Newly purchased Jacksonville home stuck in probate.

26 Replies

Hi, we just bought our 2nd investment home in Jax. Paid cash in Nov 2017 for a 10 day close. Seller agreed and signed the paperwork. 10 days later...probate issues.

I assumed it would sail through escrow and booked a flight out there. Had a  steep discount ticket I had to use anyway. House and location is every bit as nice as expected. We want to keep it, just getting impatient. I did find out the same lady owned the house next door and it sold in Sept but was in a trust.

How long does take? Any way to speed it up? Is my interest really safe?

Thanks in advance,

Jeff

@Jeff Hunter , I also bought a house in Jax that ended up in probate. I actually bought a property from a wholesaler, after sending in the binder with a contract stating a 3-7 day close I was told by Title that the property needs to be probated. The prior owner had no qualifying relatives and the the expedited probate should take 45 days or so. Well after checking in monthly I finally closed 13 months later. The best part of the deal was that the property's location appreciated substantially during the wait.

I learned that the lawyers ( trustee's) were the hold up on my deal. They missed multiple deadlines and the communication between players was very poor.

I am from California also and our probate process is well laid out, which takes 6-12 months depending on the Court calendar .

Good luck.

Yes, I see this property has already appreciated and 2 homes on the same street just listed for rent for higher than what I was estimating.

We'll wait this one out. Currently looking for the next one!

@Jeff Hunter check this one out.

https://www.biggerpockets.com/forums/517/topics/537516-3-2-hot-market-killearn-lakes-tallahassee. 

Thats a nice place but I'm focusing on Jax right now. Have anything there? 

@Jeff Hunter , I have a 5bd and a 4bd in the 32209. Both need rehabbing. I will start the rehabs next month but will look at all offers.

Originally posted by @Jeff Hunter :

Hi, we just bought our 2nd investment home in Jax. Paid cash in Nov 2017 for a 10 day close. Seller agreed and signed the paperwork. 10 days later...probate issues.

I assumed it would sail through escrow and booked a flight out there. Had a  steep discount ticket I had to use anyway. House and location is every bit as nice as expected. We want to keep it, just getting impatient. I did find out the same lady owned the house next door and it sold in Sept but was in a trust.

How long does take? Any way to speed it up? Is my interest really safe?

Thanks in advance,

Jeff

 Jeff, that sounds like a great deal! If you don't mind, could you share the details of this deal that you have locked up? address?, price, reno budget?, end goals for the project?, how did you find it?

Nathan, I found this one on Zillow. Had my agent visit and make video. Looked really good. In the 29th and Chase area. Made offer just under asking price.  Reno budget definitely under $1000. 3/1 for rental. I look for places under 45k and close to rent ready.

What's your story?

Robert, do you mostly flip or do you have rentals?

@Jeff Hunter , I have both. I buy as many as I can as long as they meet my ROI ratio's, board them up and rehab as the area's appreciate. Many times I have buy and hold investors wanting to purchase prior to rehabs completion. I will put the property under contract with the buyer via " letter of intent to purchase" doc. Almost like a turn key product, but I let them find their own tenant. The other properties I flip or hold as rentals.

Very interesting. 

My plan is acquire enough rentals to retire in comfort. Flip a few for fun and profit.

How many do you have at each stage? Using financing? My plan is all cash but may reconsider when buying my personal home.

@Jeff Hunter , A great way to acquire rental properties is to flip 2-3 homes then part of the return to purchase a rental then repeat. This is usually faster than the traditional save and buy.  I keep on average 8-12 properties in rotation. This can be a bit much for the beginners but I am comfortable with the volume. The returns in Jacksonville are very exciting to us West Coast investors. Here in California, especially here in the Bay, we live by the appreciation market. We are lucky to turn a percentage on our monthly rents. In Jacksonville $45k can get $850mo in rent. The equates to 4.5 years for a property to pay for it's self, maybe a little longer considering holding cost.

I rode the Vegas market since 2012 and moved on once my ROI ratios tightened last year. I started investing Jacksonville, Tallahassee, Jackson Miss, Louisiana and the Bay Area. I am currently running numbers for my next hot market predictions.

Very nice. Are you using realtors, wholesalers, or internet sites for your leads? 

@Sebastian Baker , I use all 3 plus other pipelines. I remember starting out I had to search for the deals. Now I get over 100 or so properties sent to me every day or so. I still spend about 3-5hrs a day searching and getting to know my markets.  

Yes, we are realizing that we'd have to flip some for the case to speed up buying rentals. We plan to retire in Jax or close to it so that is where we are looking. I'm trying to imagine running a flip there from the bay area. You mist have quite the network. Care to share a before and after pic?

I found the first place on Craigslist!

Called an agent to represent and worked out well.

That is some nice work! That proves you have a good network. Do you give them guidance or rely on your PM?

@Jeff Hunter , I personally keep a tight grip "micro manage" the crews. The quality of work varies from crew to crew and locations. So to insure my products maintain the quality I demand, I send one of my lead crew members or myself to the rehab sites. 

@Robert Rayford , Looks like you have a solid system. May I pick your brain more? What was your first year like? When did you get into Florida and what was that like? Maybe take this to a PM since we've gone off topic.

We did get some good news on the house in probate. The seller went with a new attorney and is making some positive progress. They had a court date of 01/08/18 but I guess it didnt go well.

@Robert Rayford what area of Louisiana are you working in? I know where I am now the market is pretty slow but interested in what other areas may be worth looking in. I haven't started yet but hope to in the near future and it sounds like you are doing a good business. Rehab pics are nice too. Great Job!

 That’s a beautiful rehab, Robert. What did you use for the flooring? And also how much you end up spending for the cabinetry and granite countertops? If you don’t mind me asking


Originally posted by @Robert Rayford :

@Yuriy Tymoshenko , The flooring is called Flint Creek Oak wood flooring $2.09sft installed myself. The all solid maple wood cabinets were $2100 installed myself and the granite counter tops were $281 for the 26"x 96" slab and the island slab was $487. Installation of the granite was $800.  I have noticed that the materials are a lot higher in Tallahassee especially the granite. I actually truck in my materials from California on my flips in Tallahassee, Jacksonville and Mississippi. 

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