Investing in Probate Real Estate: A Guide to Title-First Due Diligence
Probate real estate—properties being sold out of a deceased person’s estate—can be a goldmine for investors. These are often highly motivated sellers with properties that need a quick, no-nonsense sale. But they are also fraught with legal complexity.
Investing in probate without a deep understanding of the title is a high-stakes gamble. You must answer critical questions before you even think about making an offer:
Who is the Personal Representative? Have they been legally appointed by the court with the authority to sell the property?
Are there other heirs? Do they all agree to the sale? A single dissenting heir has to be approached differently.
Are there estate debts? The property may be subject to claims from creditors, including the IRS.
The TIP Method is perfectly suited for probate investing. It helps you map out the entire legal and financial landscape of the estate, giving you a clear picture of the risks and opportunities. This knowledge allows you to solve problems for the estate, build rapport with the representative, and structure an offer that works for everyone.
Probate is not for beginners, but with the right training, it can be incredibly lucrative. The Title Detective’s Playbook provides a detailed checklist for probate due diligence.