Most know my business for the last 25+ years has been Probate Real Estate. I receive questions all the time about what I do and what is the Probate Process over view so I decided to touch on these in a series of blogs. This is the first Topic
WHY PROBATE REAL ESTATE
I track (my team) every probate home that establishes a file at the local County Superior Court and check to see if there is real estate. If so I complete a form we developed called the Probate Tracking Sheet (PTS) which has all pertinent information about the estate. Decease name, court case #, Attorney Info, PR (Person to be Executor and who calls the shots), subject property information (address, estate estimated value, loans if any, heirs who have interest in the property and when the next court session is which is the date the P.R (personal rep) will be approved by court to be Executor (if a will) or Administrator (no will). Same person, same tasks and Authority just different names depending on if there was a will.
My call team (use to be only me first 20 years) call or sends a letter to the PR to see if they will be selling the property during probate or after final distribution. If during probate it's possible now business for us and if after probate is completed (Final Distribution) then it's future business and we farm these PR's.
In my area of the San Francisco Bay Area we track 6 Counties and this provides us with 150+ new files each month with real estate were on average 50% or more are going to be sold in probate and another percentage after Final Distribution. So you can see having 1800 probate homes per year with real estate, with free money going to heirs is a great place to work your real estate business. I stopped working the MLS years ago.
WHAT I DO WITH THESE LEADS
I represent investors (Flip), Landlords (Hold) and Retail End User buyers and all I do after speaking with the estate and finding out their wants and needs regarding the estate property is match up the right buyer for this particular situation. That's it! I also created a probate buyers bank I keep active and when the right probate fits I contact the buyer.
Now when we do a investor deal I'm paid 4-6% depending on numbers, plus a 2% fee on the listing exit after rehab. I can also be the selling agent so I earn 4 sides on one probate (another 2.5%) On my Landlord sales I'm receiving just the one fee for the purchase and it will be 6% as I have no other interest or opportunity until the landlord sells and this may not happen. On the Retail End user sales it's 4-6% depending on the numbers but in a hot market like we have it's usually 6% on everything as Retail buyers are happy to pay it to purchase a home without MLS competition and possible overbidding.
With all this I average 30+ sides per year just with probates and for 2016 we closed nearly $15M in probate real estate.
To recap I don't work on the MLS like 95% of real estate agents and investors looking for properties today. I have a steady supply of leads every month and in fact I'm paid to gather the leads which pays for all my marketing, gas, and business entertainment to run my probate business. I have investors who spend $5000 per month on basically sending letters to non owner, short sale and pre foreclosure buyers which still works for them but I do it a different way and have plenty of business (Free plus Earning). I might add my work week is under 30 hours per week, with a 4-5 day vacation every 3 months. This probate niches earns me Six Figures.
I put what I do online. No, I'm not making living marketing my probate material, I buy and sell for a living. But, I do have a website where you can learn some more and purchase all my material for a very very low fee considering you can add 6 figures to your income.