How To Navigate Probate Real Estate Investing
Are you new to the real estate business? Or perhaps you have simply become increasingly interested in the idea of making new investments?
Buying a house in probate is a brilliant, yet underappreciated way of building wealth. Not many people are aware of just how much wealth can be built by probate real estate investing.
Bluefin Realty wants to open up the world of probate realty and help people learn how to succeed in this great investment opportunity.
What Is Probate Real Estate?
Before buying a house in probate, you need to fully understand what probate real estate is and how it works.
“Probate is the legal process triggered after someone has passed away, assuming they own a home. Their real estate will either be automatically passed onto a relative or it will be sold. This is all a part of the process of settling a will.
An executor will be named in the will, and it may fall to them to assist with distributing property through a will. If the probate includes a home, and this is to be split in ownership, it will often be sold.”
Buying one of these homes and flipping it for a profit is an excellent way to build wealth.
How Does It Work?
To many, the probate process may appear difficult and confusing. There are often a lot of legal documents involved and some court proceedings that can seem overwhelming at first.
But once you get used to the process, it becomes rather easy and second nature because nearly all probate sales follow the same procedure.
The typical probate process has four main steps. Read the following list for a clearer picture of what is involved in the proceedings of probate real estate investing.
1. The Executor Of The Estate
The appointment of the executor of the estate is the first step of any probate real estate investment. Most often the executor is named in the deceased individual’s will.
In cases where there is no will, an administrator will be named the executor by the court. The will should also include if the property is to be sold or given to an heir.
2. The Appraisal
The property must be appraised to determine its value.
After the appraisal is completed, the executor will determine the asking price for the home.
3. The Listing
Now that a price has been decided, the property can be listed. The real estate agent can market the home as they would any other home.
4. The Sale Approval
When a fair offer has been submitted that both the real estate agent and seller are happy with, the sale will need to be approved. The official notice will then be sent by mail to the estate’s heirs.
If no heirs object to the sale within the 15 day notice period, the court will schedule a day for the official sale of the home to be completed.
As someone interested in buying a house in probate, it is important to fully understand the process.
When working with a professional realtor you should be able to find these listings and get great deals on probate homes.
Why Investing In Probate Property Is A Wise Decision
Buying homes in probate can be an incredibly wise way of investing because they are most often sold at a big discount.
The inherited estate can feel like a burden to the grieving family. Because of this they often desire to sell the home quickly and efficiently. Especially if the heirs all live out of state.
The family may want to reduce the time and money spent in the court system or fixing up the home so it is likely you can get the home for well below the appraised price.
How Do You Invest In Probate Real Estate?
Now that you have learned more about what probate realty is, the process involved, and the potential it has for helping you grow wealth, you may be wondering how you can begin investing in probate properties.
For those who are just getting into this type of investments, it is a wise decision to find an excellent real estate agent who has experience with probate sales to work with.
Once you have a good real estate agent to work with, you should begin looking for probate leads.
There are several ways that you can do this:
- Search local probate listings
- Visit your local probate court
- Look online for probate leads
- Purchase probate leads online
- Network with local probate attorneys and estate planners
These are all good ways to get started in your journey of building wealth through probate real estate investments.