Any hidden steps in purchasing "PROBATE" properties?

Question

Hi BP Community Member(s),

Six months ago I set out on a cosmic journey away from the manufacturing world with a good friend to go into the business of REI. Generally in the fields of wholesaling/flipping/buy&hold type transactions. We have:

• an idea of our marketing and schedule
• Website
• Lead generator 
• SEO service
• CMA service
• Call handling service
• Cash to buy....
• I could probably list 5 other things that I'm still learning to use! LOL

The Big-Q is... Aside from transferring a title like a normal sale, is there anything that differs in the legal process of purchasing a Probate or recently probated property? Any red flags? Any pointers or advice? All Feedback is Genuinely Appreciated!

Thank You,

Robert Madole

Robert Madole · Answer

@Christopher Phillips

Thank you for the information. I am seeing that time is a common issue with some forum questions being about "can I put it in contract before the probate is over?" I will definitely have to look at each case individually and I am also hoping to get in touch with a few probate attorneys locally in the next weeks. I really appreciate the time and info Christopher!

Christopher Phillips · Answer

@Robert Madole

Every state is a little different, but the only issue for buyers is really time. Properties normally in probate can't be sold until the probate process is complete. The variance depends on if there is a will or not.

If a person dies with a will in Texas, the executor has up to 4 years to file the probate. After the 4 year period, the state will decide.

This also assumes that people want to sell the house. If they don't have to sell the assets to pay creditors, the house just goes to heirs. The heirs certainly might want to keep it or can't get everyone to agree to it.

If the person has a will and probate is filed, there's a notice put out to the general public. Then notices to creditors and beneficiaries are sent out. Sending all this out and waiting for responses is what takes up a lot of time.

How long it will take depends on each individual case. The more complicated the estate the longer it can take. This assumes that no one contests the will.

Averages in Texas come out to between a few months to maybe one year to get out of probate. Getting heirs to sell could take longer.

Christopher Phillips · Answer

@Robert Madole

No problem.

In general, probates, bankruptcies, and shortsales are all waiting games.