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If you are looking for the perfect estate to buy, one of the first things you should consider is probate leads. These lists will help show you which properties are up for sale and what price range they fall in. When it comes to buying property, make sure your due diligence includes finding a list of probates that might be available in your area so that you have a chance at snagging an affordable piece of real estate before someone else does!
Probate leads are property that can be bought after a person has died. They are often sold at auction, but sometimes they are given away for free. The “free probate leads” is a website that offers these types of leads without charge.
What are Probate Leads and How Do I Get Them?
Probate leads are possible seller customers who inherit properties and want to sell them fast once the probate procedure is completed (the legal process of transferring the assets of a deceased person to heirs). Many heirs choose to sell soon because they reside out of state or are otherwise unprepared to preserve the property.
While probate leads are beneficial, you must have access to as many leads as possible to be genuinely effective. Similar leads include FSBO, FRBO, and pre-foreclosure leads, which may be acquired through lead gen software like REDX for as low as $39.99 per month. When you click the hyperlink below, you can join up on their website in minutes and save $149 on the setup fee.
Visit REDX
Finding Probate Leads: An Overview
Locating, pitching, and closing probate leads seems like a great way to spend a day for most novice real estate investors, right up there with root canal. You could even believe that probate investors are similar to ambulance chasers—except that they pursue hearses! Probate investment isn’t worth it since the last thing you want to do is hassle a grieving widow for a quick money… That is, until you start reading about the mind-boggling bargains that several probate lead investors are hauling in.
The hardest part, as with most great real estate lead generation strategies, is getting started. That is why we created this tutorial. We’ll cover all you need to know about finding, pitching, and closing probate properties the correct way in this post. There’s no need to chase down a hearse.
Why Probate Leads & Probate Properties Are so Attractive for Investors
Lead generation is always a stumbling hurdle for novice investors when it comes to real estate investment. Most novice investors are at a lost when it comes to really getting leads. They may have the cash, the expertise, and a wonderful contractor, but when it comes to actually obtaining leads, they are at a loss. How do you manage to get properties at a fraction of their true value? The solution is really rather straightforward.
Probates are more likely than any other lead source to sell below market value.
One of four essential requirements must be completed in order to acquire probate properties or any property for less than market value:
1. The owner should want or need a rapid sale of the property.
2. The owner should be out of state and unable to manage the property due to a lack of time, energy, or financial resources.
3. The owner shouldn’t be underwater on their mortgage if they aren’t in or near to foreclosure.
4. The house should not be the owner’s main residence.
While pre-foreclosures and short sales satisfy the first requirement, and absentee owners satisfy the second and third, probate leads often satisfy all three. For example, someone who inherits a property from a dead family may be unprepared for the financial strain of owning and maintaining a second home, especially if they live out of state and don’t use it as their primary residence. Even better, since dead people’s mortgages are often paid off, they typically own the property outright. As a result, any profit from the sale of the house will be considered a windfall.
Mike Hambright, real estate investor and CEO of Flipnerd.com, has this to say about the attractiveness of probate homes for investors:
“As a real estate investor, you may be able to assist a family who has lost a loved one by purchasing their house ‘as is.’” Dealing with expensive and tedious repairs after losing a loved one is a heartache that most people would want to avoid. For some, a fast, painless sale, even if it’s at a big discount from market value, is worth the risk. This is a win-win situation for both the seller and the cash buyer if done correctly.”
Sharon Vornholt, a Louisville probate specialist and real estate investment educator, puts it succinctly:
“They don’t care about the home; all they care about is the money.”
Have you started to become excited yet? Okay. After that, let’s look at how you may get probate leads on your own.
The 5 Most Effective Ways to Locate Probate Leads
Let’s go through the best techniques to get probate leads now that you have a better knowledge of the probate prospects open to you. While the technique you select will mostly rely on where you reside in terms of state and county, these tactics will work in all 50 states.
1. Look up and search your local probate records.
Probate may be posted in the local newspaper, on the internet, or you may have to travel to the court to collect the documents personally, depending on the location you want to invest in. You’ll want to collect leads early in the probate procedure if you want to start investing in probates.
2. Look for Probate Leads in Your County on the Internet.
Whether you want to check if your county has online probate or other court documents right now, go to the Public Record Center website, which lists counties that have online probate or other court records.
If the county maintains probate records online, you’ll need to know the name of the dead to find them. Checking local obituaries is a useful way to get the deceased’s name. An obituary may also include information on the status of a dead person’s property. If the deceased’s obituary says that he or she is survived by a spouse, the title to the property is likely to pass to them.
After that, you must determine whether or not they possessed property. You may accomplish this by going to the website of your local tax assessor.
Because some counties have new probates every day, after you’ve found out the procedure for your county, you’ll want to check for changes and new probates on a regular basis.
