Do inherited properties make good subject to deal?

13 Replies

I'd think most new owner doesn't refinance the property, so the loan still under the person who passed away. That should make the new owner more open to subject-to deals right?

or did I miss anything?

Yes, often the case. 

There ought to be a catalyst, however, such the decedent's mirtgage is delinquent I'd better yet, in default with lots of equity remaining. 

I've done many, many probate deals whereby the decedent had a mortgage, family didn't know (or claimed ignorance of its existence).

Where it can be tricky is getting the loan servicer to provide the things you'll need as part of you due diligence list; things your seller typically won't have or know how to help you.

One of those items is a copy of the original promissory note signed by (now deceased) borrower. 

Buying sub2 is only one of the many tools you'll want in your toolbox. I suggest you create the checklist and docs in advance and become familiar with them now so you know how to use them when needed.

@Eric Z.  has given the answer.  My experience, like his, is that a house with a delinquent mortgage and lots of equity, is one of the best targets you can find in the probate field.  The family has neither the willingness, nor the ability, to deal with the situation, and you are the source of help for them.   Both Rick and myself are available to help you in more detail.

@Dave Metsker  ,

Thanks for the suggestions. Well, in my market delinquent mortgage and lots of equity in any condition can easily be listed on mls and sold for higher amount cash than I can offer. Also I don't really see them that often(at all).

Any suggestion on the strategies for lots of equity, out of state family member, but not delinquent mortgage, i see these a lot more often?

@Rick H.   , thx for the advice. would you mind pointing me to a good resource for the checklist or docs I should be familiar with ahead of the time?

Dave M might provide you some free advise if you give him a crack at the deal, too.

@Eric Z.  

My best source has been "red tag" code violatons. No MLS listing wll be accepted by a real estate broker without probate authority. Team up with an investor-friendly probate attorney. He/she will be happy for any referals, since the statutory probate attorney fees are quite generous, for the property values in your area. I also offer an inheritance advance referal source in my marketing materials.

Originally posted by @Dave Metsker :

@Eric Z.  

 I also offer an inheritance advance referral source in my marketing materials.

 Can you explain what that is?

@Wesley Merville  I lend to the heir(s) up to one-third of the cash value of the estate, as a lien against the proceeds, which, of course, come from the sale of the house.  This gives me leverage to make sure I get first shot at the purchase of the house.  This can be done in just a few days, as soon as the equity in the house is confirmed.

Originally posted by @Dave Metsker :

@Wesley Merville I lend to the heir(s) up to one-third of the cash value of the estate, as a lien against the proceeds, which, of course, come from the sale of the house.  This gives me leverage to make sure I get first shot at the purchase of the house.  This can be done in just a few days, as soon as the equity in the house is confirmed.

 That sounds amazing!  How do you find out about these probate deals consistently enough to turn it into a focus for a business?

Originally posted by @Dave Metsker :

@Wesley Merville  

There are several paid probate lead suppliers.  

Dave - sorry those are not probate leads - typically probate leads have case numbers

these leads have no case numbers... just saying brotha

Michael Rae

Had a guy that tried to sell me probate leads and I kept putting the "non-profit-for-me" project on the back burner. I'm not sure when it was but my nose twitched every time I thought about the guy.  

Like when Lassie, the dog, would run to the sheriff and bark, trying to tell him that Timmy was trapped in the old mineshaft or something. 

The guy didn't like my cautitious actions, told me do and sent me several blasts of offensive emails suggesting he was living better through chemistry or the grape. A totally unnecessary behavior and bridge burner that will motivate me more to tell people NOT to use his service. As a professional, I won't disclose his name here but Mark Pedroza told me  another backstory I didn't like. Maybe he'll chime in.

Needless to say, the true colors were displayed and, again, the twitching nose saved me from an embarrassing business relationship by telling me to 'WAIT, WAIT!'

Good nose, yeah boy, good nose. Now find me a profitable deal.

Originally posted by @Rick H. :

Had a guy that tried to sell me probate leads and I kept putting the "non-profit-for-me" project on the back burner. I'm not sure when it was but my nose twitched every time I thought about the guy.  

Sorry for my confusion, but if you don't pay for leads like "@Dave Metsker" suggested, how do you find them?  (Sorry, coundn't figure out how to @mention him)

Originally posted by @Wesley Merville :
Originally posted by @Rick Harmon:

Had a guy that tried to sell me probate leads and I kept putting the "non-profit-for-me" project on the back burner. I'm not sure when it was but my nose twitched every time I thought about the guy.  

Sorry for my confusion, but if you don't pay for leads like "@Dave Metsker" suggested, how do you find them?  (Sorry, coundn't figure out how to @mention him)

[Suggest you use @? and look at bottom of post frame to select prior posters]

 I think you missed the point. 

I had a guy want me to promote sales of his leads. I don't need his leads because I already have a very substantial flow, upstream of the source so I don't need him. He needed me. I did not care to profit. He got impatient with my progress to support him and sent offensive emails that alienated any chance of him selling thru channels i either influence, control or own.

Your choices to create lead lists is to either pull your own records from public records, pay a professional researcher or find a commercial data provider. 

The first choice gives you the greatest control, however if you don't know what data to pull or how to do it efficiently, you stand a high chance of burning out. Same with paying a court researcher. Online court data may be convenient, but U.S. iften incomplete and lacking proper contact info for parties.

A data provider will typically offer in spreadsheet former that's convenience but they chose the fields and format. Expect to pay $2-5/record for quality leads. This can all be a relative barrier to entry for new people operating on a shoestring budget. 

Alternatively, you can create lead sales funnels that are magnet in attractive the specific transaction types and build very profitable Dealflows. 

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