Rental Property Investor · Little Rock, AR · Member since 2016 · 157 posts · 143 votes
I'm looking into direct mail marketing for probate leads and ran across an Arkansas state statute (Ark Code 28-51-303) which states in part:
(2) (A) If the sale is to be at public auction, the property shall be sold for not less than three-fourths (3/4) of its appraised value.
(B) A private sale shall be for not less than the appraised value thereof.
For those of you who market for probate leads, are there similar restrictions in your state laws? I'm sure that the heirs can still sell inherited property for whatever amount they wish, but I'm wondering if provisions like these tie the Personal Representative's hands such that the PR couldn't really sell the property to an Investor who is using the 70% rule? Thanks!
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
9y
Yes.
California has a voluminous probate code, which is pretty darn practical, all things considered. After all, we're a state of $39.8MM people, last time I checked stats.
There are always qualifications, exceptions, and work-arounds to deals.
You are attempting to do all your filtering at the beginning. Essentially, a marketing funnel with a narrow neck at the onset.
I suggest you open the funnel, at least initially, and find out what prospects are responding to then adjust your pre-market scrubbing based on what you're getting and you skills at problem solving.
Rental Property Investor · Little Rock, AR · Member since 2016 · 157 posts · 143 votes
9y
Thanks @Rick H.! I'm very new at this and am having difficulty understanding your suggestion about the filtering and opening up the funnel. By opening up the funnel, are you suggesting mailing to the personal representatives to see what sort of responses it generates, or is your suggestion something broader than that?
The probate information that I am able to find online for my county provides the name and address of the decedent and the name and address of the personal representative (usually an attorney). I'm an attorney so can somewhat speak their language, but I don't practice in that area. My initial thoughts are to mail to the personal representatives and to mail to most of the probate lawyers in my area in the hopes that there are work-arounds. I plan on setting up a lunch with a probate lawyer (a co-worker at a large firm long ago) to get her input but am trying to do some homework beforehand so that I can ask intelligent questions and don't come across as a waste of her time. Thanks again!
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
9y
it's easier to overcome a JD than, say, an engineering degree. Most Attorneys have the capacity to envision creative solutions whereas people with engineering backgrounds often have difficulty when non-absolutes and abstracts are used for illustration.
Point is, I suggest you mail to a wider audience of PR's employing a campaign which uses letters in a series of multiple touches. Provably most effective are letters which address a single issue that is encountered by the PR at that stage of probate.
Unless you are soliciting legal assistance (probate poaching) I would not bring up your legal standing or that you are a member of the State Bar (unless required by statute), as this will place you in the "them" camp in the eyes of the non-pro fiduciary.
I still suggest you learn the lesson the tip jar on the counter with the widest neck usually collect more change.
Rental Property Investor · Little Rock, AR · Member since 2016 · 157 posts · 143 votes
9y
Ha! Unfortunately, I have to overcome both :)
Thanks again for weighing in! At this point, I'm still deciding which audience to target first (absentee, tax delinquent, probate, high equity, foreclosure, etc). I've enjoyed the podcasts on direct mail and definitely plan on the multiple touch approach and will at least initially try a few of the above audiences to get a feel for what might work best given my location, abilities, and liabilities.
Rental Property Investor · Little Rock, AR · Member since 2016 · 157 posts · 143 votes
9y
The more I've read and listened, the more I've come around to the idea of that 1 - 2 punch. Not long ago, my wife overheard me listening to a wholesaling podcast and commented "we aren't planning on getting into wholesaling are we?" My response was very much along the lines of your 1 & 2. We'll flip or BRRRR what we can and try to monetize the rest by passing them along to other investors. Thanks again for sharing your experience!