Where real estate is concerned, there are always new and interesting ways to invest money. The property markets are where a lot of people build their wealth, and there are often bargains to be found and ways to cleverly invest your money. Buying and flipping properties is a popular way to do so, and investing in probate real estate is something that some people are doing, but in our opinion, it is still going to grow an awful lot in popularity.
Probate real estate sometimes needs to be done with a heavy heart. Property usually goes into probate when somebody passes away, and while this is a sad time, something needs to be done with the property, and it is best that it goes to use in the future. Probate real estate investment is necessary.
What Is Real Estate Probate?
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. Also, there are many reasons for real estate in probate to be sold at a cut-price even if it has been left to one single person. They may not want the property, or they might not be able to afford the upkeep or ground rent for the property. This can create a chance for real estate investors to swoop and make some cash.
The process is not immoral and should be done in a way that is best for all parties involved. Often, the home remaining in the family can become a burden, and having somebody buy it while in probate can be a relief. At a time of loss, clearing out possessions can be very difficult. Not to mention house repairs and other things associated.
Probate Investing: How to Buy Probate Real Estate
Some people are intimidated to go into the market as they aren’t sure where to get the leads or find potential purchases in the probate market. It isn’t usually too difficult, though.
Newspaper notices can sometimes be placed by local county clerks that show a document full of real estate properties that are going to go through the probate process or “asset division” where the assets are sold to be divided accurately. Ask your local county clerk if this sort of list is available anywhere.
You can also find businesses locally that sell leads and probate property lists but this is usually just them selling info they have acquired for free. You can find the same information.
The actual process of buying a home in probate can vary somewhat. It isn’t always one identical process and set of steps you can follow.
Sometimes, investors will send a letter to the executor of the will or in charge of the estate. This can lead to a private negotiation and often the fact that the sale can be done quickly and easily can lead to a lower price. Also, the extra work undertaken by the buyer (clearing the house, for instance) can be a negotiating point for this. Plus, the seller is motivated. Often they have to sell the house, otherwise, they can’t divide the assets equally.
Finding the specifics of how to buy and sell probate properties can be quite simple, but you can’t always sum it up in one article. There are over 3,300 counties in the USA and they all have their own specific set of rules and regulations regarding probate properties. It would be wrong to give advice beyond the fact that you can buy directly from the person in charge of the estate, and that you can face a lengthy process. You will need a probate attorney with knowledge of the local area.
How to Sell Probate Real Estate
If you’re in the position where you need to sell house fast and to make sure you don’t make any errors in the process, it is again important to speak to people in the know. You need to work with a probate attorney and with the local authorities. Notices of probate can be distributed by the local county and this can help you to shift the property.
Related: How to Sell Your House Fast: 11 Tips
The reason for needing a legal representative too is to do with the fact that in legal terms, probate property can lead to a lot of court proceedings. There is usually no problem raised during this time, but it does take a long time to jump through the various hoops. With something so delicate as a probate legal proceeding, it is important that everything is carried out thoroughly.
Wrapping It Up – Investing in Probate Real Estate
Probate real estate is an attractive proposition for a lot of different reasons. It doesn’t have too many downsides, especially if there is no moral issue surrounding the purchase. Some people stay away from this type of purchasing because of the fact the homes often need clearance and other work. Some people are afraid of the process, but if you are not intimidated by these aspects then there are some very affordable properties to be bought.
You’re effectively giving the person or people who inherit the property the chance to get rid of it and gain money instead of the value of the property. If three people inherit, it isn’t like you can divide the home itself into three equal parts.
There is a certain etiquette involved. You should make sure that any previously held belongings and things like photo albums are removed before you buy, but this isn’t usually something that will be an issue with probate. This kind of thing has often been done long before its listing. The best tip is to get started and learn more from the local county.
This article has been contributed by Mike Johnson.