I’ve been contacting probate property owners and found that over 90% want to sell. Problem is sometimes Realtors beat me to it. Of course with me, a seller can save fees and commissions and in some cases fix up costs (some Realtors insist the property be fixed up prior to market). Not to mention that they will know exactly when they’ll close compared to a Realtor.
Any thoughts on how to convince a probate property seller to go with me an investor, versus a Realtor?
Hi,
I am going to walk gingerely through this as I don't know what state your investing in or that state law. My friend BLL in this forum may be able to elaborate further as to specifics and the basis under Federal law.
When a property goes into probate upon the death of a benefactor, if there are multiple beneficiaries then the court will assign a trustee, by law the trustee is required to market and sell the property through a licensed realtor.
If there is a single beneficiary who inherit’s a home, gaining legal title is subject to going through probate, once clear of the court he or she is entitled to do with the property as they please as they are now the legal home owner.
If the benefactor has a living trust this avoids probate however the trustee assigned by the deceased will probable need to market and sell the property through a realtor to create an arms lenght transaction to protect ones self from being accused of improprieties or failing to keep a legal arms length transaction on behalf of the beneficiaries.
You want to be careful about acting as a realtor without a license, I believe that is not your intent however the state you invest in has laws and regulations dictating actions of a licensed realtor and how and when a investor may be accused of selling real estate without a license. You probable want to check and understand your states laws on “Dealers Status” and whether there are protections on properties inherited or distressed.
(Basically this can indicate protections from investors taking advantage of property owners who are under duress.)
Good luck to you,
GR
I’m in TX. I’m a wholesaler. Part of what you’re saying falls under the basic disagreement that some Realtors have about investors wholesaling property. Like most wholesalers, I talk to the Seller, get the property under contract, and assign and close after clear title.
I stay away from living trusts and focus on properties where the Executor/Personal representative has the authority according to the will to sell the property. Once it’s under contract, I let the Title Company sort it out.
My consternation is that for the types of properties that I drill down to, some of the personal representatives have used Realtors. Some of these properties end up being listed for months when as an investor I could have bought/wholesaled in days.