesting, though, was the husband sent me some documentation  (prior to closing) that showed his wife paid 4 times what I paid for the property just a few years prior. That was amazing to see. So in a few years, I might sell that thing for 4x what I paid for it.

Can you imagine buying a property that will pay for itself in 3 or 4 years, then selling it for 4x your original purchase price? I think that would cause a financial calculator to say "ERROR" if you tried to calculate your annual percentage yield.

I think we are seeing deals now, that most of us will never see again in our lifetimes. So if you have not started buying many properties yet...GET TO IT!!! And good luck. ;)
 
What all do you say to the executors when making offers to buy to properties in probate? I need to contact executors of estates. First I am going to get all the information I need from the courthouse in order to make contact to the personal reps as well as the heirs. I just need to know what I need to say to them to get properties under contract. Anything in particular I should tell them to get the deal done?
« Last Edit: November 12, 2011, 10:53:14 am by motivatedceo »

Offline tbodley74

  • Member
  • ***
  • Posts: 428
Re: Who has done probate investing?
« Reply #2 on: November 12, 2011, 07:15:22 pm »
Thanks for the advice. Do did you ever have to use state approved contracts when you wholesaled the probate properties? and where would I get those state approved contracts? I can see the purpose of establishing relationships with people who own funeral homes. Why thrift stores and resale shops? I have heard it before that although probate investors are doing the owners of the probate properties a big favor by taking the properties off their hand. Has there ever been a time where people have looked at it in a different way where they see the probate investor in a bad way? I say that because the family are in the midst of going through tough times during the loss of their family member(s) and the last thing they may need is someone coming to them offering to buy the house. How long do you wait before you even make contact with the executors or heirs with your offer to buy the property? My thing is of course I wil be making offers below the asking price. How do you get the sellers of the probate property to accept your offer that is less than what they are asking for? I feel like I should not stick with the deal if the seller just will not accept my offer because it is less than asking price. No need to pressure them to sell when they do not want to. Right?
I have done it before. It's not that big of a deal.

What all do you say to the executors when making offers to buy to properties in probate?
- Just tell them you'll give them all cash for their property, and if they are looking to sell it quickly vs letting it sit on the market for a while, you'll be glad to help them out. If they want to hear your offer - give it to them - but make sure it's a wholesale or below wholesale price.

I need to contact executors of estates.
- Make relationships with people who deal with the old or dying. Print up a business card that says you'll pay a $3000 cash (or whatever figure you choose) referral fee to anyone who refers someone to you...and establish relationships with people who own & operate funeral homes, as well as those who have thrift stores and resale shops. You'll get more leads than you can handle...because you can be a guy who people turn to when you need to take a property off someone's hands...you will become a problem solver.

Anything in particular I should tell them to get the deal done?
- Nope. Keep it short & simple, but be intelligent about it too and add a sales pitch to it. Tell them you would like to make them an ALL cash offer on the property, and that you would like the address of the property and you would like to come by and view it. After that pull the tax records, get the sales or rent comp records, view the property...and then make a wholesale or even better a below wholesale offer. The worst case is they tell you NO...but it's all worth it if you get a deal.

Regarding the closing or details of who owns the property, its no big deal - just call up a title company (or a real estate agent...though I prefer not to use them to save the commission $$$), ask them who should be listed as the seller, and execute a contract between YOU and THAT PERSON (usually the heir or heirs).

I had a semi-complicated transaction where a wife died and the property was in her name, and the husband/wife were from out of state, and there was no will. She owned a vast collection of properties in her name only, and the husband (via a real estate agent) wanted to sell the property to me. BUT nothing was probated yet, and so we could not close on the place with title insurance. So the title company attempted to set the husband (et al) up with an heirship affidavit so we could close the transaction...but no...those are not recognized in New York. I am in Texas, as is the property. So I had to wait a few months while they probated the assets, which they had to do as it turned out (due to state by state regulations) selling her assets was not that easy to do. But in the end I still got the property, and everyone was happy.

What was especially interesting, though, was the husband sent me some documentation  (prior to closing) that showed his wife paid 4 times what I paid for the property just a few years prior. That was amazing to see. So in a few years, I might sell that thing for 4x what I paid for it.

Can you imagine buying a property that will pay for itself in 3 or 4 years, then selling it for 4x your original purchase price? I think that would cause a financial calculator to say "ERROR" if you tried to calculate your annual percentage yield.

