(TRandle) Folks, I'm going to ask Scott some questions and allow himj to answer in an interview format and then I'll open it up to general Q&A.
(TRandle) Scott, ready?
(Scott244) Tim, do you want me to open up the forum with any questions?
(TRandle) Scott, can you please give a high-level discussion of probate?
(Scott244) Let's delve into it and start out because Probate is simply the most mis-understood and overlooked area of creative real estate investing today. Many profit centers in Probate of which real estate is the primary, but not only avenue of opportunity to make big money.
(TRandle) I was waiting for more, sorry for the delay....
(TRandle) What are some of these opportunities?
(Scott244) First off before talking about the opportunities in Probate I think I need to just lay the ground work for what exactly "Probate" is because its a foreign term to so many...done
(TRandle) Okay, please do so...
(Scott244) When you boil it all down Probate exists for the benefits primarily for CREDITORS!!!
(TRandle) Please explain further for those that don't understand the basics.
(TRandle) Let me change tracks. How would I go about finding out the process for my state?
(Scott244) When someone passes away with $100K in the bank and has a $5K VISA bill, the debt doesn't go away and heirs get all $100K.....creditors have to be paid and Probate is a public process which makes this work for real estate investors.
(TRandle) We're having technical difficulties. I apologize, but we'll be right back.
(Scott244) The Probate process is 90% the same for each and every state. People die, they have to have assets liquidated in order to pay creditors and the public process in the way this is handled makes it work in each and every state.
(TRandle) How do I find out more about the actual process for my state?
(Scott244) The process about your state is not as much as you should be concerned about, but rather where to access information on the Probate process. ONE marketing approach and avenue of opportunity will come out in the classified and/or court recording publications and that is called the "Notice To Estate of Creditors"
(TRandle) What's the best way to approach executors or heirs?
(Scott244) There is usually one point of contact for the estate and that person will be called "executor" in some state and "Personal Representative" in others. I've always found the best way to approach these individuals is with a much more emphathetic approach to their personal situation. Remember, many of these people have lost a loved one near and dear to them....so its definitely a softer approach than other traditional real estate m
(TRandle) What are the basic probate steps?
(Scott244) Good question as everyone needs to have a basic and general understanding. Remember though that you're not studying for the Bar exam of an attorney. Back to the question though ususally within 30 days from the date of death a Personal Representative (Executor) is appointed. Inventory and assets of the estate are to be accounted for shortly there after and then its a matter of expedient or slow process depending upon the progre
(TRandle) Scott, you mentioned earlier other profit centers. What are those?
(Scott637) MANY, many other profit centers in Probate. For example I've made thousands of dollars by controlling/buying/selling goods and assets of the estate like household goods, cars, lawn equipment, etc.... just anything of value. Make no doubt that real estate is what we all go after but I look back now of all the money I left and it ills me. In fact for example I make money being an Inheritance Funding broker for deals. Its all ab
(TRandle) I'm going to open it up for Q&A now. Please show Scott the courtesy of allowing him to answer one question at a time. Thanks.
(wholesaleron) Do it all over again 3 things do differently be more successful quicker?
(wholesaleron) Do it all over again 3 things do differently be more successful quicker?
(rpgoerlich) so what your saying is you can find properties in probate and pick them up at fraction of the cost ?
(Scott637) #1 I would have NOT tried to become full-time real estate investor by starting out being a landlord. I would have wholesaled properties to generate cash first. #2 Emphasized marketing as primary. I use to think just because you could put a mortgage on a house you had a deal..dumb! Its all about the strength of the deal #3 NEVER put my name in a loan--I have many loans out there now but they're all in other people's name
(Scott637) Probate is like ANY other creative real estate venture when you're talking "fracti the price. The great thing about Probate real estate investing is that ALL of your creative real estate techniques come into play and are applicaubject-to, buy & hold, short sale.
(rejobber) Is probate only applicable if the deceased has debt?
(Scott637) Not to my knowledge. I can't quote state statutes on the ins and outs on each and I don't have an answer why some estate have no debt while others do and they both end up in the Probate process. I don't try to learn the process of A-Z on the whys as much as I focus in on using it as the tool to locate more motivated sellers than ever before.
