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TRANSCRIPT
Qualified Leads – Equity Properties – Motivated Sellers
Infinite Opportunities
Your Formula for Real Estate Success
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TABLE OF CONTENTS
INTRODUCTION ………………………………………………………………….. 2
OVERVIEW …………………………………………………………………...…… 4
A LOOK INSIDE TODAY’S REAL ESTATE MARKET ……………………...… 7
Realtor Productivity
Top 5 Reasons Realtors Aren’t Finding Business
Shrinking Inventories
THE UNLIMITED OPPORTUNITY ………………………………………….…..10
Age and Wealth Distribution in America
The Probate Market
Living Trusts
Leads
Equity
Motivated Sellers
An Infinite Market
ABCs OF PROBATE REAL ESTATE …………………………………………. 25
Documents
Selling the Property
COMPETITIVE ADVANTAGE ………………………………………………..… 30
Certification
Sources of Probate Data
Marketing
Support
RECAP ……………………………………………………………………….…… 37
ABOUT THE MTI PROBATE REALTOR CERTIFICATION ………….…….. 38
CONCLUSION ………………………………………………………………..….. 42 ABOUT THE AUTHOR ………………………………………………..………… 43
2
INTRODUCTION
The Reality of the Real Estate Market Today
If you are like most realtors today, business is hard to come by. The market
has been impacted by significant changes over the past several years. The
conditions today are pretty bleak for the average realtor and the outlook for
improvement is dim. Several factors add up to a radical market change and
the lack of current opportunity for sales. Opportunities once considered
plentiful are now few and far between. Strategies once considered effective
are no longer working. Leads are hard to come by. Motivated sellers are hard
to find.
If I told you I could show you how to increase your qualified leads, close deals
fast and put a sizable commission in your pocket, would you be interested?
The Opportunity
The good news is that opportunities are still plentiful, if you know where to
look for them and if you have the information, understanding and resources
you need to capitalize on them. Niche markets such as tax liens, tax deeds
and, especially, probate represent some of the most profitable niche markets
in history.
Before I discovered real estate investing, I was working as a teacher. I bought
my first probate home with a $20,000.00 investment and realized a net profit
of over $130,000.00 profit. That amount represented more than 6 times my
teacher’s salary. After that, I didn’t look back. I learned all I could about
probate real estate and mined that market for all it was worth. Working the
U.S court system, I quickly learned how to identify great opportunities that
included equity and motivated sellers. In a short amount of time, I went from a
teacher living on a modest salary to a millionaire real estate investor. I
accomplished this by the time I reached my early 30’s. I did it by investing in
probate real estate. A big reason I was able to succeed is because the
probate real estate market doesn’t suffer during economic downturns that
depress the traditional real estate market. And, it was amazing to see the lack
of competition. It seemed like no one else realized what a great opportunity
exists in probate real estate.
I’ve been fortunate to have amassed a fortune through probate real estate.
And now, I’ve returned to my roots as a teacher. It’s my turn to give back. I
always have been passionate about teaching and helping others. This book is
one way that I can combine the knowledge and experience I have developed
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through years of successful real estate investing and my interest in sharing
with other investors and agents.
The average real estate professionals’ reactions to probate listings?
Avoidance; they turn their heads and walk away. If you have similar aversion
to probate real estate, you owe it to yourself to read this book to understand
the opportunity you are ignoring. I’ll explain why probate represents a mother
lode of a real estate opportunity that is going largely un-mined right now, and
why it will soon become the largest transfer of wealth in this country’s history.
Better yet, I’ll show you how to navigate the probate court system with ease.
If these words—qualified leads, listings, equity and motivated sellers—have a
nice ring to them, read on. When you finish the book, I’m sure you will agree
with me when I say that probate real estate is an opportunity you can’t afford
to miss.
The Power of Probate Real Estate
An infinite Supply of:
Qualified Leads
Listings
Equity
Motivated Sellers
Now it is your turn to tap into one of the most powerful markets that will never
be affected by any market conditions. It is truly an infinite market!
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OVERVIEW
Here is what I will show you in this eBook, step-by-step.
A Look Inside Today’s Real Estate Market
The Top 5 Reasons Why Realtors are Not Doing Business Today
In this section, I will disclose the results of my research that reveal why 90%
of professional realtors today are not doing any business. They are stuck in a
market that is controlled by economic conditions that are beyond their control.
I will tell you in this section the results of my extensive nationwide research
that led to the discovery of the top 5 reasons why realtors are not doing
business today.