3. Contact or go to the Probate Court in your area.
If your county’s probates aren’t listed online, you’ll need to phone or go to your local probate court to talk with the clerk. You may be able to get a list of all probates in your county, or you may need to go a bit harder, depending on your county. You may also be charged a modest price for photocopying.
4. Form collaborations with local estate planning or probate attorneys.
Befriending a local probate or estate planning attorney that handles a big number of probates in your area is another wonderful technique to receive probate leads. While access to public documents is beneficial, obtaining the inside scoop is much better.
Though she may be prejudiced as an attorney, Atlanta Attorney Laura French feels that this is an excellent method to keep in the know and get probate leads straight from the source:
“Real estate professionals should seek to develop a positive working relationship with local estate planning and probate attorneys – attorneys who prepare wills, trusts, and handle probate and trust administration; this is the group of attorneys who can connect clients and estates to real estate professionals.”
Although many probate lawyers will have established contacts with a local real estate agent or investor, anything might happen. Perhaps their preferred agent or investor has just retired. Perhaps their agent or investor is going on vacation for a month and they are frantic to acquire or sell a hot property. In the worst-case scenario, you establish yourself as a local real estate investor.
5. Purchase Probate Leads on the Internet
There are services that enable you to save time and hassles by generating leads for a fee, just like there are services that allow you to save time and headaches by generating leads for a fee. There are many firms that give probate leads without the homework in the area of probate investment. Here’s an overview of two of the most well-known probate lead services.
Before you even consider purchasing leads, you need get acquainted with the procedure in your county. If you can receive leads from web data swiftly and easily, buying them may not be necessary. Buying leads, on the other hand, can save you a lot of time if your county demands a trip to the courtroom. Most investors will be able to achieve a good return from only one or two concluded agreements every year if they save enough time.
The name of the dead, the executor (designated in the deceased’s will to settle their estate), their probate attorney, and the deceased’s name and address should all be included in the probate documents you uncover.
Probate Leads in the United States
Overview: Probate Leads in the United States claims to offer leads for all counties in the United States. They’ve also been in business for 12 years and have a great reputation in the industry.
Pricing: $150 per month for 25 leads, $200 for 50 leads, $300 for 100 leads, or a bespoke fee for all leads in a county.
Probate Leads in the United States also offers great probate education for new investors. For example here’s a deep dive interview with Probate Leads in the United States founder Leon McKenzie on the FlipNerd show:
All of Your Leads
Overview: Provides probate leads, divorce, foreclosure, and relocation leads, as well as vulcan dialer integration and a CRM.
Pricing: All of Your Leads does not publish pricing information. Give them a call to check pricing and availability in your county.
While probate leads are beneficial, you must have access to as many leads as possible to be genuinely effective. FSBO, FRBO, and pre-foreclosure leads are examples of similar leads that can be acquired for as low as $39.99 per month from firms like REDX.
Visit REDX
Three Ways to Buy a Probate Property
Let’s look at the three methods you may buy probate homes now that you know more about the advantages of working probates and how to generate leads.
1. From the Executor of the Estate
When someone goes away, their assets are divided in one of two ways. The executor of the estate will divide the assets to the heirs listed in the will if they have one. If they die without a will (intestate), the court will determine how their estate will be settled and their assets distributed.
If the executor is a woman, she is known as an executrix in certain jurisdictions. In some states, the phrase “personal representative” is simply used.
Why Do Executors Have to Sell Probate Properties?
Because the executor is in charge of settling the dead’s estate, they are also in responsibility of paying any obligations owed by the decedent. Even if the deceased was debt-free when he or she died, a will may specify that cash or other assets be divided equally among heirs. This may include selling the decedent’s possessions to pay off debts or equitably divide cash or assets among the heirs.
Why Do Executors Sell Properties for Less Than Market Value?
Executors mentioned in a will often have a personal or professional contact with the deceased. That suggests they’re either mourning themselves or feeling pressed to assist bereaved heirs settle the estate as swiftly as possible. Furthermore, let’s face it: neither the executor nor the heirs paid the home’s mortgage every month, so any money received from the sale is typically considered a windfall. Finally, the chances of an executor working in real estate are little to none. All of these circumstances suggest that the executor may be unwilling to spend the time, effort, and money necessary to get the highest possible price for the decedent’s possessions.
How to Purchase Properties from the Executor of an Estate
While the procedure varies from state to state and even county to county, the basic strategy is to contact the executor, who is generally reached via their probate attorney. Sending a brief, professional letter enquiring about the property and proposing to acquire it immediately is the greatest method to pitch an executor. Later in the essay, we’ll go over this in further depth.
In certain probate systems, like as Los Angeles, the court must authorize the sale once the executor accepts your offer. This is significant because it demonstrates to the court that the executor is carrying out his or her fiduciary duties to the heirs, also known as beneficiaries.
