The real estate market is so hot right now, and properties are selling quicker and more competitively across many different markets and cities. This is one of the best times for individuals who are new or experienced in real estate investing to scoop up properties at a discounted cost and to make a significant return on investment by forcing the appreciation thru value added repairs.
One of the best strategies real estate investors can use to get great deals on properties is by pursuing and acquiring probate leads. Most inheritors of probate properties look to sell quickly because they don’t plan to use the home as a primary residence or to manage it on a regular basis. By pursuing probate leads using lists, you can find very promising deals.
Here’s an example of a very recent property we just acquired thru the strategy you’re about to learn.
- Inherited / Probate Lead
- Owner passed away and left the property to his close personal friend free and clear. The owner responded to a direct mail campaign and postcards.
- Purchase Price $165,000
- Renovations and Value Add Improvements $40,000
- After Repaired Value – $280,000 – $300,000
- Net Profit / Equity = $75,000 – $95,000
Defining probate leads
So what are probate leads and why are they so lucrative? Simply put, probates are sellers who have inherited a property from a relative that passed away. When someone passes on, their estate undergoes a legal process where it is put in probate and eventually transferred to the heirs. In cases where the heir lives in a different location (such as a different state) from the property, they will probably look to sell the property rather than incur the costs of managing it on a daily basis.
That makes probate leads one of the most promising channels for obtaining great deals on investment properties. The tricky part is finding probate lists that you can use to access heirs and make an offer.
What are the characteristics of probate markets?
You may be wondering why probate markets are highly sought after by real estate investors and why we focus on this niche. Indeed, they provide a source for off-market properties that are often below market price, have a willing and motivated seller and deferred maintenance.
Probate markets are characterized by 5 main factors:
- Owners who inherited properties that they’re looking to sell relatively quickly.
- Owners who are not ready/unwilling to manage the property on a day-to-day basis.
- Properties that are in or close to foreclosure
- Properties that the owner does not use as a primary residence
- Properties normally have some deferred maintenance that needs completed driving down the price.
How to find probate lists/leads
Realtors, investors, and other real estate stakeholders often look for ways of finding probate leads and generating lucrative probate lists. It can be challenging to know where to start in terms of finding the right probate leads to pursue. Here are useful strategies you can implement to get started.
Check local probate listings
In most local municipalities, probates are listed in newspapers, municipal websites, or the public county offices. Every city is different. Ask a good estate planning attorney or probate attorney and they’ll know right away how those properties can be located in your market. You should regularly check these listings to identify new leads that may pop up on the probate list. Add those leads to a spreadsheet or software CRM like Realeflow or Freedomsoft.
Refer to the county courthouse
Probates are typically listed by the local county courthouse. You may have to make a trip down to the offices to check for this information, but some counties make them available online.
Start with a Google search of the local courthouse that you’re targeting, and call them to find out where the information can be accessed.
Work with local probate attorneys
A clever way of staying ahead of the probate curve is to develop a relationship with a local probate attorney. Estate planners are also excellent resources for identifying probate leads. They are able to give you the insider scoop on such properties before others have a chance of pursuing them.
Purchasing probate lists
There are some companies that have detailed probate leads and the give you acces. They’ll typically charge 15 cents per record. If you need somewhere to start, purchasing these probate lists can be helpful as a source of information.
The final step is to set up the mailing campaign to these leads.
Return on Investment
Purchasing a list of 1000 probate leads may cost approximately $150-$200
The postcards will be approx. $1 per postcard.
For 1,000 letters the total cost is approximately $1150 -$1200 Bucks.
Our return on investment of $75,000 – $95,000 from this one mailing campaign proves that the Return on Investment is just insane!
Probate lists are a significant tool to add to your real estate investing toolbox and can easily help you acquire investment properties or wholesale deals at the lowest price so that you can turn around and make quick cash, establish passive income as a rental, or make a big, life-changing profit as a flip.
So what do you do once you find your awesome probate list deal? Lucky for you, I am hosting a training class about my 3 Step Quick Win Profit System for flipping properties and achieving financial freedom. Click right here or on the banner below to register for the class.