PROPERTYINVESTORS! Probate Vs Repossessions…No Contest!
Why all this fuss about repossessions?
Well you would be forgiven for taking the bait of every recent press article that you read that tells you that because repossessions have skyrocketed, that this is the ONLY way to make serious money in this marketplace when buying property. However, as usual all this political scaremongery merely serves to promote crowd hypnosis, where all and sundry follow blindly because that’s what the masses are doing…Well I think it was Warren Buffet that said; “Investment success comes from a contrarian mindset, and contrarianism is to do the opposite of what others are doing, therefore to blindly follow the masses is a recipe for failure”
Probate Property Investing is definitely a contrariness approach to property investment, but the fact is NOTHING can beat the simplicity of Probate Property or the match the level of overall profit that can very often be achieved.
Firstly let me say that all property investment techniques have their place and clearly for those that have perfected the art of Repossessions, there is good money to be made. However, big profits in Repossessions, usually comes at a price one way or another… Something I don’t really have the constitution for I’m afraid.
Personally I like simplicity, so if I can achieve big profits and at the same time avoid ALL of the complexities of a deal AND where there is ZERO competition, then I am happy 🙂
Here are some of the reasons you might want to consider becoming a Probate Property contrarian;
•With Probate Property, we are dealing direct with the Executor, or Personal Representative of the Estate, person to person… AND where there is a positive motivation to sell In contrast with Repossession, it will be with the bank, who’s only motivation will be money, or worse still if we are dealing with the bank Pre-Repossession, then understandably the owners of that property could be extremely nasty to deal with
•With Probate Property, once a price is agreed with the Executor or Personal Representative, then the rest of the transaction is like any other house purchase, in other words simple…And because of this simplicity, we can move much more quickly in getting the heirs to the estate their share of the Will – A BIG plus point Again, with Repossessions, often lengthy and drawn out negotiations take place over months, rather than weeks and as an investor, if it is auctioned, then unless you are lucky, you are likely to pay more for the property, by the very nature of what auctions produce…COMPETITION!
•Many Probate homes have been cared for and looked after and merely need updating, therefore the cost and time to turn the property around for Letting or Sale is a lot quicker Repossessions on the other hand are often damaged, or trashed in the resulting emotional anger that Repossessions often bring.
•Probate Property, like any other straight forward house purchase provides clear Title Ownership
If you are dealing with a bank prior to Repossession, then Title can often be a problem
•Probate Property, produces motivated sellers and their reasons are many times not related to money Vs the coldness of banks, who of course are only interested in getting the highest price.
•Probate Property is not about racing all the other investors to the deals and trying to beat them. Probate investing is a legitimate way to buying property significantly and consistently BELOW FMV with greater numbers of opportunities AND… ZERO competition… than any other method of buying Property
Why would you choose to pursue properties people don’t want to vacate when you can focus your attention on properties that people actually want and must sell?