All Forum Posts by: Christopher Blanco

@Hailey Brown

I started marketing to probate. I used a software program I wrote to pull cases and addresses down from the probate website. I then worked on crafting a message (it took a few tries to get it right, need to be really sensitive). 

For the rentals, I am taking a different approach. I am picking the market with a high demand for rentals, creating an avatar for that renter, then going after properties that match that description. Makes marketing a whole lot easier when you have a target. 

@Alyssa Dyer Wow so much has happened since this post! I did complete 4 flips, but it wasn't until I discovered how to market to potential sellers off-market that I had any success. Since this time I have hired a coach and plan on expanding my business to mainly focus on rentals. Nice to connect with you, shoot me a message if you want to talk more. 

I use Specialized IRA Services. Been good so far.

https://specializediraservices.com/

Good luck! Always remember that stuff can go sideways fast. Keep an eye on your budget and your contractors. Make sure you have enough in contingency to cover anything that can and will go wrong!

Others have said it. Be a lender, but make sure if you are lending to a market you don't know that you have boots on the ground in that market that can help you make decisions. I know deals on paper that aren't really deals in many places. 

Then you need to decide if the house is worth aggravation. I would just ignore the advances, thank him kindly for the nice words, but keep the focus on the business at hand. 

Couple things strike me in this post:

1) Best way to compete with other investors is to NOT be like other "investors". Did  you sit down and talk with the family about their needs? What are they doing with the cash? What needs do they have that the other investors don't care about that you can solve? Is there anything other than the house in the estate that needs sold? 

2) A property can be sold before the estate clears probate. The executor of the will can be given the power to liquidate the real assets of the property with Letters of Testamentary. Check the documents on file with the probate court, if there is no restriction on the sale of the property, work with the the executor, the beneficiaries and the estate attorney and  to liquidate the property inside of the estate. That money can then be used to pay bills for the estate. 

If you are going to delve into probate, you should understand these nuances.

I would try and 1031 it, unless its in my SD Roth IRA. Then I don't worry about.

 I would not hold a 1-4 rental for longer than 7 years without an amazing (20%+) return. After 7 years Cap Ex and maintenance will slowly eat all of your profit, even if you account for it. If you truly account for 10, 15, 20, and 25 year items in capex you will see what I mean.  In addition, I want to convert my tenants into buyers so I can upgrade the properties in my portfolio. 

 If you are planning on holding a rental for 30 years you got bigger losses coming your way...