Because many probate court systems are overburdened, your court confirmation hearing to authorize the transaction may take four to six weeks. Members of the public are also able to bid on the house on the day of the confirmation hearing, but only in small increments beginning at 5% above the accepted offer.
While this may seem to be a competitive system, it isn’t always the case. For example, few individuals come up to bid on low-cost homes. That suggests your accepted offer is very likely to be accepted.
Pitch Executors and Beneficiaries through Direct Mail
One of the most effective ways to pitch executors or beneficiaries of an estate is via direct mail. You only need to write a professional letter to the executor and heirs expressing your interest in acquiring the property after you’ve discovered it’s for sale.
Simply write an expert letter to the executor (through their probate counsel in certain situations) explaining why they should sell the property to you. You might emphasize your volunteer activities in the community, your investment expertise, and the fact that you can close swiftly and without complications. Another tactic that may appeal to the executor or heirs is to offer to pay for expert cleaning services. You may also say it if you’re fortunate enough to be able to provide entire cash or have access to a hard money lender.
Kiavi is our selection for the best hard money lender of 2017, with rates as low as 7%, a 90% LTV, a 75% ARV, and 12-month terms. To read more about how Kiavi may assist you in financing your next project, click the link below.
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The identical letter might be sent to the dead person’s address. While it may seem little, remember that the deceased’s loved ones will most likely be collecting and reading their letters.
Following up after you’ve submitted your letter is crucial. Remember that the probate procedure might take six to twelve months, and individuals often sell their homes after getting ownership.
Letter of Probate Sample
Here’s an example of a letter you may write to an executor or heirs.
‘Their name’ is a term used to describe a group of people who
Dear ‘Their name’ is a term used to describe a group of people who,
I recently discovered that you are the executor for the estate of I appreciate that this is a terrible time for you and that you are probably quite busy, so I will keep my remarks to a minimum.
I’d like to ask about acquiring the property in the dead person’s estate as a local real estate investor and a member of your local town community for the last 25 years.
I may provide an all-cash agreement with no conditions, and close as soon as the offer is approved and certified by the court, in order to expedite the process for everyone involved. In addition, my offer will include the services of a professional organizer and a moving firm to assist in the sorting of the remaining memories and items at the home.
Please contact me at any time if you have any questions regarding the property or require real estate guidance. My mobile phone number is posted below.
Cordially,
‘Your name’ is
{555-555-5555}
Is It Necessary to Send a Yellow Letter?
While yellow letters are effective for promoting pre-foreclosures and absentee owners, probates need greater caution. Hand-addressing your envelopes or experimenting with various colored envelopes, on the other hand, may help you raise your open rates.
2. From a Court-ordered Public Probate Sale
When someone dies without leaving a will (known as intestate), the local probate court takes over and oversees the probate procedure. The court may decide to sell the property in a public probate sale in specific situations. The court will very certainly list intestate property with a real estate agent and perform a public probate sale in the court.
Why Do Probate Courts Sell Properties at or Near Market Value?
Just a single word. Competition. If the court hires a real estate agent to advertise the property, it will be listed on the Multiple Listing Service (MLS) with other properties for sale. While the motivation to earn top dollar is lower than in an usual sale, getting a great bargain from this auction is doubtful. Given that probate courts often require the house to be sold “as is,” the chances of obtaining a good bargain are much less.
How to Buy a House in a Court-Ordered Probate Sale
This functions in the same way as an auction does, with interested buyers going to the court to bid on the property. When it comes to intestate properties, the court will often engage a real estate agent to promote the property for a certain period of time prior to the court sale.
You merely need to show up and bid to acquire a property in a court-ordered probate sale.
3. From the Heirs After They Have Been Appointed Heirs
The decedent’s heirs are ultimately handed title to the property after months of grief and maybe a protracted, unpleasant probate procedure in court. In many situations, they are ready to sale very immediately after they are completed. This is why.
Why Do Heirs Frequently Sell Properties for Less Than Market Value?
Dealing with the property’s upkeep and expenses was most likely the last thing on their thoughts while they went through the grief process. Heirs often opt to sell sooner rather than later now that they have the keys.
They may have intended to clear up and refurbish the property, hire a neighbor to maintain the yard, or drive down on weekends to clean out the gutters themselves. They may not have anticipated the high expense of upkeep or the challenge of screening renters and renting the house from afar.
Surviving spouses may not be able to afford to keep such a huge house up to date.
They will almost certainly want to sell the house fast and without the effort and cost of employing a real estate agent in any of these situations.
How to Buy a House After the Title Has Passed to the Heirs
Buying homes that have gone through the probate procedure and have been handed down to heirs is an easy process. If you’ve previously sent a letter to the deceased’s address, someone in the family is likely to recognize you. All you have to do now is follow up to ensure that you’re still on their mind when they’re ready to sell. You may keep sending letters or combine them into a postcard campaign.
