Wholesaling Houses and Negotiating Probate Deals

If you have been in the real estate investing arena for anytime I am sure you have heard of the term “probate investing.” Simply explained probate investing is working with people who have inherited a property and need to sell it to settle the estate. The great thing about probate is that you are dealing with sellers who NEED to sell. This is not something they are thinking about or mulling over….this is something they NEED to sell.

This is exactly the type of seller that we are looking for. I have found that if people have other options but selling it can be extremely difficult to make a deal. Let’s face it, in the wholesaling business we need to get the property discounted quite drastically to make it work. However, probate real estate gives us a great opportunity to do just that without making a seller feel like they are taking a ridiculous discount.

Probate properties can also be known as heir properties. In fact, the more heirs the better when it comes to negotiating these type of deals.  This may seem crazy to you know but by the end of this post I hope you will see what I am talking about. There is one that I am working on that currently has 13 heirs! The bad thing about this many heirs is that you have to get 13 different people on board wtih the idea of selling the property. The good thing is that a discount does not seem so bad when you have that many heirs.

For example, I will give you the details on the deal that I am working on.

They wanted 60K for the property

I offered 30K for the property

Normally this would look like a 30K discount right?

There is one thing that you need to emphasize when you are dealing with a probate scenario and that is what each Heir is going to NET. It’s all abou the money right? When you are dealing with the Executor of the will this is what you need to say

“Mr Seller, If you were to get 60K for the property that would mean you would end up with roughly $4,600 in your pocket right?? If I could offer you $2,300 in your pocket and a fast closing do you think we can get this wrapped up??

That is exactly the way I broke it down to my seller and she accepted it. Right now we are waiting for the case to work its way through the legal system and should hopefully close up on it next month.

The important thing again here is that you see what we just did. We just took a 30K discount and turned it into a couple thousand dollar discount! Because there are so many heirs involved it takes a little from each one and doesnt “hurt” as bad. Use this tool in your negotiating arsenal and you will make money!

You can use this principal on higher priced properties as well and it works beautifully!

If you want to find out more about probate investing click here===================>Probate Investing

Let me know your thoughts and comments on this.

Later!

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  • Berry

    Hey Alex, I’m about to send out my first postcards. Do you think I should begin with absentee owners? Thanks

  • admin

    Absentee owners is a great way to start a campaign….just make sure you set all of your parameters correctly…

  • Berry

    Would you suggest Preston’s course on probates as well or should I focus on Chico’s Absentee owner plan to begin. I’m on a limited budget for marketing but don’t want to analyze to paralysis. Thanks

  • Bonnie Kovach

    Hi!

    Never had much trouble finding the sellers, but sure would like to know where to find the buye rinvestor/

  • admin

    You can buy buyer records from listsource in your area and then when you have a property under contract you mail them and send them to a website with the property information. If you dont want to do that you can just have them call you. If they are serious buyers in the last six months they will be glad to hear from you 🙂

  • Investing in real estate is
    absolutely the fastest way to go from a position of struggle and
    scarcity to a position of wealth and abundance. That is why Probate investing is preferred a lot…………………