By Jimmy V. Reed
No matter who and where I have taught, the Million Dollars question has always been “how do you find a Deal”? Cause folks, without a deal, its just real estate. It doesn’t matter what area of investing you are in whether its buying, selling, or holding, it will always comes down to the numbers and do they work. So my goal is to show you what I believe is one of my top five ways to get a deal, and that is probate.
Probate is a guaranteed source of real and personal assets. We don’t always like to talk about it but there are two certainties in life, death & taxes and both are involved in probate. Our objective is the real assets i.e. real estate property that usually through a death ends up in a situation where taxes are due. It has always amazed me that 70% of Americans do not even have a will. While the other 30% do they may still own it in their name which means it is still going to go to probate.
I always encourage other investors to hold real estate in some sort of entity to avoid the probate process. This is why my partner and I decided to create a how-to training book on finding deals through probate. Our program is “The Hidden Treasures and Profits of Probate” In this book we teach 7 ways to buy probates.
The basic process to them all is getting to the Executor before anyone else can. The Executor is the person in charge of probating the will. They actually are now the seller who must satisfy not only the will but also the taxes owed on the estate or on the property. Most people with a will usually make a big mistake by making a relative or a friend their Executor. This is where we come in as Problem Solvers.
We help them by buying the property at a cash discount. In doing so we solve the tax situation and take the property as is solving the problem of having to repair it so it can sell. I can only give you the basics here, but in our manual we go in step by step details for all 7 methods of buying probates.
Remember the basic process is getting in and tracking down the Executor, and then the inventory lists, then we get the contact info. Then it’s off to the tax office for the assets to be tracked down. From there we use our tracking form and pre written letters to start the initial process of making contact. Once contact is made we use our conversation form to ask the right questions. Once we have all our info its time to make an offer. Understand the main goal of the offer is to offer just enough cash out of pocket to satisfy the courts and any debts. We can get very creative on the purchase price, what matters to the Executor is getting the money owed for taxes and removing the problem from them to you.
I hope this can open your eyes to the possibilities of doing what others won’t, yet it is a very simple and easy process to do in the Probate arena. And most of all, out of the 4 million probates in the courts right now, you would be approximately one of only 5% of investors out there who are working them.