A person who takes interest in investing in the housing industry can find that there are more ways to buy properties compared with reviewing for sale listings. Some savvy investors know where to find homes that are often purchased for under market value that will never make it to a realtor or broker listing. Learning what is probate real estate investing can improve nearly any investing business.
How Probate Works
Probate is the legal process that helps classify what happens to the personal possessions of a deceased person. The division of real estate and other assets often take more time due to the complexity of exploring the history of a property. Every local court in the United States has a probate division that handles cases for families and heirs when dealing with real property.
Getting Probate Real Estate Leads
The process of learning about what properties are entering the probate legal process in a given county is relatively simple to learn. Some county clerk offices publish notices in newspapers alerting the public and real estate investors of properties scheduled to go through the asset division process. Some counties can provide a list of documents upon request that an investor can review to determine what homes are available.
There are some companies on the web that sell leads or lists although these can usually be obtained for no cost at the county level in each city. Once a list has been obtained, pinpointing what properties to perform research on is the next step before a written offer to buy a home can be submitted.
Buying a House in Probate
There are several different methods to purchase a home that has entered probate at the county level. Investors often send letters or postcards directly to an executor who is handling the probate for a deceased family member, friend or relative. The reason that purchasing homes in probate is lucrative for real estate investors is the ability to buy these homes below the market value.
Because most people who inherit property are not expecting the home, it can be a burden to handle all of the legal details. Many children of deceased parents will agree to sell a property instead of holding onto it and fixing it up for later sale. A downside to buying these types of properties to use as an investment is the repairs that might be needed. Because many homes can be in a distressed condition, additional repairs investments by a probate real estate buyer is almost always required.
Alternatives to Probate Investing
Homes that are already rented by a tenant who is under a lengthy lease agreement prior to the home being marketed for sale is an excellent option for a purchaser of real estate. A guide to buying and profiting from turnkey homes featuring extended lease agreements can be obtained in the top right corner of this page.