There are several areas of focus that you can take as an investor, wholesaling, foreclosures, subject-to and many other variations, but one that is often over looked is probate investing. This is one area that more investors should investigate and look at jumping into.

What is probate?

Probate is the process by which legal title of property is transferred from the deceased estate to his or her beneficiaries. This is where the court will decide who gets the property and assets of the deceased.

If the deceased has a will it makes the process a lot easier. If a will is present the probate court determines if the will is valid and then orders the creditors be paid and overseas the process to ensure that the remaining property is divided as described in the will.

If there is no will then the process can be very long and often may not be fair. The probate court will appoint a person to receive all claims against the estate, pay creditors and then distribute all remaining property in accordance with the laws of the state.

The major difference between dying with a will and dying without a will is that when there is no will the estate is distributed to beneficiaries in accordance with the distribution plan established by state law; when a will is present (after payment of debts, taxes and costs of administration) the estate is distributed in accordance with the instructions provided by the decedent in his/her Will.

Purchasing Probate Property

Focusing on properties that are in probate is one area that is often overlooked by investors, but what that can be very lucrative. In most cases when someone inherits a piece of property they do not want to keep the property. In most cases the new owners really don’t know what to do with the property and typically just want to liquidate the property quickly.

The desire to liquidate the property quickly provides you with a motivated seller, who in most cases is willing to sell below market in exchange for a quick sale.

Typically probate estate or property can be purchased directly from the executor of the will, or from the heir that inherited the property. If the property was inherited by more than one heir it is critical that all heirs agree on the sale and sign the purchase and sales contract.

Purchasing Probate Property Requires Special Handling

One key item that you must keep in mind when purchasing probate property is that you will often be dealing with someone that just lost a loved one. It is critical that you always offer your condolences to the family regarding their loss.

It often takes time for a grieving loved one to process the death of the family member and be ready to move on and sell the property, give them time and don’t pressure them. Just ensure you act in a professional manner and set yourself up as someone that can help with the situation of the unwanted property.

Conclusion

Investing in Probate can be a lucrative endeavor and one that can create great value for yourself as well as those that you are helping out by providing a solution to the unwanted property.

If you are professional, not pushy, acknowledge the grief they are feeling and set yourself up as a provider to a solution you will be successful with probate investing.

About the Author:

Stefanie Blackburn is an active Real Estate Investor and an Internet Marketer. She strives to provide as much information and resources that she can to other investors to help them succeed. If you are interested in learning more about Probate Investing Ron Mead’s 31 Days to Profits in Probate Real Estate is a great resource.

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