Online Investing Daily

If you are considering probate real estate investing as a new career, you should know that the willing sellers you will meet are a key to your success. Not every type of real estate offers such a steady stream of virtual slam dunk sellers.

A seller who is ready to deal with you can eliminate the majority of headaches that normally go with the acquiring of properties you intend to resell. It is in your best interest to be very kind and gracious to the seller. Often times, you will find that the seller is in a position where they need to get rid of the property quickly; this is good for you. They need fast cash and you can help them get to it by taking over the property.

It’s a good thing for you that these sellers you will encounter rarely have any interest in the home at all. It is very likely they were thrust into a situation of home ownership without warning. They don’t want to own the property, maintain it or rent it out. They want it gone, because when it it goes away, they get the cash out of it they need. So, with so many things on your side, all you have to do, is make a decent or reasonable offer to purchase the house.

How can you, as an investor, possibly know what is reasonable? Walk through the home and take note of any repairs necessary to ready the property for renters. Be sure to note exterior issues as well, such as painting and roof repairs.

Take a look at every last repair that needs to be done. Get professional estimates, if necessary. One by one, reduce the offer price by the estimated costs to bring the home up to your standards. Take time to type up your finding and then be prepared to discuss the repairs and your offer price with the seller.

Take the position, that the seller is dealing with multiple investors. If you have a take it or leave it attitude, you could ruin your chance to acquire the property. Always treat your sellers with kindness and respect. Don’t conveniently forget to discuss things, they will resurface at a later date and potentially spoil the deal. Be kind, truthful, and candid.

Although, probate property investing does not require the same hand holding as foreclosure investing, you should always be prepared to be compassionate to the seller. They may have lost their loved one unexpectedly. Don’t make off color comments about outdated interior or exterior finishes. Not only is it inappropriate, but you could easily damage your new relationship with the seller.

Probate real estate investing can be very easy if you always treat the seller with respect and guard your reputation. Always be kind to the seller, you are going to help them and help yourself in the process.

There are so many foreclosure investing courses on the market today. Unfortunately, many of them make wild claims about how easy foreclosure investing can be. You must understand, there is a little known dark side to this type of investing. You must deal with a very emotional and unwilling seller. Probate Real Estate Investing does not have this flaw and it can be just as profitable.

If you have not ever heard of investing in probate properties, you might think that it is just like investing in foreclosed homes. While both investing methods allow you to purchase properties at substantial discounts to market value, it is the process of acquiring the properties that is very different. This slight difference in the two methods can be the deciding factor in your success or failure as a new investor.

In the case of foreclosure investing, you are likely going to deal with a very unwilling seller. In this sad situation, these folks are losing their homes due to financial distress in their lives; they do not want to leave their homes and probably feel as though they are being forced out. In most cases, the homeowner is required to leave the property behind so that the foreclosure investor can help them most effectively. The homeowner is guided through losing their home in a way which will ease the impact to their credit. Sometimes the financial situation has deteriorated so badly by the time an investor reaches a homeowner in default, saving their credit is the best they can do.

Since foreclosure investing causes you to deal with potentially emotional situations, I recommend that you avoid beginning any real estate investing career with it. While some new investors enjoy the possibility of helping a family through a difficult time and saving their credit, their is no doubt foreclosure investing is not for the weak at heart. Even real estate investors who have been investing for a long time, prefer to avoid this type of investing due to the very emotionally draining aspect.

With probate real estate investing, you have a very willing seller. In all cases, you are dealing with someone who inherited a property. The house represents free money or a windfall to them. Since, they did not work for 30 years to pay off the home. This new heir just wants whatever money they can get and they want it FAST.

It is very fortunate that you are dealing with a person who needs money in a short period of time. They see the probate home as a vault of locked money. In many cases, heirs are settling the affairs of the deceased and are cash strapped. Death taxes can be staggering when it comes to estates that were not set up to minimize death taxes.

Did I mention these taxes have to be paid in an extremely short period of time after someone dies or penalties start to pile up? So, if 55% tax looked daunting wait until those penalties and interest start mounting up. By comparison, this method of investing is far easier as you are dealing with motivated sellers in nearly all cases. They are willing to listen to any reasonable offer especially if you have the ability to settle very quickly and get them their cash.

As you can see, while the two methods seem quite the same on first look, they differ greatly due to the time and energy and investor must devote to acquiring the property. Foreclosure property investing will require you to do some hand holding and a whole lot of relationship building with a person who is about to lose their home. Probate property investing will require you to sort out ready and willing heirs from those who are not ready to sell just yet; that is a whole lot easier for a new or seasoned investor.