| To make money in real estate you need an | | | | then the state takes care of that too. Most states |
| advantage over your competition. So why not just | | | | have heirship succession laws in place that says which |
| eliminate them! Now I don't mean you need to go out | | | | relatives get what percentage of the estate. The other |
| and create a bunch of probate by whacking all your | | | | reason that the law requires estates to be probated is |
| competition. What I do mean is that you need to play | | | | to let any creditors who may have an interest in the |
| real estate the same way I would like for my favorite | | | | estate know that the person has passed away and |
| team to play football--move to another arena. What I | | | | the creditors will need to file in order to get paid from |
| mean is that you need to go looking in hiding places | | | | the assets of the estate. The final reason that the law |
| that nobody else is looking in to find those hidden | | | | requires the estate to be probated is that the tax man |
| treasures. That is where probate comes in. I'll never | | | | wants to be paid. It has been said that the only two |
| forget when my partner and I were filming our DVD | | | | certainties in life are death and taxes. With probate |
| for our course, The Hidden Treasures and Profits of | | | | they both apply. Not too long ago the federal |
| Probate, at the probate courthouse. Jimmy asked me | | | | government made some changes to estate taxes that |
| how much competition there was at the courthouse. | | | | remove most people from getting taxed. But the local |
| As the camera panned around the room, there was | | | | governments still want to get paid either estate taxes |
| nobody else in the whole office except the two ladies | | | | or property taxes. By forcing the real estate in to the |
| who worked there. How many people do you think | | | | probate courts, the government makes sure they get |
| were outside bidding on foreclosure properties? The | | | | their fair share. |
| answer is hundreds. | | | | Your challenge is to find some deals in probate. You |
| First, let me explain some things about probate. A | | | | can see from the facts above that there can be a lot |
| statistic that may shock you is this: 100% of Americans | | | | of motivation with people dealing with an estate in |
| will die. That's right, according to the Center for | | | | probate. By far, the easiest way to find the deals is to |
| Disease Control, about 2.5 million people will die each | | | | send some marketing to probate attorneys. There are |
| year. Now here is the thing about that statistic. 70% of | | | | better and faster ways, but my partner and I had to |
| those folks will die without a will. Even more important | | | | write a whole manual to explain those techniques. I |
| is that regardless whether you have a will or not, your | | | | simply can't fit them all here in this limited space. But if |
| estate will go through probate. The only way to avoid | | | | you know that most people will not try to probate an |
| probate is to have your estate in an entity. But ask | | | | estate themselves and will seek out the services of an |
| yourself this question. If so few people even have a | | | | attorney to help them, then obviously you can short cut |
| will, how many people do you think will put their assets | | | | the whole process by sending letters or brochures to |
| in an entity? To give you an idea about how huge that | | | | your local probate attorneys. In some states, you can |
| is, of all the cases coming in to the court system, 24% | | | | even get pre-printed labels for probate attorneys from |
| will be probate cases. In Seattle, WA in 2003, there | | | | you state bar association. That way, half your work is |
| were more than 6000 probate cases. In Ft Worth, TX | | | | already done. Now you just need to come up with a |
| in 2006 there were about 3500. Many of those cases | | | | good letter to send them. |
| had real estate involved. That is where you step in. | | | | When you write your letters, simply tell the attorneys in |
| Most people don't want to work this market because | | | | a professional way what it is you do. Make yourself |
| they think it is morbid. It is not morbid. The estates that I | | | | out to be an expert in the field. You might say |
| have worked with have been some of the most | | | | something like "I am a local real estate investor who |
| appreciative people I have ever worked with. I will | | | | specializes in solving probate related real estate |
| never forget the lady that thanked me for buying her | | | | problems." Do you see how you just became a |
| mom's house at fifty cents on the dollar. | | | | specialist there? |
| So why do all of these estates go through probate? | | | | Now you know why you really need to be working the |
| The government requires it for a few reasons. First, | | | | probate market, and you know a great shortcut to the |
| the state wants to make sure that the assets are | | | | market. All you need to do is go out and put it to work!! |
| divided according to the will. And if there wasn't a will, | | | | |