Anyone interested in working the Probate Real Estate niche needs to understand the real facts. After 25+ years working probates there are a few untrue claims (in my opinion and experience) I would like to address.
#1. FIND PROBATE HOMES AT 50% OF RETAIL EVERY WEEK
This in my opinion is untrue as my 25+ years of experience proved to me that buying a probate at the right wholesale price (max 70% of retail value) is a tough thing to do not to mention 50% of retail. Now to give those who make these claims some cudo's this claim could be right if you found a probate in the Midwest where real estate doesn't move and a probate estate sold them the property at 50% of value after being on the market for 2 years.
This proved their claim of buying 50% under retail and if they did they could refinance and pull most of their money back out, sell on a contract of sale and make a nice monthly cash flow. Maybe they found a buyer who had a bank loan but I doubt the seller received retail as it had been on the market for 2 years without any action. You have to be careful of these claims as I believe many of the probate system providers today don't really have a long history of buying and selling probates. They probably did one so they aren't totally not telling the truth but I doubt if they purchased and flipped every month. I would always check John Reed's Guru Rating service (link from my site) where he rates anyone who is anybody in the particular real estate niche of interest. If they are there they probably aren't the ones for you and to be recommended by John Reed is a major accomplishment. John reviewed my book and buy/sell files in 1992 before I published my book and this is why he endorses my system. This is very important.
I have always told my students if you can do one wholesale probate purchase/flip per quarter you are doing very well. If you are working weekly, follow a proven system and have guidance along the way then you can find success with probates but we must be realistic on the results. Also, with my way of doing probates we also earn from wholesaling for a small fee but not closing, or as an agent bringing a buyer to the estate and double ending the sale. If you have a court overbid situation you can earn quite well but it will mostly be in a retail situation. I have purchased at the court overbid but there has to be the right circumstances to make it work. The best approach at court is to find a sale going for confirmation that is under market 10 to 15%, not listed with an agent and bring a retail buyer with you if you are an agent. For investors you can purchase at court fairly easy at 85% of value, have a great rental and cash flow because of low prices and interest rates in today's real estate world.
I pride myself on helping my probate students learn this niche and have success. I encourage all prospective probate investors or agents contact me before purchasing my course so we can discuss their particular situation as far a real estate experience, expectations and other general questions I like to know. This way I can really guide you on whether this will work for you based on your experience or another option I will give students who need some other help before jumping in the probate arena.
Today in 2012 there are more people looking at probates than ever. Many have jumped on the bandwagon and sell their probate information. I even found students of mine selling probate information and I doubt they really ever did a deal. Be careful where you seek advice. Make sure they have 3rd party endorsements from people in the real estate world and not directly affiliated with the info seller. Follow up is critical when learning the probate system and I provide a Free Student Bulletin Board where my students can post questions, I answer, read questions from other students and interact with students from around the Country. This is a great tool in the learning process or finding partners or agents to assist and network with. I also provide Webinars of my complete system that I often give away free to my students as incentives to keep moving forward with their probate business. I have even returned to my phone consultation with students who want a little more hands on coaching. Weekly sessions and usually just four (1 month) will help jump start what they need to do.
Probate Lead Service: Many are now providing a probate lead service (I included) where you can receive weekly probate leads so you don't have to do the research yourself. I say "Do it Yourself" but there are those who don't want to spend a couple of hours per week. Remember the Probate Leads Services are usually only for Online Court House systems and will not provide you with Leads for court info not online. Most will be spread sheets with line items and not to good. I provide my probate tracking sheet with the Notice to Administer the Estate 3-4 pages plus property info so you have a complete record of what you are doing and I'm cheaper than the other services. Anyway my point is shop around, check out who is providing the probate service, what have they done (verified) in the probate real estate arena, and what kind of real followup are you receiving (from the "Guru" or a trained employee").
More to follow...........
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