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Probate Profits: Agent Level 2, 3, 4 and 5 Opps to Earn

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Real Estate Agent with EXP Realty

Level 2, 3, 4 and 5 Transactions

On the majority of the Probate Homes I come in contact with most won't be a proper discounted purchase for myself or my client so what I do is then look for a retail buyer, or take the listing and and another agent sells it.   This is "Level 2 and 3" Probate Opportunities.  With Level 4 it's the only time I take a client and overbid in court at the confirmation sale and most times this is a waste of time.  I have a check list which tells me if the Probate Home going to court is a potential opportunity then depending on the numbers I take a investor or retail client, overbid and generate a commission.  You can stay busy full time just doing this if you prefer.   Most investors, buyers and agents who know anything about Probate Real Estate start at this stage of the probate process and are really missing the boat.   Level 5 is how I farm probates which alone, if you do this right can make a Probate Agent a top producer just by itself.

Here are some examples of what I have done over the years with Level 2-3-4 and 5 Probate Homes

This was a Level-2 Transaction in which I earned a $7,600 commission by listing and selling the property itself. We couldn't buy this property at the price I required to earn the minimum Level-1 profit I wanted, so I listed the property and sold it to a buyer from my probate buyer's bank. Investor's Level-2 transaction enables you to assign your contract to another buyer who is willing to pay more. You earn an assignment fee without even closing the sale!

This was a Level-3 Transaction, I could not buy at the right price, so I listed the property. Unable to sell it myself, I earned a 3% commission as the listing agent while another agent sold it. If you're an agent you need to know how to do this. You are missing $ thousands in commissions. 99% of agents never even know the property is going to be sold until it's to late.  Probate Agents can earn six figures.

This was a Level-4 Transaction, my last chance to make some money on a Probate. Through my tracking efforts, I found a buyer for this home and overbid the original offer at the court confirmation hearing. The original bidder lost his purchase because he didn't know how to protect his low price offer and keep it out of court. He should have read my book! $52,000 Profit in 60 days! If you are a Probate Agent working Level 4's there are precautions you must take and understand so you protect your clients deposit as this is the only Probate Opportunity where you or your client has to place a 10% deposit.

 

$52,000 Profit in 60 days!
Level 4 in San Leandro.
This probate opportunity was purchased by a friend of the neighbor of the deceased for $205,000 and was going to court for confirmation. Through my research I knew this was a good one, all the indicators I teach you to look for were present. I checked the file, found all the terms, checked the exterior of the house (roof, foundation, etc) and determined the price we would bid to. In court we surprised the purchaser when the court asked if there were any other bidders. The estate attorney's real estate agent, who received all her probate listings, was there with an investor to overbid in court. He and his investor, both of whom knew me, were very surprised to see me stand up to bid when the court administrator asked for other interested parties. Bottom line, we purchased the property for $228,000, and resold it for $280,000 sixty days later. We did no work on the property as it was in top shape. The original bidder lost the house at a price he could have purchased it for if he had known how to keep it out of court. In addition the attorney's real estate agent lost a commission as he didn't have the listing, and finally the investor, who probably felt he had a lock on the property, walked away with nothing. Again a great example of no one knowing how to do this, EXCEPT ME! $52,000 GROSS PROFIT!.

 

$52,000 Profit in 60 days!
Level 5 in San Leandro.
This one took some time to get into escrow but what a find. The executor was in Arizona, had an attorney there and one here locally who was a jerk. I dealt with the executor, made a friend and showed him my expertise in probate real estate. We purchased this probate for $225,000 in April of 2001, and were actually going to keep it because it had a potential lot split. We sold it for $315,000 "As-Is" and realized a $60,000 profit after renting it out for 8 months and spending a little money fixing it up.

There is so much Probate Real Estate business in all areas and it only takes about 5-10 hours per week to track everything.  If you are interested in more information check out my site: www.probate-realestate.com

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