I think we are seeing deals now, that most of us will never see again in our lifetimes. So if you have not started buying many properties yet...GET TO IT!!! And good luck. ;)
 
What all do you say to the executors when making offers to buy to properties in probate? I need to contact executors of estates. First I am going to get all the information I need from the courthouse in order to make contact to the personal reps as well as the heirs. I just need to know what I need to say to them to get properties under contract. Anything in particular I should tell them to get the deal done?

Offline motivatedceo

  • Member
  • ****
  • Posts: 912
Re: Who has done probate investing?
« Reply #3 on: November 13, 2011, 08:00:11 am »
Do did you ever have to use state approved contracts when you wholesaled the probate properties?
- By "state approved", I do use the standard Texas Real Estate Commission contract, yes. It is not specific to probate investing - it is actually designed for any sort of residential real estate purchase (they have a 1-4 family contract, a condominium contract, etc). It's available free, online.

Where would I get those state approved contracts?
- http://www.trec.state.tx.us/formslawscontracts/forms/forms-contracts.asp

I can see the purpose of establishing relationships with people who own funeral homes. Why thrift stores and resale shops?
- Kids of a deceased parent tend to use those places to get rid of an entire house worth of goods - old furniture, clothes, whatever. It's alot easier than having a garage sale, or Ebay'ing each item one by one.

I have heard it before that although probate investors are doing the owners of the probate properties a big favor by taking the properties off their hand. Has there ever been a time where people have looked at it in a different way where they see the probate investor in a bad way?
- No. It's all business - not personal. You are buying for CASH and helping them bypass the traditional "list it on the MLS and wait 6 months for some action" process ... in lots of cases they want their money NOW. So you have to buy at a large discount, especially if the place is not in mint condition. In most cases the properties are far from being in mint condition.

How long do you wait before you even make contact with the executors or heirs with your offer to buy the property?
- They will contact you when they're ready to sell the property, hince they respond to your advertisement or referral. They come to you.

How do you get the sellers of the probate property to accept your offer that is less than what they are asking for?
- You never give them pressure - you don't want to come across as a used car salesman begging for a deal. First and foremost, you need to know what your target price is for that property before you even actually give them an offer or begin negotiating - hince I said look at the place and do a little research after your first conversation with them. You don't want go above that target price (or by much). I always start by asking them what they want for the property, and see what they say. I had a property just the other day I was willing to pay $40k cash for, and the guy told me he would take $10k (I posted that on a different forum, on this message board). I thought in my head..."holy @W## what a steal"...but I did not say that to him of course...I just said..."That sounds fair. All I need to do is look at it, and if it looks good I will email you the contract". Lets just say I viewed the property, then got the contract signed and delivered to the title company with my earnest money within 24 hours. LOL!!!! SO YOU NEVER KNOW HOW THINGS WILL WORK OUT! But say it's a slightly higher dollar property, and they want $200k and the most you will pay is $150k. I would first explain to them that you looked at the property and it needs X, X, X, X, and X done to it...point out all the problems with the property, talk about how bad the real estate market is right now compared to several years ago...and then tell them because of that the maximum you can pay is $150k....and at that point, they will take it or leave it. I get plenty of NO's in what I do, but I get plenty of YES's too. So expect the same. When you get good enough at networking, don't be surprised if you have more deals come across your table than you have money or credit.

Please be aware it will take some time to get your sales pitch down. I have read books on sales, and spent years honing my skills, so its going to be a lot easier for me than for you. I think that's one reason I get my rentals leased out so quick and stay near 100% occupancy with qualified tenants...I am aggressive, and good, at sales. So spend time honing your sales skills - I cannot emphasize that enough.

Good luck
« Last Edit: November 13, 2011, 08:49:16 am by motivatedceo »

Offline tbodley74

  • Member
  • ***
  • Posts: 428
Re: Who has done probate investing?
« Reply #4 on: November 13, 2011, 04:21:00 pm »
I hope to come across a seller like that willing to sell me a house for $10k when I was willing to pay way more than that. You got it made pretty good on that deal. I know probate investing is legal in any state. Would it be necessary to talk to an attorney anyway to make sure what I am about to get into is ok?
Do did you ever have to use state approved contracts when you wholesaled the probate properties?
- By "state approved", I do use the standard Texas Real Estate Commission contract, yes. It is not specific to probate investing - it is actually designed for any sort of residential real estate purchase (they have a 1-4 family contract, a condominium contract, etc). It's available free, online. Since it is not specific to probate, I maybe can use one of my purchase agreements to get the house under contract and an assignment contract to sell the property.
Where would I get those state approved contracts?
- http://www.trec.state.tx.us/formslawscontracts/forms/forms-contracts.asp

I can see the purpose of establishing relationships with people who own funeral homes. Why thrift stores and resale shops?
- Kids of a deceased parent tend to use those places to get rid of an entire house worth of goods - old furniture, clothes, whatever. It's alot easier than having a garage sale, or Ebay'ing each item one by one.

