Probate Real Estate

In one way or another, we have all been involved in real estate since childhood.  I was sitting here thinking of m experience and as I reflect back, I realize that I saw many transactions as a kid and in a strange sort of way each one these transactions allowed me to have my own real estate experience.

Just think back, and maybe think real hard if you can’t seem to come up with anything.  Think of where you grew up and your own residence, there were many sales going on in front of your face.  There has always been some kind of transaction no matter where you come from. I have a friend in Phoenix, Arizona for example that used to go hunting in Queen Creek as a kid with his dad. Now he looks at Queen Creek and how it has developed into modern day housing compared to the open fields he once played in. It just goes to show that real estate is here to stay and the opportunities to participate in your own transactions, have your own experiences, and build profitable streams of income is available to everyone at every level.

I have three memorable probate real estate events from my childhood.

 Childhood Probate Real Estate Experience #1

I grew up in a large apartment complex and I remember how on the first of the month Dorothy’s (owner) son would come and pick up the rent check from every single tenant and even though I now know that owning income property also comes with maintenance and evictions and other activities that are not so fun, I also witnessed the cash flow, power, and freedom. Man, that was the side I wanted to be on someday.  Eventually, that big head honcho owner Dorothy passed away and guess what? That apartment building became prime probate real estate.

Childhood Probate Real Estate Experience #2

At about the age of ten, I remember that the owner of the four rental homes that all sat on one huge parcel that faced my bedroom window died. I remember that all occupants of those homes eventually left and now these four homes sat vacant. I remember thinking that was so weird that all of these people left their homes.  It was great for me because I got to ride my bike up, down, and in between the four homes.  But soon after, came a bulldozer and heavy machines and wow what an experience I had to witness firsthand the demolition of these properties.  I had a front row seat from my bedroom window to see the development of an apartment building under construction.  I witnessed the demolition, the city inspector, the foundation, the frame, the TGIF gathering of beer drinking construction workers.  I experienced this project all the way to the set of keys being given to the first section 8 tenant.

Boy, I had the ultimate education in probate real estate 101 and I didn’t even know it!

In retrospect, I witnessed a man die, leave behind “Real Property”, and then watch a savvy investor come in and pick up this probate real estate and NOT turn lemon into lemonade but rather turn lemonade into a monthly “cash” dispenser.

Childhood Probate Real Estate Experience #3

At about age 14, there was a big commotion going on in my block.  Apparently, the little old lady from across the street died.  She didn’t have any family at all.

Well, when someone dies without any living heirs (and this happens more often than you think) the property passes to the state (escheat).

What does escheat mean?

It is when a deceased person’s property and/or estate is transferred to the local government because there is no surviving heir such as a spouse, children, grandchildren, parents, grandparents, named charities, etc.

Since the probate real estate that had belonged to the state went back to the state, it then went through the court confirmation process?

What is the court confirmation process?

When someone dies, probate  real estate is the legal process to properly transfer that deceased person’s estate to its rightful heirs but by first paying any outstanding debts and creditors.  With the court confirmation process the estate that has entered probate will need to have any real estate sales confirmed for approval by the court and this will definitely delay the selling of the probate real estate.

The moral to this story is that probate is very extensive in opportunities.  I cannot even begin to scratch the surface here in sharing all of the money making and service providing opportunities found within the world of probate real estate.

In this particular story, I want you to know you can profit both from my commonly talked about full authority, no court confirmation, probate real estate but also from the limited authority, court confirmed legal process.  If you learn how to work both angles well and develop a clear strategy and purpose for your probate real estate acquisition then you can set your buying business to be light years ahead of your competition.

Points to Remember When Dealing with Probate Real Estate

When you are buying probate real estate through court approval, the judge will grant or deny your price. ( Learn how to buy either way)

There will be an opportunity for overbidding “auction style” at the court.(obstacle for some but not for you)

Real property may or may not be known or available to potential bidders.  (Learn how to find them)

10% of appraised value can be a problem when the home is incorrectly appraised by the court and will then negatively affect the sale. (Be the solution by helping to re-evaluate the home.)

Agents can assist with listing probate real estate. (If licensed be the agent; if not, be the agents funnel for both your benefit.)

Probate real estate is one of the most underserviced markets in our country and for the people willing to take the time to educate themselves in the study of this industry; they can be the respected leaders in their region.

The probate real estate laws and process differ from state to state. Our mission at Probate Fox is to work with you and to help you shortcut your learning curve so that you may carve out your niche within the greatest niche in real estate and that is probate real estate.