Lecture Notes: Real Estate Investing and Pre-Probate Properties
Introduction
- Speaker: Christian Cruz
- Profession: Attorney in Florida, Real Estate Broker, and Real Estate Investor
- Experience: 15 years as an attorney, 10 years in real estate investing
- Specialization: Pre-probate properties
Concepts of Probate and Pre-Probate
Probate
- Definition: Legal process to transfer property of deceased individuals to heirs
- Requirement: Property transfer requires going through probate
- Public Record: Once filed, probate becomes public, inviting potential buyers
Pre-Probate
- Definition: Engaging with properties before they enter the probate process
- Benefits:
- Less competition
- Opportunity to build rapport with heirs
- Can address issues like equity loss due to taxes, code violations, etc.
Identifying Pre-Probate Opportunities
Criteria for Identifying
- Look for properties with equity
- Find properties losing equity through foreclosure, taxes, etc.
- Identify barriers preventing heirs from acting (financial, lack of knowledge)
Finding Heirs
- Use obituaries and public records to identify possible heirs
- Death certificate can provide crucial information (informant details)
- Building connections with relatives unaware of the property
Christian’s Background and Business Approach
Early Career
- Engaged in finding heirs for foreclosure overages for the state
- Used skills in locating heirs and identifying surplus funds
Transition to Pre-Probate Investing
- Applied skills from foreclosure work to real estate investing
- Developed automated systems for identifying and contacting potential sellers
Successful Case Study
Example Deal
- Location: Fort Lauderdale
- Property worth over a million with $250,000 mortgage
- Deal involved finding a distant relative who was unaware of the property
- Structured deal led to $250,000 profit without property rehab
Strategy
- Identified property through code violations
- Contacted heirs with potential equity in property
- Structured transactions with due legal process
Addressing Pre-Probate Opportunities
Marketing Approach
- Use of Obit Messenger to track obituaries in targeted areas
- Send targeted, empathetic letters to potential sellers
- Address seller pain points in communication
Legal Processes
- Utilizing curatorship to manage estate properties
- Curatorship: Appointing someone to manage estate when heirs are absent
Handling Challenges
- Dealing with incomplete or abandoned probate processes
- Reopen probate if necessary or apply for curatorship
Scaling the Business
Niche Markets
- Focus on specific channels for marketing and acquisition
- Replicate success in various niches (e.g., divorce, evictions)
Recommendations and Tools
Tools for Pre-Probate Data
- Use public records where accessible
- Employ services like obit messenger
- Leverage technology for data scraping and automation
Final Thoughts
- Importance of building a system around niche markets
- Constantly seek ways to add value and solve seller problems
Christian Cruz provides a comprehensive overview of how to navigate pre-probate properties effectively. His insights on identifying opportunities, legal processes, and marketing strategies offer a valuable framework for real estate investors.