Probate Lead Lists
How can real estate investors find and use probate property lists to do more deals and achieve their business’ full potential?
Probate property leads may be one of the lessor leveraged types of lead lists used by real estate investors. Yet, they have incredible potential for those looking to add value and serve others, while boosting deal flow and profit.
So, what are these types of leads? How do you use them?
Probate Properties & Lead Lists
A probate property list is much like other types of lead lists which real estate investors seek out.
These are among the most common:
- Foreclosure lead lists
- Divorce filing lists
- Private lender lists
- Absentee owner lists
- Lists of real estate agents
What these all have in common are the ability to find, secure and disposition motivated seller real estate deals. Probate property listings are no different in that respect. Yet, they can have some unique advantages.
What are Probate Leads?
Probate real estate listings are properties which have entered the probate process. That means someone has passed away and their property is going through the legal process of being distributed.
Not all properties go through the probate process. According to Legal Zoom, some of the ways real estate owners and families can avoid their assets being dragged through the probate process and their information being made public in the court system include; using trusts, naming beneficiaries on bank accounts and retirement investment accounts and holding title to real estate as joint tenants with rights of survivorship. Of course, most people don’t do estate planning well. Some may have wills, but far more probably don’t or at least don’t have them done professionally or keep them updated.
Effectively, whether there is a will or not, and whether a property goes all the way through probate or is inherited in another way, it can fall into this category.
Why Probate Property Lists?
As with foreclosure and bankruptcy or divorce leads, probate properties are a sign of sellers who need urgent help. As these are not as well known as other types of real estate leads, investors are more likely to find less competition and better value in working with these owners and decision makers. That means more profit while providing a valuable service.
These leads can be used for:
- Fixing and flipping houses
- Real estate wholesaling
- Acquiring rental properties
Some owners envision they will leave their real estate to their spouses or a cause or the next generation. However, in reality, that often just isn’t an attractive option nor the best option for heirs.
By the time a property is inherited is can be very aged or no longer in an attractive neighborhood. Heirs simply may not want it nor want to live there. They’d much rather have the cash, or be able to buy something else instead. Others who are left behind just don’t have the financial or physical ability to manage or maintain the property. There may be a lot of repairs. If not, there can still be taxes, insurance and a mortgage to pay off. There may be negative emotions attached to the property. Or heirs may just not want to deal with management. These are all opportunities to step in and help.
When someone passes away, it may not just be the primary residence which is up for sale.
There may be:
- Second homes
- Rental properties
- Vacant land and lots
- Vacation properties
- Commercial real estate
Who to Contact in These Situations
There are a variety of scenarios which can play out when someone is deceased. This will impact who is involved in the decision making, who has influence and who has the ultimate say. In some cases the asset will be held by heirs, in other cases by the courts or executors will be required to liquidate them.
Potential contacts may include:
- New heirs to the properties
- Executors of the will
- Family law and probate attorneys
- Realtors with probate listings
How to Effectively Use Probate Leads to Find Real Estate Deals
No matter how you find probate property deals there can be emotions involved at some level. They aren’t always what you’d expect. Yet, it is important to be tactful and respectful. Being insensitive is probably not going to get you far.
This is primarily an opportunity to help those involved solve their needs. That may be simply a financial challenge or business one. This is true even among relatives. For others there will be a lot of emotion and other logistical challenges. They may not want to have anything to do with the property. Or they may want to be sure it is handled well. Or there may be belongings which may need to be managed from a distance. Find out what the issues are, and provide a tailored and caring fix.
How to Find Probate Properties
There are a number of ways how to find homes in probate and inherited property leads.
- Obituaries in the local newspaper
- Local estate auction signs
- Realtors with probate listings
- Direct and inbound marketing to heirs
- Referrals from probate attorneys
- REWW lead lists
To begin your Probate Property journey, begin with our Probate Property Specialist Certification at REWW.com