W hy Choose Probate Investing? Probates have been my #1 source of leads for more than a decade. I love working with probates, however that’s not true for all investors. The reason this niche is so good is because you will never run out of leads, and the heirs almost always need to sell the property. It’s usually just a question of whether it’s a “pretty house” that will be listed (listen up Realtors ® ), or it’s an ugly house needing repairs and updates that will be sold to an investor. It’s a pretty straight forward choice in most cases. Whether it’s a pretty house or an ugly house, there is so much opportunity here. Why Do Investors Shy Away from Probates? I think there are two main reasons investors are reluctant to work in the niche of probates. that will help you tremendously is being familiar with the terminology used in probate. Knowing these two things will allow you to show up as the “expert” to help them with their problem which is an unwanted house. 2. The second reason is that their mindset holds them back. Probate investing isn’t that much different than other niches in real estate, particularly when it comes to offmarket deals. There will be things you need to learn that are unique to that particular niche. Because the property is part of an estate, it makes a difference in the way people feel about it. Investors often feel like it’s creepy working with probates. Or they feel like they are taking advantage of someone at what is undeniably one of the worst times of their life when they make a lowball offer. They 1. First of all, they just don’t understand how the probate process works. Investors think that they have to know a lot of legal stuff which just isn’t true. Since probate is a legal process, you do need to have a basic understanding of the probate process and the steps involved. Specifically, you need to know when the house can be sold. One other thing > 29 feel guilty even when it’s a fixer upper that needs a lot of work. It’s important to understand that it couldn’t be further from the truth. In almost every case, the property must be sold before the estate can be closed. That means that the heirs have to take care of the business of settling the estate, before the they can collect what they have inherited. Here is the main thing to remember about probate; this is a great niche for investors because the heirs almost never want the house. They just want the cash sitting in that property. This is also a very profitable and untapped source of leads for Realtors. In a seller’s market like we’re in now, a large percentage of those properties will likely be listed on the MLS. I’ve been doing this a long time, but I don’t know of a single Realtor ® in my area that specializes in probate property. As I said before, there is so much opportunity for both real estate investors and agents.