Buying Real Estate in Probate

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					                  “Buying Real Estate in Probate”
                                  By Dennis Henson

Seven Secrets of Success
in Real Estate Investing
Get your mind right
Seek wisdom
Develop Skills
Make solid plans
Take massive action
Form great alliances
Be Persistent
5 M’s of Real Estate Investing

Mining
Money
Maintenance
Marketing
Managing

“What is “Probate”
Investor Benefits
Motivated sellers
Many with high Equity
Usually with none of their own $ invested
May not be emotionally attached
Not a lot of competition
Perspective is Important

Probate Process--Family
Death
Probate opened & file created
Personal Representative & Attorney
Property distributed
Real property sold & money
File closed
Personal Representative
Someone must take over responsibility
Personal representative
Executor
Administrator
Probate Process—Personal Representative
Death
Accept responsibility to handle estate
Probate File Created
Income for estate stops but not bills
Costs start adding up
Insurance becomes void
Takes a lot of time and effort
Heirs want money but have to pay

Duties of the Personal Representative
Decide if there are any probate assets
Locate assets & manage them during the probate process
Collect and receive payments due to the estate
Set up an estate checking account for money that was owed the decedent
Figure out who is going to get what and how much under the will
If no will--look at state law & determine the heirs and each heir's share of the estate
Value or appraise the estate's assets
Give official legal notice to creditors and potential creditors of the probate proceeding
Give the deadlines for creditors to file claims, according to state law
Investigate the validity of all claims against the estate
Pay funeral bills, outstanding debts, and valid claims
With estate’s money pay continuing expenses--mortgage, utility bills, insurance
Handle details, such as disconnecting utilities, ending leases and credit cards
Notify banks and government agencies -- such as social security, the post office
File tax returns and pay income and estate taxes
Do final state & federal income tax return from the first of the tax year to the date of
death
Get court's permission & distribute property to those named in the will, or to heirs if no
will
And--file receipts for distribution and wrap up any closing details for the estate




A Personal Representative May be Held Liable for…
Improperly managing the assets of the estate
Failing to collect claims & money due the estate
Overpaying creditors
Selling an asset without authority to do so
Selling an asset an inappropriate price
Not filing tax returns on time
Distributing property to the wrong beneficiaries
Distributing property before creditors have been paid

Probate Process -- Investors
Research to find addresses
Send letters
Take calls and determine prospects
See property
Solve problems
Close—fix up
Market and make a bundle
Be a Problem Solver
Stop the costs
Take away the work
Get heirs paid and off their back
Help end the nightmare
Step by Step
Find contact information
Contact the Personal Representative
Decide if you want to see the property
Visit property and prepare offer
Meet Personal Representative
Negotiate deal
Obtain funds and complete closing
To Find Contact Information
Visit estate sales
Look at legal notices
Visit probate court
Contact probate attorneys
Do research at the courthouse
Hire research done
Call or Visit the County Courthouse
Ask address of building with Probate files
Ask how files are available
Books
Local computers
On the Internet
Ask what is allowed in the building
Pen and paper
Lap top
Scanner

Look up Files
On Internet or at courthouse
Find where Probate files are stored
Ask for help with search and tips
Is there a search for Real Estate
Do you know someone to do research
Researching Files
Take pad, laptop or scanner to capture leads
Probate files are sequentially numbered
Usually two digits are year the file was opened
Example, first file of 2009 would be “09-1.”
Get files going back three months or 100
Note the file number where you stop
Next time start where you stopped
The Information
Case Number
Name of decedent
Address of decedent
Personal Representative
PR’s address
Case attorney
Attorney’s contact information
Other heirs and their addresses
Note--Do not try analyze the estate papers

Step by Step
Find contact information
Contact Personal Representative
Decide if you want to see the property
Visit property and prepare offer
Meet Personal Representative
Negotiate deal
Obtain funds and complete closing
Contact Personal Representative
Wait for at least six weeks
Send letters to Personal Representatives
Kind of envelope is important
Hand address the envelope
Hand written letters work better
Keep it simple & offer to solve problems
Letter to Personal Representative
Send Letters to the Attorneys

Activity Example
500 Letters
35 Contacts
20 Viewings
10 Offers
1 Purchase
Step by Step
Find contact information
Contact the Personal Representative
Do you want to see the property
Visit property and prepare offer
Meet Personal Representative
Negotiate deal
Obtain funds and complete closing
When They Call ? ? ?
I’m sorry for your loss
Address of home
Please tell me about the home = worth
Are there any liens or taxes
What is the asking price
Is home empty
When would be a good time to show
Name and address of PR & Attorney
Step by Step
Find contact information
Contact the Personal Representative
Decide if you want to see the property
Visit property and prepare offer
Meet Personal Representative
Negotiate deal
Obtain funds and complete closing
Before You Visit the Property
Start a file
MLS Sheets or Fact Sheets
Tax Appraisal Sheets
Comps or Appraisals
List of Repairs & Cost Estimates
Analyzer (Turbo-Bidder) print outs       www.turbo-bidder.com
Map
Step by Step
Find contact information
Contact the Personal Representative
Decide if you want to see the property
Visit property and prepare offer
Meet Personal Representative
Negotiate deal
Obtain funds and complete closing
Meet with Personal Representative
View the property and fill out repair form
Do they want cash
Do they want a stream of income
Do You Want Us to Take Care of this for You?
Insurance
Cleanup
Property Taxes
Accounting
Realtor and Fees
Fix up
Contractors and Sub-Contractors
Cover Reasons to Act Now
Market conditions are not good
Home values may continue to drop
This home may not sale for long time
Holding costs are very expensive
Freedom from all the Hassel
To put an end to this chapter
Step by Step
Find contact information
Contact the Personal Representative
Decide if you want to see the property
Visit property and prepare offer
Meet Personal Representative
Negotiate deal
Obtain funds and complete closing
Make Offer
Complete offer packet
Put figures in Turbo Bidder
Fill out Contract
Arrange a new meeting
Explain your offer price
Get agreement to purchase
Obtain funds and complete closing
Probate Review
Can be a good way to find deals
Takes time and effort
Dealing people who have lost someone
Works well with a good system
Key to success is people skills
Not a shortcut to riches
Contact information:
Dennis Henson
6902 Shore Breeze Ct
Arlington Texas 76016
Phone: 817-371-8658
dennisjhenson@yahoo.com

       Web site: http://www.dennisjhenson.com

				
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