Buy Probate Real Estate at Deep Discounts
Posted by admin under: Auction Schedule Jan 06
Last week I received an e-mail from Sherri in Whiteville, NC. She told me she was very surprised at the results she had gotten using my system to purchase homes out of probate. “I mailed out 12 letters and got two phone calls and one appointment to view a house,” she said.
However, the reason for her note to me was this. “When I asked the Personal Representative if he would be flexible on his price,” he said, “Sure … the house didn’t cost me anything!” Sherri said she was a little scared to ask him the question and was really surprised how willing he was to negotiate.
Now I know I’ve mentioned this before, but there are two primary reasons why Probate Real Estate can be bought a such a deep discount.
1. “The home didn’t cost me anything. It’s free money for me.”
2. “I don’t have time to deal with another project. Make me an offer!”
That’s it right there folks. Put yourself in the PR’s position. If you were to inherit a house today, would you be open to an offer? Especially in today’s real estate market with all the foreclosures out there? I know I’d be real, real flexible.
“How about a slightly used Yugo and 6 months worth of gas?” “Make it a year’s worth and I’m in – tow her over here!” Well, I wouldn’t be quite that desperate. It would take at least a Pinto! But you get the idea.
The other reason I hear all the time for the seller accepting a deeply discounted price is, “I just don’t have time for another project. Make me an offer!” Again, put yourself in the PR’s position. Are you ready to carve out time in your busy schedule to handle all the details for fix-up and to resell? I’ll bet your answer is, “Not really!”
So those are the two primary reasons why the Probate field is the “hottest new untapped market” for real estate investing.
When I was in New Orleans recently at a Real Estate Investors conference, I was a real hot commodity. A lot of the real estate investors there wanted to talk to me about Probate. Why? Because two of the presenters mentioned what an untapped market Probate was. Once I was introduced, I immediately became “the guy everyone wanted to talk with!”
So you see, even among experienced investors, this is still a relatively unknown topic. In addition, the Probate market will only continue to grow, unless the medical profession figures out how to keep us all around in perpetuity!
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Friday, January 6th, 2012 at 7:38 pm and is filed under Auction Schedule. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.