Things I Learned Buying Probate Properties
Hey everyone, this is Brad from probateresource.com. We created this platform to serve as an online resource for anyone going through the probate process, providing answers to all your questions. We’re also a real estate solutions company specializing in probate and inheritance properties. We buy properties for cash all over the U.S., including single-family homes, commercial properties, and land. If you’ve inherited a property, we’d be happy to make you an offer. Additionally, we have a fantastic network of real estate agents across the United States who are specialists in probate and inheritance. If you’re interested in the traditional route, we can connect you with one of our preferred agents.
Now, let’s dive into today’s topic. I want to share what my experience with probate deals over the years has taught me. I’ve been involved in buying properties, particularly in the probate niche, for a long time. I completed my first probate deal in 2017, and since then, I’ve handled hundreds of them. Each deal has taught me something valuable. Every transaction comes with its own set of complexities—there are always challenges to navigate. If a deal seems too easy, I often expect it to take an unexpected turn because complications are inevitable.
So, what have I learned?
Patience
First and foremost, I’ve learned the importance of patience. These deals do not happen overnight; they take time, and sometimes they don’t close as quickly as you would like.
Issues arise, such as probate documents being filled out incorrectly. We need to obtain certain documents from this person or that person, and we have to contact an heir to sign a document that allows us to sell the property. Additionally, we require the probate attorney to petition the court for various matters, and all of this takes time. I have learned to be patient and understand that these processes do not happen overnight.
Anticipate Complexities
When dealing with probate courts, we are subject to the workings of the court system, which moves very slowly. Some counties and municipalities function more efficiently than others, and we also have to navigate interactions with people involved in the process.
For example, many of you may have seen news headlines about a Georgia probate attorney, whose name I won’t mention. As of July 2024, this attorney was removed from the bench due to issues related to incompetence as well as personal conduct, including arrests.
We had a transaction a few months back where this particular judge was overseeing a probate case. Back in May, a house was facing foreclosure. When the seller first contacted us, we had ample time—about two months—before the foreclosure auction. I initially thought that everything looked straightforward and that we would be able to close the deal within a couple of weeks. In hindsight, I realize I should have anticipated potential complications.
She mentioned that she received her probate letters, and we said, “Great! Please send us a copy.” We instructed her to forward them to the closing attorney. We made her an offer on the house, which she accepted, and we went through the loan and contract process. Everything was sent off to the closing attorney and title company to get things moving. Then, I received a call asking, “Hey, have you seen these probate letters?” I replied, “Not yet. She just sent them to me, and I haven’t had a chance to review them.” When I looked at them, I discovered that the judge had not granted her the power to sell the property. This was surprising because the main reason she petitioned the court was to gain the authority to sell her mother’s property. She had even gotten her sisters to sign off on the petition. However, the judge granted her a range of powers but specifically withheld the power to sell the property.
It raised a lot of questions—every probate attorney I consulted about this situation was baffled. They all wondered why the judge would grant the letters but not the ability to sell the property, especially considering that the petition clearly stated her intention to sell. It seemed likely that this was an oversight or incompetence on the part of the judge.
As a result, we had to file a new petition with the court to seek permission to sell the real property. We’ve had to do this in the past, so it was not a major issue. In fact, my real estate attorney drafted the petition for the leave to sell. He had done this many times before.
He drafted a document and said, “Hey, just sign this, take it to the court, and present it to the clerk. She’ll record it, and then within a week or two, the judge will sign the leave to sell and grant the power to sell the property.” She followed his instructions, but the document sat on the judge’s desk for a long time. We constantly called the clerk, and I felt bad for her; we were calling all the time. Our team was in regular contact with the office, asking, “Did she sign it yet? Did she sign it yet?” We continued this until the day before the foreclosure auction, and she still hadn’t signed it. The judge had promised multiple times that she would sign it. There was no reason for her to withhold her signature; she simply needed to sign the document and return it to the clerk for recording. We needed that document to close the sale and finalize the deal.
Finally, on Monday afternoon, the day before the foreclosure auction scheduled for Tuesday at 9:00 AM, it was 2:00 PM, and we still hadn’t received the signed document. The homeowner was $17,000 in arrears on the mortgage, and the property was set to go to auction the very next day. I decided we had to take action to stop the auction. The week before, we had already spoken to the bank and informed them that we were waiting on this crucial document.