(wholesaleron) I’m doing Mostly wholesale fixers to other investors, how maximize my profits instead of just a quick $4k and then never see any profit again.
(ligem) so what is the approach and how do you find out who you should contact
(traceybradley) What is the primary way you market for these properties? (I.E. letters, newspaper, etc. )
(Scott637) On the question about how to maximize proftis other than a quick $4K.....well, if I understand the question right you're saying "I only made $4K and then what..I always got to go find another deal". YES, that's exactly it and it all goes back to marketing which to me is like a hungry animal I feed and the more I feed it (ie...invest in marketing) the more deals I get and thus I CAN'T close on each and everyone thus I have to who
(Scott637) To the question on how do you find out who you should contact, my answer is there are many ways I teach on the process to profit from Probate but just one approach is using a direct mail approach to the personal representative/executor of the estate.
(wholesaleron) I'm Sorry Scott. First Thanks for being here. Next, what marketing method do you find most effective in reaching general sellers?
(ligem) what document contains the reps name and how do I locate it?
(Scott637) I make no bones about...I DIRECT MAIL OUT THE WAZOO!!! I do a number of other things but quite frankly I just beat my head silly thinking of additional lists I can develop and/or buy to direct mail to inviduals who have a large degree of flexiblity of price and/or terms. I want to spend as much of my time fielding calls (they've been prescreened) and making offers.
(Scott637) The document that contains the reps name will be located in the "Notice to Estate of Creditors". That is just one way and easy to locate the name and mailing address of the personal representatives.
(wholesaleron) Scott. Thanks again for being here. What would you say your basic system comprises of? Generating leads, mail outs, follow ups and then what? Calls etc. Postcards?
(wholesaleron) What is the progressive steps from lead to deal do you usually take?
(knucs) Do you ever find that the living spouse is motivated often enuf to market to?
(Scott637) First off on generating the leads, iits all about finding out if someone is motivated. The majority ARE NOT, so don't sweat it. I do use a direct mail approach as one way to generate the leads and then from that point it really in a nutshell isn't different than negotiating other forms of real estate except that you will have to get a court to approve the sale in order to get clear title.
(Scott637) Oh yes, the living spouse is always motivated enough to market to but sometimes that person is not the personal representative and I want to be dealing with the personal representative.
(Scott637) Couple more questions here and we'll wrap up on a great session.
(wholesaleron) Scott. Do you market directly to probate attorneys?
(ligem) is it worth asking a list commpany to compile a list for you or is it best to scan the newspapers for the notice to estate?
(Scott637) That is yet another way I find my deals through Probate. Those guys are the ones making out like bandits in Probate real estate. Realtors having pocket listings have NOTHING on Probate attorneys doing deals.
(wholesaleron) how do you work with them (attorneys) to get a deal?
(Scott637) I teach my staff the ways I want information taken from various places and to get it to me and then set up in my system that runs on autopilot.
(Scott637) Last question here answered.....with attorneys I approach them from the standpoint of if they have a client that needs a property moved quickly to keep me in mind. I direct mail to them quarterly and keep my name out there.
(wholesaleron) thanks scott! Take care all the best
(Scott637) Thanks a great sessesion and if anyone one wants to e-mail me directly I can be reached at scottrister1@yahoo.com and for listing of all my wholesaling, marketing, probate systems are available here at TREC.!!!!
(TRandle) Scott, thank you very much for your time. We really appreciate it.
(rpgoerlich) Thx Scott & Tim
(knucs) ditto and your course is great
(rejobber) Thanks guys!
(wholesaleron) thank you Tim
(TRandle) thanks for coming and participating
(TRandle) I've got to grab a bit to eat, but the chat rooms always open. Stay as long as you like.
Scott Rister is a successful full-time investor living in Dallas, TX. Closing 72 deals in one 9 month period, Scott's property acquisition company, One-Stop Realty, LLC maintains current holdings in four states.
After building a sizable portfolio of keeper properties that was not getting him where he wanted to go, he discovered the art of wholesaling. Since that time he's done hundreds of deals and focuses exclusively on motivated sellers using technology and a targeted marketing approach.
Scott Rister's approach is based on the belief that the successful real estate investor will leverage the best use of his/her time by implementing systems that can run on auto-pilot with minimal maintenance.
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