People have been investing using real estate for quite some time now. It is no surprise and most do it because of the multitude of benefits that come along with it. Among many, the two most popular benefits would have to be the tax benefits, and the huge returns on investments. Probate investing is basically a special kind of niche that the majority of investors tend to not get into.
This form of investing can be very lucrative for a select few, and not so lucrative for even more people. Whenever a person passes away if they do not have some sort of will of trust their estate or property ends up being probated. What this means is the property gets sold to allow for payment to creditors and all of the assets are then transferred over to the rightful relatives. Unfortunately, this process can last sometimes well over four months.
The house or the estate on the property is normally going to be the absolute most valuable item on the property. This will be sold and all of the cash gained will be divided amongst the heirs. This probably will sound at first like it would be extremely easy, but this is actually the most difficult process and can cause more stress than anything else to the heirs. So there is this huge process that takes a long time, and most investors do not want to deal with this process.
This is often always because they simply do not understand the process, so they do not mess with it. Probate investing is basically going in and buying the property of the deceased before most of the process has even started. This will yield great profits if the investor knows what they are doing. Probate investing allows investors to be able to invest without being in the dark. The properties that are normally bought by probate investors are in excellent shape, and this is because they are not what is called a distress kind of sale.
Probate investing is probably one of the best ways for investors to get their hands on single family, and also two to four unit sized real estate. They are able to get this property at a wholesale price, and then they can flip it for a huge profit. This sort of investing can also be an excellent way to build a collection of rental properties that yield 15% up to 20% equity on the day of closing to allow for some serious long term investing.