What Does “Probate” even mean?
How Can I Make Money With Probate Deals?
A trillion dollar market and how it can explode your real estate business…
First, what is “probate”…it simply the legal term to describe the process of gathering the assets of a deceased person to pay debts…
Estate- property/assets of individual
Decedent- person who died
Executor- person named in will to manage the Estate
Personal Rep– person representing estate before official appointment
Beneficiary– person who receives assets from will
Each state has their own specific probate laws, but the process is generally the same.
If you die intestate, your estate has to be settled via the courts (probate)
Intestate- No Will
*There are 3 Main Probate Phases*
Case is filed and Will is admitted to court for verification. Someone is appointed Executor, they get a certificate of authority (pic below)
All debts/assets must be researched and satisfied sometimes by liquidation of assets.
All heirs must be contacted…”aye grandpa died you’re entitled to ___”
(They go thru all your bidness…bank accts, property, valuables, etc…and pay whoever you owe
After all debts are paid, the rest of the Estate is distributed to heirs/beneficiaries according to the will or based on law if no will. The Executir must then submit an accounting to the court of what happened with the Estate.
Aight…so now you wanna know how you can take advantage as an Investor…
Ensure the PR has been granted permission to manage the Estate (you need to SEE the Certificate of Authority)
You can purchase the property at this point…
One of my strategies is to hit the attorney up and get them to warm transfer you to the PR in case they need/want to sell… (many of them do)
Think about it…the attorney potentially stands to get paid upon the sale of that property, so they have a vested interest in you getting the deal!
This process takes time and it’s a delicate situation, it can take 3-4 months to close but Im making double my average spread and opportunities to acquire nice properties at a discount.
This is a complicated lead type and requires savvy to successfully put this deal together…in other words, I wouldn’t necessarily start with this lead type as a newbie.
But once you have done some deals and have your process together, Probates are a great lead type to focus on!
At the end of the day…Hopefully you are in this business to help people FIRST and make money SECOND.
It’s not easy dealing with the estate of a deceased loved one…
Keep that in mind as you execute this strategy…always be considerate and respectful!