Some of my students had some additional questions that I thought many of you would benefit from so I’m  posting them today:

Question: My first question is when you make on offer on a home and it needs some fixing does the investor purchase the home up front or after i have fixed it up?

Answer:Nothing like a good strong answer like “It depends” is there Jason?If you do the rehab yourself, you will generally make more money.However, some folks, like me for instance, don’t do rehab and just flip the properties “as is” so that’s the other option you have so you can see there is no set answer.Another factor is what your investors want.Some want finished houses, others do rehab themselves so you can do it either way.

Q. What exactly should i asked the clerk in order to get this information on these probate homes?

A. Just tell the clerk you are researching Probate files and you would like to know their procedures for viewing.They can tell you how it works in your county.

Q. When I make an offer and the seller agrees how long do i have to pay the seller?

A.You will have to have your funds available at closing and the closing date is very flexible.The buyer and seller agree on a closing date and it is normally outlined in the Purchase agreement.   It is generally a statement something like “Closing will occur within six weeks.”Most of the time the seller wants a quick closing and the buyer wants a little more time.    If you the buyer have already built your “investor” list and you know who you are going to sell to, or “assign to” it greatly relieves the pressure on you.

Q. When I purchase the house am I free of any tax liens or any other hidden costs besides repair?

A.Liens do not transfer with title.That means at closing all liens against the property must be satisfied (paid) by the seller.

Q. When you say your going to make an offer with cash does the investor know this and do they normally have that much cash to throw down?

A.My investors do have all cash for any transaction I do.That’s the beauty of building your buyers (investors) list ahead of time. You know they have the funds ahead of time. The other advantage is that if you decide to assign the contract, you know they have the money to pay your assignment fee.   If you begin to work withset of investors and consistently bring them good deals, they have no problem with your assignment fee.  They expect you to make money, just like they do.Sometimes others who you have not dealt with before are not as understanding.   As I have said many, many times, getting the money for these Probate deals is the easiest part of my strategy.

Question: Can you tell me the easiest, fastest, and simple version of the courthouse procedure. Please tell me what to say and to whom

Answer: When working in Probate, there are two different departments of government you will be working with. The actual process of probating the estate is handled by the judicial system.  Now before you panic after hearing the words “judicial system”, let me assure you that you do not need any legal background to check the Probate files. These files are public information and as such are readily available for your viewing at the courthouse in a room called the “Probate File Room”.    Sometimes counties name this room just the file room, the document room, the records department or a similar name. A question or two at the information counter in your local courthouse will get you pointed in the right direction.

Once in the File Room, you can check through each of the Probate records to get the information you will need to contact the estate. Once you have the personal representatives name and address from their file you are almost ready to mail out your letter. So that’s the judicial side of the process.  Very simple as you can see. Now the other department of government you may have to deal with is the county recorders office.  Now I say may for this reason. About 40-60% of the time the Probate file will list all the assets of the deceased. If it does and you see the information about the deceased’s real property, then you will not have to access the county tax rolls at the recorder’s office.   You’ve got everything you need to mail out your letter to the estate.

*** However, not all estates will list all the assets in the Petition for Probate.  If they are not listed, then you need to make a quick check of the county tax rolls to see if the deceased owned real property. If they are listed on the rolls as property owners, out goes a letter. If not, move on to the next case file.

Now here’s a little tip about accessing the tax rolls. Most counties publish their tax rolls online.  However some, still do not. If they do it’s an easy lookup on your computer. Just contact the county, get their url and spend some time researching tax rolls. But if they don’t here’s an easy solution.

Go down to a local title company where you live and tell them what you are trying to do.  Many times they will do look ups for you. They may go even further. In my case, since I have brought my title company tons of business over the years, they have actually given me my own user name and password to their website. This means I can easily log onto their site and research the county tax rolls from my own computer using their site as a conduit to get what I need.

In the system I use, I just plug in the name of the deceased and the county they lived in and if it pulls up a record, I’m in business and out goes my letter.  If it can’t find a record, it’s on to the next one. So do you see how simple this process is?  Not nearly as complex as some would have you think. However, and this is a big however, there is just enough work involved to keep  the tire kickers away. What I mean by tire kickers are those folks who want something for nothing. No work but lots of rewards. It doesn’t work that way. You put in the little bit of work I have described above and you will be handsomely “rewarded”.

Often times, the Probate file contains a will.  If it does, make sure you take the time to read it carefully.  Look for a section in the will called the “Power of Sale Clause”.    This phrase does not appear in all wills but when it does it can be a superb opportunity for you. See if you can locate a phrase “with or without notice” which means if the wishes of the deceased are honored, the address of real property owned will not have to be published.

Because this asset will not be exposed to any competitors, it’s far more likely you can pay significantly below market value.  That’s how you can hit a big time home run. One more thing…….authority for regulating Probate rests with each individual state and county.  Consequently, sometimes terminology can be a little different depending upon where you live. For example, in most states the document you look for in the file in most often called the “Petition for Probate”.

However, if you live in Florida or Texas the form is called the “Petition for Administration”……… same document……. different name.

No matter what it’s called, that’s the starting point for all your Probate research.  That’s the first thing you need to look for as this document will tell you everything you need to know. And finally, many more counties are putting their Probate information online so you need to check with your local county to see if they are joining the 21st century. If they are you can access all your Probate info from your computer.

Feel free to post your questions in the comment box, and I will answer them here.