| te real estate investing is a special niche not many | | | | involves making a trip to the local courthouse |
| investors know about. This investment strategy | | | | where probate cases are handled. Probated |
| involves buying real estate held in probate. | | | | estates are a matter of public record and can be |
| Probate is the legal process used to distribute | | | | viewed by anyone. |
| estate assets of a person who has died. In the | | | | Most of the required information can be found in |
| best cases, probate takes about six months to | | | | the decedent's last will and testament. The Will |
| settle. If complex issues or family disputes | | | | includes contact information for the estate |
| surround the estate, probate can drag on for | | | | administrator, along with the decedent's wishes |
| years. | | | | for distribution of assets and personal belongings. |
| Probate real estate investing can provide a | | | | Information regarding real estate is also contained |
| solution to heirs needing to sell real estate before | | | | within the Will. Conduct a search of deed records |
| probate settles. There can be many reasons heirs | | | | on the property. Records of Deed document land |
| need to liquidate real estate holdings. One of the | | | | ownership and transactions. Every time real |
| most common is the estate has insufficient funds | | | | estate is transferred or sold, a new deed is |
| to maintain the property. | | | | recorded. Records of Deed disclose if the |
| Throughout the probate process the estate is | | | | property has a mortgage note. If so, the estate |
| responsible for property related expenses. If the | | | | may need to sell the property quickly. |
| decedent held a mortgage, the estate must | | | | The estate administrator is authorized to make |
| continue making mortgage payments in order to | | | | decisions on behalf of the estate. However, if |
| avoid foreclosure. Additional expenses include | | | | multiple heirs are entitled to the property they |
| homeowner's insurance, property taxes, utilities | | | | must all be in agreement before the sale can |
| and homeowner's association dues. | | | | commence. If court confirmation is required, the |
| Oftentimes, heirs reside out of town and cannot | | | | sale might be postponed by 30 days or longer. |
| manage property upkeep. The estate will have to | | | | By carefully searching through information |
| hire outside help to handle general maintenance | | | | provided in Wills and probate documents, |
| such as lawn and pool care. If the estate cannot | | | | investors can develop a list of potential candidates. |
| afford the care, the house could quickly become | | | | Initial contact will be made with the estate |
| an eyesore and lose value. | | | | administrator. This can be done by phone, mail or |
| The majority of heirs do not know they can sell | | | | in-person. |
| real estate holdings during the probate process. | | | | For obvious reasons, it is important to be |
| Some states require court confirmation prior to | | | | respectful and offer your sincere condolences. |
| selling probate property. Experts recommend | | | | Offering to purchase their real estate holdings |
| working with an attorney when buying or selling | | | | could provide a solution they did not know |
| real estate suspended in probate. | | | | existed. |
| There are no special requirements for probate | | | | This is a simplified overview of probate real |
| real estate investing. However, it is important to | | | | estate investing. This niche offers endless |
| conduct research and understand the judicial | | | | possibilities and currently, is a technique few |
| process before diving in. Probate properties may | | | | investors are using. Take time to become |
| not be the best option for a first-time real estate | | | | educated about investing in probate properties |
| deal. | | | | and learn the ropes. Doing so could pay off with |
| The first step of probate real estate investing | | | | handsome profits. |