All Forum Posts by: Kevin Griffin

Steven,

  All excellent piece of information to know.  But I think that I'd prefer to be set up correctly in the first place, instead of hoping and then after challenging the IRS in court and losing, finding out the consequences of not doing it right in the first place.

Man, unbelieveable.  After reading this thread, and many others unfortunately, all you see is one or more people saying things that sound absolutely accurate.  Just to read a following post saying the previous post was baloney.  So once again you've wasted your time and come up empty handed; except that if this happens often enough, you start to seriously doubt the credibility of Bigger Pockets.  I guess my comment about all this to Joshua Dorkin is: If you are as passionate as you say about real estate investing (and we are led to believe that Bigger Pockets was formed because of you running into this same problem on other forums, why not figure out a way to ask professionals to give us the correct information, while explaining why a post about a subject is inaccurate, and letting the original poster reply back?  If they were told by you that they have to cite law and precedence (in particular IRS law and precedence), we would get to a legal end point much quicker, and probably weed out many of the folks posting on the forum without correct knowledge.  I agree with Rein Vestor; I'm not interested in spending hours of my time learning about setting up my entity.  I'm interested in learning and making money investing in real estate.  I want to know just enough to make sure I'm operating my entity correctly (meaning knowing about how I'm protected, how I have to conduct my meetings, keep minutes so as not to run afoul of the IRS, read through my operating agreement etc.). In other words, keep it to the minimum. I'm not saying I want to be ignorant about the legal side of my business, just only as knowledgeable as I need to be without almost becoming a lawyer in the process.  Joshua (and anyone else), your thoughts about this?

Thanks Noam, definitely answers my question.

Looking to hear about your experience with these people, and what they charge for their service.  Always want to know about what happened in the background; what they might be trying to hide, if anything.

Mark,

    After giving this some thought, I believe that folks in general would probably go to your point of view far more often than mine.  What I was trying to do was not stir up a hornet's nest with families that don't get along very well.  Unfortunately, in these families, money can be a flash point for disagreement.  Mentioning both the PR and needing the other heirs permission was simply for those acting as the PR, as many in that position don't fully understand the responsibilities of the PR, as this is very often their first time doing it.  As for both you and Rick H. saying my offer of condolence is too syrupy, I disagree.  The folks receiving this letter obviously realize that I'm not a friend or family member.  My intention is to let them know that I am sensitive to their situation, and not come off as too cold and calculating.  (Polite vs. syrupy.)  I believe that the letter lets them know that I'm interested, without pushing it too far.  Rick- I disagree with your idea that the letter is simply to get them to contact me.  My idea is that the letter is meant to pre-sell them on why they should think about using me, and then contact (hopefully call) me so that they can hear my voice and understand my intention is not to swoop in and grab their property without caring about their position in the situation.  Since you are obviously a student of marketing, you must have noticed how big making connection (at whatever level, given the situation and the people in it) has become in marketing.  And is very successful for good reason; it works if the connector understands the situation, and how to approach the people in it and get them what they need (in this case emotionally, and possibly financially).  My letter is meant to make that connection in the right way (I also disagree with your assessment that it is inappropriate; because they know that I am not a friend or family member, and wouldn't take the expression that way.  Polite vs. syrupy), give them what they need emotionally given the situation, and ask if they would be interested in selling the property while at the same time acknowledging that this may not be the right time.  No, this letter sets exactly the tone, and hits all the points I want them to know about.  However, I will have to bow to both of your far longer experience with the probate arena (I'm a newbie), and create a shorter version to split test them for results.  Again, thank you for being willing to give well intentioned advice.

Kevin

Rick H./Mark Pedroza,

    Thanks for the advice.  Don't you think that CCing the heirs might be construed as trying to go around the PR and possibly force the sale?  I took my phone number and email out of the letter before posting it.

Roger - Here is the letter I re-wrote from another letter.  Feel free to swipe it.

Probate Property Rescue Group, L.L.P. Kevin F. Griffin - Chief Rescuer

Personal Representative Name
Address
City, State, Zip

Good Morning (Name),

First, let me take a moment to offer my condolences on the passing of your loved one. While I know this can be a very emotionally sensitive time (both of my parents have passed, and I was the Personal Representative for their estate), I also understand you may be facing some serious decisions with which I may be able to assist you. The reason I am contacting you is that often, real estate property must be sold in order to pay property taxes, any outstanding liabilities, credit card balances, funeral costs etc., and of course, to distribute the proceeds to the heirs. And sometimes, there is considerable pressure to sell the property quickly, in order to satisfy these debts.

I buy real estate, and occasionally personal property found in estates. It is my understanding that the property located at: (property address) may be available for purchase.
I buy property in this area and would be interested in making an offer. I do understand that at this time, selling the property may not necessarily be a priority for your family; and if that is the case, I apologize. But if in the future the heirs do decide to sell, please save this letter to contact me, and I’ll be happy to make an offer to buy.
Some of the advantages I may be able to offer you are:

1) Paying all cash.
2) Buying the property in it’s “as is” condition.
3) Saving you from having to do any rehab, landscaping, cleanout, or cleaning.
4) Saving you from having to take the time to conduct, or hire a company for an estate sale.
5) Closing the sale very quickly, often in thirty days or less.
6) Saving you considerable time and extra attorney’s fees.
7) Saving the 6% real estate commission and attendant fees.
8) Helping to move the process forward towards resolution. (I remember feeling honored to be able to do this one last thing for my parents; but it was quite a load to shoulder.)

Are you aware that you do not have to wait until probate is completed to sell the property? As the Personal Representative for the estate, the court has given you the authority to act on behalf of the estate (with the permission of any other heirs), cash out the asset, and proceed to final distribution. You can check this in the Letters Testamentary which gave you legal authority over the estate.

If you decide to sell the property, there is no reason to complicate the process, run up extra attorney and miscellaneous fees, and pay a 6% real estate commission. If you wish to discuss this further, I can be reached at:

I wish you my kindest regards,


Kevin F. Griffin