As a real estate investor, you must be always looking to add new properties to your portfolio and grow your business. While there are several ways of finding a property that is likely to earn great profits, there is one under-utilized way among the is more likely to earn you huge profits than others. Yes, we are talking about probate real estate investing.
Probate is the term applied to the legal procedure that is carried out for distributing the properties of a deceased one to the legal heirs or beneficiaries.
There are many reasons why investing in probate properties might be uniquely profitable. Here, we have broken down on what makes probate properties ideal for real estate investors.
If you are looking for genuine leads for pre probate in California, you can always connect with us for expert guidance and verified leads.
What is Probate Real Estate?
‘Probate real estate’ refers to the properties that are owned by a deceased person. When that person dies, two things might happen:
- The person might not have any heir or will. In such cases, the property goes to the probate court and the state is in charge of selling the property. If you are a real estate investor, you might want to invest in such properties, as though the court might want to sell it for the highest price, it might still be lower than market price. So, you get a property at a relatively cheaper rate and can always resell it to earn maximum profits.
- The property might be handed down to the heirs. If such is the case, you might still be interested in investing, because more often than not the heirs feel the burden of owning a relative’s property because they already have their own house. Or, it might be that the heirs live outside the state or even outside the country, and they want to get done with the property once and for all.
So, you get highly motivated sellers and can make a good bargain and can get hold of the property at prices lower than the market rate.
How to Find Probate Properties?
It’s now clear how a probate property can be profitable, but how to know if a property is a probate property? You won’t be able to tell if a property is probate property just by looking at the real estate listings. So, what’s the way?
One way to know if a property is a probate property is by going through the obituary listings in the local newspapers.
Another way is to visit the court of the deceased person’s area and find out from the records if they owned a property. If you find they did, the next step would be to find out if they had any heirs. You can even get their names from the court records. You just have to be a little patient and rummage through the records a bit.
Yet another way to find probate properties is to buy probate leads from private companies. There are several companies that deal with probate leads and you can buy that list if you have some money to spend.
Pros of Probate Properties
Probate real estate investment is profitable due to several factors including:
- The sellers are motivated. More often than not the heirs and beneficiaries want to get done with the property they inherited.
- The probate real estate investment market is relatively newer with fewer competitions. If you are lucky, you might be the only investor approaching a inheritor.
- Due to the above factors, you might be able to get hold of the property at far lesser price than market rate. And thus, you will have a great chance of making good profits on resale.
That was all about probate real estate investment and how probate properties can be profitable for your real estate business. If you re looking for verified leads for pre probate in California, you can always connect with us for expert assistance and genuine leads to grow your real estate business.