Your typical Probate real estate transaction generally involves the purchase of only the real property portion of the estate. However, quite often the heirs will leave a portion ... or sometimes all ... of the personal property in the house also. Jewels or junk? You decide. All of it, however, is a potential source of additional revenue.
So you've got a couple of options.
One, you can hold your own estate sale ... you see them every weekend. Most of us have either had our own estate sale ... or have been to one ... so know what the deal is. Price each item, advertise in a local paper, put up your sign and stand back! The first day is always real interesting because no matter what time you start your sale, folks will start showing up before first light!! Them E-Bay'er folks, you know!
After you've finished your sale, you should net a few thousand dollars. But you'll still have some stuff left over. We like to donate these items to different shelters we support, but you could also use organizations like the Salvation Army for stuff you feel still has some value.
Still other "jewels" get a direct ticket to the landfill.
You might consider an estate sale company as your second option. They will buy the personal property in bulk, conduct the sale themselves and deal with the leftovers. This will not normally net you as much money as running your own sale, but it's a heck of a lot easier. The estate sale folks have to make some money on their sale so they won't offer you anywhere near what you think all the stuff is worth ... but you're not doing the work either! That's the tradeoff.
It's really exciting when the personal property does include some "jewels". You can either put them aside for your own use or take them home and sell them individually.
Just yesterday I saw a gorgeous 1997 Cadillac STS with 13,000 miles being sold out of an estate and the top bid at that time was $6700. It'll probably sell for around $7000 when the dust settles which is a lot of car for that price.
Let me show you some actual results of a probate deal recently completed in the state of Nevada. The total profit on this deal was approximately $53,000.
Offer to seller - $135,000
Purchase price - $165,000
At closing Buyer received - $30,000
Minus closing costs - $2,000
Minus Repairs - $20,000
NET before selling the house - $8,000
After Rehab house sold for - $217,500
Minus original purchase price - $165,000
Minus closing costs - $5,000
Minus misc. carrying costs - $2,500
NET after selling the house - $45,000
TOTAL NET PROFIT - $53,000
You don't always get personal property included in a probate real estate deal. When you do, however, it can be very lucrative. The numbers in this deal did not include any profits from the personal property that was included in this home.
If having your own business and an additional stream of income is of interest to you ... now is the time to take some action!
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Ron Mead has been a real estate investor for the past 30 years, specializing in Probate Real Estate for the past 13 years. The #1 rated Probate Real Estate course on the Internet is Ron's "31 Days to Profits in Probate Real Estate." Follow Ron through an actual probate real estate purchase in his new "Seminar In A Box" DVD series. Learn more about this lucrative field with Ron's free report, "Probate Real Estate: The Untapped Market" at =>
http://www.BuyProbateProperty.com