Expert Advice: Private or hard money may often assist you in closing a deal.
Although several of the cases above may include legal issues that cause the sale to be delayed, once the sale is allowed, you must act swiftly to compete with other investors. Having access to private or hard money might be quite beneficial in this situation. If you want to renovate and resell the house, you may need hard money.
“First and foremost, if you want to buy probate homes, you must be patient.” The approval of a probate sale might take a year or more. However, once it has been accepted, you must be ready to act immediately. In most circumstances, having private money or hard money on hand is a good idea, since probate houses often fall into disrepair and do not qualify for traditional financing. It’s vital to engage with a reputable hard money lender you can trust to help you move the transaction ahead.”
Socotra Capital’s CEO, Adham Sbeih
Probate Lead Pitching and Closing: Expert Advice
Money Still Speaks at the End of the Day…
Florida Probate Attorney Long H. Duong
“Many of my probate clients live outside of the state, and in certain cases, outside of the nation.” It’s hardly attractive to become a landlord suddenly. However, approaching them with a 50-cent-on-the-dollar offer is unlikely to make them leap out of their seats. In most circumstances, broker commissions are preferable than wholesale lowball bids.
In many circumstances, engaging the customer isn’t even a big help unless the property is in bad shape. Don’t attempt to persuade them of your value to them. Bring your best offer to the table right away, along with a substantial down payment.
Always keep in mind that the probate attorney may or may not be directly engaged in the final deal, but he or she will be evaluating the proposed acquisition – excessive inventiveness will raise significant red flags. To sweeten the purchase, I’ve seen investors provide credit for legal costs for probate bills in addition to significant bids.”
Timing is crucial when it comes to getting a better deal on a probate property.
Atlanta Attorney Laura French, J.D., LL.M.
“In certain cases, placing an offer on the table early in the process might help investors/buyers receive fantastic offers. However, the investor/buyer must be aware that the probate procedure may cause the closing to be delayed. When I have a client who has received an offer but is waiting for the court to appoint an executor, I recommend a 90-day contractual closing date. This time period may be decreased or extended depending on the circumstances, but in my experience, it is a decent rule of thumb.
After the executor has been appointed, another moment in the timeline where an investor/buyer may acquire a deal is immediately after the executor has been appointed. The house or other real estate is usually the biggest and most difficult item to relocate. A smart bidder who is aware of the executor’s predicament might entice the executor/seller by offering to close fast and without the need of a real estate agent (or reduced agent fees).
Finally, when real estate is the final asset in an estate to be sold, an investor or buyer may discover a fantastic deal. The passage of time, in my experience with customers, helps to remove some of the emotions from the sales transaction. This might indicate that the seller is more realistic about the property’s worth and is willing to sell for a lesser price than the seller had initially planned for the childhood home, for example.”
In certain cases, assisting with the contents of the home might help you get an offer accepted.
Lancaster, Pennsylvania Attorney Patti S. Spencer
“Providing assistance in appraising, moving, and disposing of furniture would be a significant advantage. That may be a real pain, particularly if the hoarder only has a route through the rooms. You’d be surprised how often we receive them. Frequently, family members are unable to handle this load. An auction company isn’t interested in a lot of “things” accumulated over a lifetime. Also, if the buyer can make a cash offer, that might be highly appealing, since many estates have financial issues and want a rapid sale in order to meet other commitments.
The executor and attorney must ensure that they are obtaining a market value price-it would be helpful to be able to secure an appropriate assessment, maybe at a discount, as long as it can be demonstrated to be independent and arms length.”
Video Resources for Probate
Are you interested in learning more about probate investing? Learn more about the art and science of acquiring probate properties by watching these videos.
Frank Chen created an eye-opening film with probate legend Jim Banks over on REI Club. There’s a lot to learn from one of the masters here.
Are you looking for additional information? RE Tech Campus has a video of Mike Torres’ Ultimate Probate Real Estate System. Probate investment methods for about two hours.
Final Thoughts
After a few weeks, contact the property’s next of kin (heirs) to enquire about it. Maintain a professional, respectful, and personable demeanor.
While there’s no question that probate leads may be a lucrative opportunity, they can also be a lot of effort and aren’t for everyone. Many investors turn to REDX to purchase FSBO, FRBO, pre-foreclosure, and expired listings leads. For as low as $39.99 a month, you can get those leads.
Visit REDX
Probate leads are the most affordable and reliable way to buy property. They offer a wide range of properties in different areas, and they provide sellers with an easy way to sell their assets. Reference: us probate leads.
Related Tags
- how to find probate real estate leads
- how to get probate real estate listings
- pre probate leads
- probate attorney leads
- how to talk to probate leads
