Smart Investors Buy Houses That People Want to Sell
One key that savvy investors know to make extraordinary profits is to operate in markets where the sellers are motivated and excited to sell. Buying houses from folks that want to sell them is easier and you get better prices. Ultimately the price you pay for the property determines how much you will make – so buy where they are the cheapest! When you have a motivated seller who has little “skin in the game” you have a promising situation for you as a buyer.
In the case of Probate Properties you have heirs that have inherited a house that is usually vacant. The heirs want to sell the house and get the money out of it. The vacant house is of no use to them an just chews up money in real estate taxes, insurance, maintenance and has a lot of potential for vandals and break-ins. Thus you have a very motivated seller. Often the houses are not easy to sell to a retail buyer because the décor is dated – meaning old style flooring, window treatments, countertops and appliances.
Great news to you as an investor because these issues are easy to fix but prevent the heirs from selling to a retail buyer.
How Does a House End Up in Probate?
Lets start by explaining how properties end up in probate.
When a homeowner dies, unless they were married with a living spouse the house is then controlled by the Probate process. The house will then usually be sold unless there is one heir and they are living there.
There are Many Probate Properties!
Today there are record numbers of probate properties because of an aging population. In Dallas there are approximately105,407 people over age 65. Those folks are in a time in their lives when significant numbers will pass away. A little over 60% of the population owns their own home so that means there are tens of thousands of homes going into Probate. Those are unwanted homes that cannot be sold to a retail buyer, hence a huge opportunity for you as a real estate investor.
Buying Out of Probate is a Golden Opportunity
That is why probate is a golden lead source! You have property owners who don’t want the property, who want the cash instead, and an investor is their best buyer. They have no cash into the property and are not using it. It is a perfect situation for you!
Robert Diamond (“Bob”) Attorney at Law
Bob Diamond will be speaking more on Probate investing at the meeting so you can learn how you can add Probate into your investor’s toolkit.
About the Authors:
Robert L. Diamond, Esq. is a licensed attorney who, along with his brother Ed Diamond, MBA teaches successful real estate investing strategies. Bob is the author or co-author of four courses on real estate investing and is known for his technical knowledge and talent in teaching students how to succeed in real estate regardless of their current financial or credit situation. He is also known for coming up with the new, creative and effective real estate investing strategies.
Edmond D. Diamond, MBA is a fortune-500 background executive whose expertise is in locating lucrative and timely business opportunities and getting exceptional performance from businesses and people. Ed has been investing in real estate for over twenty years. Ed started his corporate career in 1985 with Pepsi Americas and rose to the CEO level before retiring from corporate life. Ed joined Bob in the real estate business in 2009 and over an 18 month time period helped Bob double revenue.
The Diamonds spend the majority of their time on teaching investing and doing their own real estate investing. Bob Diamond received his law license in 1993 and Ed Diamond received his MBA in 1990. Ed and Bob reside in suburban Philadelphia.
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