In my Probate Real Estate Business of the last 30+ years I have been often asked why would an Executor take a wholesale offer when they don't receive the money once escrow closes, so what is the motivation.
This is a great question and makes sense to ask so let's try to answer this based on my experience.
As I track all new probate files weekly, I always start my approach the same way. I contact the estate and ask if they will be selling the estate property.
I have several answers which keep coming up.
"No we are not" (what they really mean is Not right Now).
"We're thinking about it but want to wait until probate closes" (they don't understand probate)
"Yes we want to sell it give me an offer" (this is now business).
As a Probate Agent, my focus is to find out what the Executor's motivation is and then help guide them. For the purpose of this blog, let's talk about why the Executor will take my wholesale offer prior to the end of probate, if the heirs are not going to receive the money until what is called the Final Distribution.
The reasons are simple.
The Probate Home many times is vacant and the heirs are worried about vandalism, squatters, deferred maintenance and want the property sold as fast as possible. The Executor may live out of State and moves into the probate home in order to keep an eye on things during the 4-7 month process. Their lives are placed on hold and if you've never been involved in this Probate process as an Executor, then you don't know how time consuming and frustrating this process is.
If the Executor sells the home, what is usually the largest asset, is now liquid and sitting in the estates bank account. This helps the probate move faster as now the estate attorney and everyone involved knows there is cash to pay the bills and settle the estate. Everything picks up when this situation happens so for some Executors this could be relief by liquidating the real estate of the estate.
This situation is more important then top retail dollar.
It's that simple, not every executor is going to feel this way but remember we as Probate Agents earn from those Executors who want to sell now (wholesale or retail) or after the probate process so we really don't care when the time line is. We just want to know what their motivation is and help them realize it.
If we wholesale a purchase from one of our investors and is agreed upon by the Executor and heirs then Great!
If we have a retail sale to a end user buyer who can pay retail because the Estate wants every dollar available then Great!
The point is we want to earn from Probate Homes and we will structure our service to whatever the need or desire is once we establish a conversation and relationship with the Petitioner/Executor....
If you can understand this concept proven by my 30+ years of Probate success, than you either as an investor or Agent can increase your annual production and increase you income overall just from working Probate Real Estate.
If you'd like more info about me, my probate system and Probate Real Estate in general...