I have heard it before that although probate investors are doing the owners of the probate properties a big favor by taking the properties off their hand. Has there ever been a time where people have looked at it in a different way where they see the probate investor in a bad way?
- No. It's all business - not personal. You are buying for CASH and helping them bypass the traditional "list it on the MLS and wait 6 months for some action" process ... in lots of cases they want their money NOW. So you have to buy at a large discount, especially if the place is not in mint condition. In most cases the properties are far from being in mint condition.

How long do you wait before you even make contact with the executors or heirs with your offer to buy the property?
- They will contact you when they're ready to sell the property, hince they respond to your advertisement or referral. They come to you. I gotletters I want to mail out to these people.

How do you get the sellers of the probate property to accept your offer that is less than what they are asking for?
- You never give them pressure - you don't want to come across as a used car salesman begging for a deal. First and foremost, you need to know what your target price is for that property before you even actually give them an offer or begin negotiating - hince I said look at the place and do a little research after your first conversation with them. You don't want go above that target price (or by much). I always start by asking them what they want for the property, and see what they say. I had a property just the other day I was willing to pay $40k cash for, and the guy told me he would take $10k (I posted that on a different forum, on this message board). I thought in my head..."holy @W## what a steal"...but I did not say that to him of course...I just said..."That sounds fair. All I need to do is look at it, and if it looks good I will email you the contract". Lets just say I viewed the property, then got the contract signed and delivered to the title company with my earnest money within 24 hours. LOL!!!! SO YOU NEVER KNOW HOW THINGS WILL WORK OUT! But say it's a slightly higher dollar property, and they want $200k and the most you will pay is $150k. I would first explain to them that you looked at the property and it needs X, X, X, X, and X done to it...point out all the problems with the property, talk about how bad the real estate market is right now compared to several years ago...and then tell them because of that the maximum you can pay is $150k....and at that point, they will take it or leave it. I get plenty of NO's in what I do, but I get plenty of YES's too. So expect the same. When you get good enough at networking, don't be surprised if you have more deals come across your table than you have money or credit.

Please be aware it will take some time to get your sales pitch down. I have read books on sales, and spent years honing my skills, so its going to be a lot easier for me than for you. I think that's one reason I get my rentals leased out so quick and stay near 100% occupancy with qualified tenants...I am aggressive, and good, at sales. So spend time honing your sales skills - I cannot emphasize that enough.

Good luck


Offline motivatedceo

  • Member
  • ****
  • Posts: 912
Re: Who has done probate investing?
« Reply #5 on: November 13, 2011, 08:32:24 pm »
I don't know why you'd need to talk to an attorney...? But if it would make you feel better, do it. Why not double-check your documents and business plan with a real estate attorney...it can't hurt....it will just cost you some nice $$$.

Ultimately, you are the one responsible for knowing what types of contracts you are entering into. I wouldn't feel as safe doing the deals, if I were not using my own cash. If I sign a deal to buy a place for $40k cash, I know I have the cash sitting in one of my bank accounts ready to go asap. However if you are planning on using a line of credit - say hard money or whatever - make sure you have that contingency in your contract. If you fail to follow through on a deal...you can get sued, and that would stink.

Good luck!

Offline tbodley74

  • Member
  • ***
  • Posts: 428
Re: Who has done probate investing?
« Reply #6 on: November 13, 2011, 09:36:10 pm »
Well I was referring to a real estate attorney.
I don't know why you'd need to talk to an attorney...? Ok so I don't really need to talk to a lawyer, but I would  feel better having it confirmed by a real estate lawyer that what I am doing is ok in my state. But if it would make you feel better, do it. Why not double-check your documents and business plan with a real estate attorney...it can't hurt....it will just cost you some nice $$$.

Ultimately, you are the one responsible for knowing what types of contracts you are entering into. I wouldn't feel as safe doing the deals, if I were not using my own cash. If I sign a deal to buy a place for $40k cash, I know I have the cash sitting in one of my bank accounts ready to go asap. I will use my own cash after I built up enough profit from wholesaling to buy a house.   However if you are planning on using a line of credit - say hard money or whatever - make sure you have that contingency in your contract. I was planning on using transactional funding to help close my deals if I am unable to do assignments.  I came across a deal a while back that required properties to be brought with money upfront. If you fail to follow through on a deal...you can get sued,  and that would stink.

Good luck!

 




SMF 2.0.15 | SMF © 2017, Simple Machines