We are about to close any moment now, as soon as we receive that document. They confirmed it wouldn’t be a problem and asked us to send a copy of our contract along with proof of funds for the purchase. We complied and sent both documents right away. Everything seemed to be on track. However, on Monday morning, they informed us that they had changed their mind and would not be canceling the auction. Just the Friday before, they had assured us that they would, and we had already sent them the required documents. This left me in a tough position. I was prepared to wire $17,000—my own money—risking it on a property I didn’t even own yet. The only way to stop the auction at that point was to wire that $17,000 and catch up on the loan.
Taking Risks
There’s a lot of risk for me to do that. I’ve been burned in the past on a deal that we hadn’t purchased yet, which was stuck in probate. I invested some money into it and ended up losing thousands of dollars.
Anyway, I was about to click ‘send’ on the wire when we received a call that the document from the probate court had been signed; the seller had just signed it. This all happened around 2:00 PM. We called and confirmed that we had the deal. The seller had gone to the office that day to pre-sign everything, and I was out of town in Dallas, Texas.
All the documents were signed; we were just waiting on a letter from the probate court to close the deal. Once we received the document, we closed the deal, and by 4:00 PM, the bank had received the wire for the full payoff on the loan—within just two hours!
These deals take a long time, but I’ve learned that this isn’t just about real estate; it’s about families and people. This business is fundamentally a people business. We deal with individuals who have experienced the death of a loved one. Dealing with the loss of someone dear is incredibly tough. I know this firsthand; I lost my son a few months ago to brain cancer. I understand what it feels like. Shortly after my son passed, my grandfather also died.
Dealing With Family Drama
When dealing with a family that has inherited belongings, you often face challenges.
Some family members may only care about the money or their own interests. For example, one person might say, “Mom promised me the purple dinosaur statue,” while another, like Steve, insists he wants it too. This can lead to arguments among siblings over possessions that hold sentimental value.
It’s unfortunate to see how money can bring out the worst in people.
I’ve witnessed families fight over these items, spending tens of thousands of dollars in attorney fees just to resolve disputes over something trivial. It becomes less about the item itself and more about winning and protecting their egos. In such cases, the only true beneficiaries are the attorneys who collect those legal fees while representing each party during the court battles. I’ve been involved in these situations for years, and I can say it’s simply not worth it. It’s essential to find a compromise, regardless of personal feelings.
There is often a lot of old trauma and pain connected to some of these situations. The houses being sold may evoke either positive or negative memories. I’ve observed people who want to sell their homes because they associate them with painful experiences from their childhood, leading them to want to distance themselves from those memories. On the other hand, I’ve also seen families with deep emotional ties to their properties, filled with happy memories. They grew up in their parents’ house, and their siblings did too, creating a rich history in the neighborhood associated with good times and cherished moments.
Learning To Listen
This is truly a people-centric business.
It revolves around individuals and their stories. I emphasize to everyone I hire and my entire team the importance of stopping to listen—really listening to the stories people share about their homes. We understand that there’s much more to real estate than just transactions; it’s about the emotions and experiences tied to these houses. I’ve trained my team to excel in active listening and to genuinely care about our clients’ situations. We aim to dig deep and address the real issues that may arise.
These processes take time because this is a people-oriented business. They are never easy; they are always challenging. However, we have sufficient experience to navigate the hurdles and successfully bring these deals to completion. I have learned what it takes to be successful in this business, especially from an investor’s perspective when it comes to buying houses.
If you are an investor who only cares about acquiring properties and making a profit, I must inform you that you may be in for a rude awakening. That’s why it’s crucial to collaborate with a company that truly listens to you and assists you in getting your deal across the finish line. They understand the complexities involved in probate and inherited deals.
I’ve learned a lot in this business, and I invite you to check out some of my probate story videos. In these videos, I share various experiences we’ve had over the years, discussing some of the deals we’ve completed and the hurdles we overcame to successfully close these sales.
If you have inherited property and are interested in selling, we would love to make you an offer. We buy properties for cash all over the U.S. Additionally, I have an excellent network of real estate agents across the country who are specialists in probate and inheritance. So, if you have inherited property and want to sell it, we would be happy to provide you with a quick cash offer.