Real Estate Investment in Probates

Hi Folks,
   Hope your week is going well. Although it is my favorite time of year, when cool weather should be here, it certainly does not feel like it yet!

   The broad umbrella of Real Estate Investing could be carved into many, many different niches, and one of those that you might find interesting and rewarding is what is referred to as "Probate Real Estate Investing".

   What is "Probate"? Probate is the legal process used to distribute estate assets of a person who has died, as per the Stockmarketsreview.com website, in an article written by Simon Volkov, a California real estate investor who specializes in helping individuals with probate real estate investing.

   This specific investment strategy involves buying real estate held in probate, and as Volkov writes, "In the best cases, probate takes about six months to settle", with the possibility of "complex issues or family disputes surround the estate", which can drag on for years. How can Probate Real Estate Investing (REI) help? It can help the heirs liquidate Real Estate before the probate settles.

   The question is; "Why would heirs need to liquidate real estate holdings"? There could be many reasons, as Volkov says, and adds that one of the most common reason is that "the estate has insufficient funds to maintain the property." For example, the estate is responsible for making payments for property related expenses, i.e. Mortgage Payments, to avoid foreclosure. In addition, these expenses include homeowner’s insurance, property taxes, utilities and possibly even homeowner’s association dues. Out-of-town heirs need to maintain the property, but cannot from long distance, so often the estate will hire outside help, such as landscaping and pool maintenance).

   Real Estate Investors - Perk up your ears....

   As Volkov writes; "The majority of heirs do not know they can sell real estate holdings during the probate process." However, as he adds, "Some states require court confirmation prior to selling probate property." (and reminds us that "experts recommend working with an attorney when buying or selling real estate suspended in probate"). Probate real estate investing is a special niche not many investors know about, writes Volkov. Untapped market?

   What do you need to begin? Know your market, know the judicial process, and head to the local courthouse, as Volkov suggests, to see where probate cases are handled, since probated estates are public records and can be viewed by anyone. He suggests checking the info in the decedent’s last will and testament (Volkov says that this will include contact info for the estate administrator, along with the "decedent’s wishes for distribution of assets and personal belongings."

   The will also contains property info, and he suggests a search of the deed records, in which you can check the chain of ownership, and if there is currently a mortgage on the property (If so, the estate may need to sell the property quickly, says Volkov). Initial contact will be made with the estate administrator. This can be done by phone, mail or in-person, and Volkov reminds us that you must be respectful and offer condolences.

   Footnotes on Probate REI:
   * The estate administrator is authorized to make decisions on behalf of the estate.
   * If multiple heirs are entitled to the property they must all agree before the sale.
   * Delays can occur if court confirmation is required.

   Overall, some fantastic info from Mr. Volkov. This is something that is not heavily capitalized on currently by Real Estate Investors, so if you give it a try, please give us some feedback.

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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #Probate #RealEstateInvesting #estate #heir #foreclosure #REI #will #testament #deed #mortgagenote

HomeRun Homes And U.S. Legal Forms Announce A Strategic Alliance

Hello Again,


   This is just a quick note to announce some great news:

"HomeRun Homes And U.S. Legal Forms Announce A Strategic Alliance"

For the full details of this new partnership with "America's One Stop Shop for legal forms & documents", the full Press Release is featured below:

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For Immediate Release:

Robert Eisenstein
HomeRun Homes
(631) 676-3609
(631) 574-2420
http://www.Lease2Buy.com

HomeRun Homes And U.S. Legal Forms Announce A Strategic Alliance

Ronkonkoma, New York, February 7, 2011 - HomeRun Homes (www.Lease2Buy.com), the long-standing marketplace for Rent to Own Homes, has formed a strategic alliance with the legal forms and documents mega site, U.S. Legal Forms (www.USLegalForms.com)

A Partnership Based on Necessity - Legal Forms For Rent to Own Deals.

U.S. Legal Forms, which is referred to as "America's One Stop Shop for legal forms & documents", has been in business since 1997, and carries over 36,000 state-specific legal forms. Robert Eisenstein, the CEO & Founder of HomeRun Homes, points to the fact that visitors to HomeRun Homes, "are here to find or sell a Rent to Own Home, and they need the proper forms to complete these deals.", and, "since U.S. Legal Forms has been rated '#1 Legal Forms Product' 6 straight years 2006-2011, we evaluated them and thought it would be a great fit for our customers."

Eisenstein says that as a result of this joint venture, visitors can now browse and select the forms that they need via a link on the home page of his website, as well as in the Log In User Control Panel, which is provided to those placing Ads on HomeRun Homes. Some of the forms that would be of particular interest to those working on a Rent to Own deal would be the Landlord Tenant Forms, Deed Forms, Home Sales Forms, Owner Finance Agreement, Purchase Contracts, as well as many others that are offered by U.S. Legal Forms.

HomeRun Homes is working towards a very productive and helpful year for it's visitors and customers, and Eisenstein is hoping that this year is even busier than 2010. Last year, the company celebrated their 8th anniversary, launched a website for foreclosure assistance via Rent to Own, and spent a large amount of time and budget in complying with the new Government Standards for Web Security Compliance, referred to as PCI/DSS.

For additional information on the topic, "HomeRun Homes And U.S. Legal Forms Announce A Strategic Alliance", please visit http://www.Lease2Buy.com

ABOUT HOMERUN HOMES

Founded in 2002, HomeRun Homes is a Centralized Marketplace which helps people Buy or Sell a Rent to Own Home, a Commercial Property, or to offer Home Services nationwide and globally to the thriving Rent to Own market

- END -
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Thanks again, and have a great week !

Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

TAGS: #renttoown #landlord #ownerfinance

UPDATED: Buying a Foreclosure? This is a Must Read...

Hello Everyone,

Welcome to Friday !

We have been receiving a lot of questions about foreclosures from people who are asking us specific questions on how the foreclosure market works. In order to paint the best picture for you, we have spoken with some of our peers who are active in the foreclosure property marketplace in one function or another.

Sheriff Sale guru Marc Sherby uses a 10-point checklist to tackle all aspects of purchasing a foreclosure home. His Process is as follows:

1. Do Your Homework (research the liens, mortgages, comps, bid price, etc. before going to the auction). NEVER bid on a property without doing this first. Joanne Cleaver of ForSaleByOwner.com says that it is important to, "Understand the micro-economics of the neighborhood. On some blocks, a foreclosure is an exception. On others, it's the rule. This affects your ability to quickly get good comps when you've fixed up the foreclosure and are trying to resell; this also affects its marketability as a rental." Additionally, Jan Green, an Arizona Realtor, suggests to, "check the health of the Home Owners Association (HOA)" (if applicable), and to, "Check the date of the last reserve study that was done in the HOA, making sure it was within the last year if not 6 months. A lot can change in 6 months in a neighborhood. If it was 1 year, then check the number of foreclosures currently in the neighborhood and ask if more than 10 - 15% are overdue in paying, another hint." She also suggests checking to see if, "there is an Environmental Report available that will disclose information the surrounding area for airports, landfills, soil conditions or other abnormal findings that could pop up."

Alfred Miller President, Private Lending Solutions, LLC, adds that it is important to know, "how long it takes to sell a home in your price bracket", to, "study the sale prices of comparable homes in your area.", and to remember that, "the sale is for the home as is."

2. Set up your support team (real estate attorney, accountant, realtor, Title Company, contractors, insurance agent and so on). Find people you are comfortable working with. Miller concurs, and suggests that you, "Find an agent specializing in foreclosures."

3. Learn the rules for your particular area FIRST. Rules and “conditions of sale” are different for each county and for different types of sales. You can obtain a copy of these rules the Sheriff or auctioneer. Green, who works in the Hot Arizona market, states that, "The deed issued in Arizona for REO's is a "Special Warranty Deed" and not a "Warranty Deed" that is the typical deed in a regular sale. Why is this important? There is no title coverage for past problems with the title prior to the bank taking ownership of the home. And always always buy title insurance to cover the transaction against any liens on the property, no matter the type of financing used to purchase the home." Know your market !

4. Get the list of auction properties. In most cases depending on your area, you can obtain the list of properties going to auction for free. If the sheriff or auctioneer has a website many times the lists are also posted on them.

5. Line up your funds BEFOREHAND. In most cases you will not be able to obtain a traditional mortgage beforehand to pay for the property. This is one thing many people do not realize. Cleaver agrees, and suggests to, "Have lots of cash. Banks will negotiate a little, but they will mainly listen if your money talks loudly.", as well as Miller, who suggests that you get, "Get pre-approved for a mortgage."

6. Go look at the property (before you bid), and try and determine if it is occupied or unoccupied. Green suggests that you, "Knock on neighbors' doors to ask for details about the area. Neighbors can be your best source of information about a neighborhood and can provide the names of others serving on the HOA board.", and Cleave similarly says that you should, "Get neighbors on your side. They are well aware that the foreclosure next door has eroded the value of their own property. Position yourself as as hero, not as a bottom feeder."

7. Know how to bid. Bidding is a psychological game as well as numbers game.

8. Have a plan. What type of property are you looking for and where? Is the area up and coming or in decline? Are you buying as your own personal residence, as a rental, or to rehab and flip? If it’s a flip, what type of buyer will you be looking for? How much money and time can you commit to this project? Know these answers ahead of time because as the old saying goes “those who fail to plan, plan to fail.”

9. “Sit on your hands.” Begin by attending several sales and just watch what goes on. Most sales happen very quickly, usually in just a matter of minutes, so you’ll need to pay close attention. See who the players are and take lots of notes.

10. Get Educated. Many of the people you will be bidding against are auction pros and you’ll need to become one yourself. Reading books, attending training seminars, joining local real estate investing groups, or finding a mentor are just some of the ways you can educate yourself. Additionally, you can check out, "Will It Work In My Town" for some good suggestions, as well.

Green has some additional tips that will be of huge help:

1. Always change the locks immediately upon purchase. REO homes are oftentimes on master keys for other homes in your area. If a home will be vacant for some time, get a security system as the home has a history of being vacant. If it has a pool, make sure it's maintained weekly. Check any other systems around the house to make sure they are being maintained. This way you'll maintain your equipment and have activity at the home.

2. Purchase a home warranty from a company that will cover pre-existing conditions ("hidden defects") for foreclosures.

3. Obtain a very thorough home inspection by a licensed contractor (verify the inspector is licensed, bonded and insured - Lots of home inspectors are not renewing their state licenses in this economy).

4. Check under every sink and water source for past water leaks. If there were leaks and you're still interested in purchasing the home, get a MOLD inspection.

Do you have any additional tips that will help our readers? Please feel free to comment here and let us know.

Have a Great Weekend, and Happy Rent-to-Owning !




UPDATED: Top 5 Blog post for 2010 (For more information, CLICK HERE)