Wholesaling Houses and Negotiating Probate Deals
09. Jun, 2009 
View Comments
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!
If you have not got your FREE “Mini Workshop” Get it Right NOW!!!
If You Liked This Post You Might Also Like....
