Probate Real Estate Investing - A Lesser Known Investment Opportunity

Probate real estate investing involves buying propertyrequired to maintain payments throughout the
from probate estates. Probate is the process used toduration of probate.
inventory and distribute assets owned by someoneIf the property has a second mortgage against it,
who has died. Depending on the complexity of thechances are the heirs will need to sell the property in
estate, the probate process can last between sixorder to pay-off outstanding balances. The estate
months to three years. During this time the estate isadministrator is authorized to make decisions
responsible for maintaining the property and payingregarding the sale. However, if multiple heirs exist,
mortgage payments, utilities and insurance.they must all agree to sell real estate held in probate.
Probate real estate investing provides an opportunityIn some instances, the estate may require permission
for estate administrators to sell real estate holdings.from the probate judge to sell real estate holdings.
This is particularly beneficial for administrators whoUpon compiling a list of potential probate real estate
are struggling to pay mortgage payments or maintaindeals, investors will need to make contact with the
upkeep on property held in probate.estate executor. This can be done by phone, mail or
The first step of probate real estate investingin person. When contacting the estate administrator it
requires a visit to the local courthouse where probateis imperative investors be respectful and offer their
matters are handled. When an estate is placed intosincere condolences.
probate it becomes a matter of public record. TheMost estate administrators and beneficiaries are
majority of information regarding the estate can beunaware they can liquidate real estate during the
located in the decedent's Last Will and Testament.probate process. Offering to purchase their property
Typically, the Will designates the estate executor andcould solve their financial problems and provide
outlines how the decedent wishes to have theirinvestors with instant equity in their investment.
personal belongings and financial assets distributed.Oftentimes, real estate can be purchased well below
If the decedent dies without executing a Willmarket value when heirs are in need of immediate
(intestate), probate records will indicate who hascash.
been assigned to administer the estate. Generally, thisProbate real estate investing does not require special
is a direct lineage relative. However, if the decedenttraining. However, investors who engage in buying
has no living relatives or no one accepts the positionprobate properties should possess solid
of estate administrator, the probate court assigns ancommunication and negotiation skills, along with a
outsider to manage the estate.sense of compassion.
Once the Administrator's contact information isInvesting in probate real estate offers multiple
located, the next step requires a search of deedopportunities to obtain profitable deals. While it
records to locate real estate held in the decedent'srequires a bit of detective work and negotiating with
name. Records of Deed record land ownership anddistraught and grieving heirs, when conducted
transactions. When real estate is transferred or sold,properly probate real estate deals provide a win-win
a new deed is recorded. Deed records reveal if thesituation to all parties involved.
property has a mortgage. If so, the estate is