Executors Make the Decisions
PROBATE REAL ESTATE LEADS HEATING UP DESPITE CHANGES IN THE MARKET LEON MCKENZIE
If you have never invested in probate real estate before, then this is the best time of the year to start looking at probate leads and how you can get involved. Unlike traditional areas of real estate, the probate market offers a significant upside to investors who understand how it works. Sharon Vornholt writes,“ Probate real estate investing is one of my favorite strategies. I have found the folks in probate to be one of the most motivated groups of sellers, as they almost always want to sell the property in the estate. This group of people is what I like to call a‘ captive audience’ for your direct mail; in addition, probate investing is a much less crowded field than some of the other strategies like foreclosures.” 1
Executors Make the Decisions
Executors for a probate are under the requirement by the local court system that they close the estate in a certain amount of time. As part of the requirement, Executors have the ability to sell and make deal on the property that is available. Most Executors are more than willing to make a great deal on a probate property as they are well aware that the home or property may need work. This is especially true if they live out of town. Coordinating intown visits with a busy family life at home may be too much for many Executors to manage well. This makes them even more willing to sell property at a good discount.
One of the best aspects of the probate process is that the leads stay viable for a very long time. This is due to the fact that Executors and family members are in the middle of the grieving process. While you might assume that Executors would put the property on the market right away, in fact, it can take quite a while. Vornholt writes,“ Not only does the executor have to have to sell any property that is in the estate, but they typically have to sort through a lifetime of personal belongings. I know from experience— this is a very difficult job. These are items that were valued by the deceased. Often the family members have a sense of guilt over disposing of things that played such an important part of this person’ s life, so they just put off the whole process. It’ s not at all unusual for someone to contact me about selling property in an estate after a year or more has passed.” 2
What does this mean for you as a new probate investor? You have time. When a property comes on the market, there will be time to market to the Executor. That is one of the most important aspects of a probate business, the marketing plan. Sending regular mailings out to Executors is the most widely used method of offering your services. Making sure that these mailings are sent on a planned basis – usually every month – ensures that when a family is ready to sell property they have your information handy. Says Vornholt,“ Understand that if they are not ready to sell the property at this time, it doesn’ t mean that you need stop your marketing efforts. Continue to check in with these folks to see how settling