Posted by Felix Lee on September 30, 2005 at 19:39:39:
Thank you very much for the postings, you do make a lot of sence, and saved me a bundle for I stopped thinking about going to one of those seminars and buy a bunch of “secretes of probate properties” books and manuels.
Probate Investing Please Respond!!! - Posted by Jamel OH
Posted by Jamel OH on July 13, 2005 at 23:25:28:
I am new to investing and want to learn how to invest in Probate. Can anyone point me in the right direction. From eveything that I have read on this site, Scott rister’s course is not that good. Thank you in advance.
Re: Probate Investing Please Respond!!! - Posted by Phil
Posted by Phil on July 18, 2005 at 17:20:55:
Jimmy is right on. Forget probate. Don’t look for houses. Look for motivated sellers and solve their problems, you make more and be happy.
Re: Probate Investing Please Respond!!! - Posted by Jimmy
Posted by Jimmy on July 14, 2005 at 08:07:53:
been a trust and estate attorney for 20 years. I would not try to specialize in probate properties. a lot of reasons.
you might catch a probate property every now and then which meets your investment criteria. but you will find the same kind of properties through normal means 100 times more often.
stories about buying probate properties for pennies on the dollar are GROSSLY EXAGGERATED. It has never happened in my practice, nor the practices of any other reputable probate attorneys. there have, no doubt, been instances where probate properties were sold under adverse circumstances and below market price, but the same thing happens outside of probate too. It has nothing to do with the probate.
in many states, the Executor (also known as the Personal Representative or Administrator) is exempted from the property condition disclosures which ordinarily are required of sellers. This factor can bring about a small (usually very small) reduction in the purchase price.
Botton Line: Probate properties for sale can be found in the MLS, along side a thousand other properties. Don’t expect bargains. You can also find them in the newspaper or in FSBO listings. if you catch a bargain, be thankful. It had nothing to with the fact that the property was in probate, and everything to do with your own detective work diligence.
good luck
Re: Probate Investing Please Respond!!! - Posted by Natalie-VA
Posted by Natalie-VA on July 14, 2005 at 10:38:58:
Jimmy,
I’ve read a similar response from you before on this topic. I think it’s good info from the attorney’s perspective.
What about this… are estates always probated through an attorney? Is it possible that the executor or personal representative may handle the details of selling the house without an attorney involved? I am in Virgina.
–Natalie
Re: Probate Investing Please Respond!!! - Posted by Jimmy
Posted by Jimmy on July 14, 2005 at 12:07:18:
probate properties are, by definition, being administered in the probate court. There is no law that requires an executor to hire an attorney to make all the necessary filings, but it is very rare for a non-lawyer to have the know-how to do it.
Every state has different laws. Most states have expedited (non-probate) procedures which allow certain properties in certain situations to be sold directly, and without court supervision (or notification to the court).
There are thousands of trusts out there, which people implemented in order to avoid probate (and for a lot of other valid reasons). Sales by trustees are not court-supervised.
HERE’S THE POINT: Finding properties below market value is everyone’s goal. You are no more likely to find such a deal in a probate sale, or trustee sale, than for any other type of sale. So why focus on them when there are 1000 times as many “normal” sales out there.
There is nothing special or unique about probate sales or trustee sales that makes it more likely that a buyer can “steal” a property.