The Unlimited Opportunity
This section is a must read. You will learn about an unprecedented real estate
sales opportunity and how to capitalize on it. I will show you where the money
and opportunities in real estate exist right now and forever. I will show you
how to find a never-ending supply of qualified leads in an equity real estate
market full of motivated sellers. You will learn why the probate real estate
market is so sustainable, and how it represents a lifetime of opportunity that is
unaffected by the whims of real estate cycles and economic instability.
ABCs of Probate Real Estate
In the ABCs of Probate Real Estate section, I’ll show you the straightforward
and easy “How To’s” that will enable you to cash in on this opportunity and
build your fortune, just like I did.
Competitive Advantage
This section describes how you can develop your Unique Selling Proposition.
I’ll describe the ways that you can gain a competitive advantage and excel in
this amazing market opportunity by developing the expert knowledge that will
make you the expert everyone is looking for and give you the tools that will
enable you to find multiple leads and attract sellers directly to you.
5
Recap
A Review of System to Overcome The Top 5 Reasons Why Realtors Are Not
Doing Business Today
In the Recap, I compare how my system stacks up to the traditional real
estate market and how it eliminates to challenges and obstacle to realtors
trying to develop their fortunes. As you will see, after reading this book:
My system will help you find an endless number of qualified leads
that will lead you to listings, which will in turn, lead you to sales and
handsome commissions.
Through my system, motivated buyers will find you and you will no
longer have to chase opportunities.
My system will differentiate you from the competition by giving you
a unique selling proposition.
My system will generate a continuous flow of opportunities that will
lead to success.
My system is not subject to the volatile swings of the real estate
market.
About The MTI Probate Realtor Certification
This section provides an overview of the Certified Probate Real Estate
Specialist Program offered at MTI Education, the nation’s leading authority in
probate real estate. You’ll find here an overview of a complete and flexible
approach to certification, led by probate experts and experienced educators,
who provide education and training, tools, support and much more.
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I’ve been fortunate enough to learn, develop specialized skills, work hard and
profit. I’ve built my fortune with a system that works and keeps working. Now,
it is my turn to share. This book gives you the essentials to succeed in today’s
challenging real estate market.
So I invite you to read the book, understand the challenges and solutions
facing real estate professionals and understand the golden opportunity
that awaits you.
While you read this book, I encourage you to take notes and jot down any
questions that arise so that I can personally address them and help to
position you in the best real estate sales opportunity in this country’s
history. You can contact me at anytime by simply going to
www.MTIeducation.com; you’ll get a prompt response to your query.
It won’t take you long to read this book. I’m convinced that once you
complete it, you will be eager to take the action needed to capitalize on
this monumental opportunity.
I hope you enjoy the book as much as I have enjoyed sharing a winning
system that leads to acquiring wealth through real estate in even the
toughest markets.
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A LOOK INSIDE TODAY’S REAL ESTATE MARKET
As an educator in the field of real estate, I am always interested in what is
going on in the market. Recently, I was shocked by the findings of my
investigation into realtor productivity. These findings indicated to me that the
overwhelming majority of realtors are facing major challenges and struggling
to earn a good living in today’s real estate market.
Realtor Productivity
A close look at the actual real estate sales numbers reveals some surprising
facts. As the figure below illustrates, 9% of realtors write 10% of the total real
estate sales. That amounts to an average of three to four home sales
annually. And 1% of realtors write 90% of sales. Wow! I had no idea. So that
means that 90% of realtors in this country are not doing any business!
Realtor Sales
Top 5 Reasons Realtors aren’t Doing Business
The realization of the fact that 90% of realtors aren’t writing any sales led me
to dig more deeply into this phenomenon. As I travelled through the country, I
began probing realtors to determine why they were experiencing such
difficulty. The results of my survey are listed below. They represent the top 5
reasons why realtors in America are not doing business today.
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Top 5 Reasons Realtors Aren’t Doing Business
1.Difficult to locate a listing.
2.Difficult to be located by a seller.
3.No Unique Selling Proposition to differentiate yourself from the crowd.
4.Need continuous flow of listings to succeed.
5.Real Estate Market is Economically Unstable.
Clearly, these issues reflect a big problem. No leads, no listings and no
differentiation? That doesn’t spell success.
Shrinking Inventories
Another challenge realtors face today is low housing inventory. Look at the
figure below to see what is going on with homes available for sales.
Inventories have shrunk to numbers not witnessed since the early 2000s.
Shrinking inventories really make it tough on realtors.
Housing Inventory Trends
Everyone knows that lower inventories means lower listings. And listings are
the goal of any realtor. If you control the listings, you control the money.
That’s every realtor’s dream. But in order to control the listings, one must
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have leads. But not just any lead, qualified leads that connect you to
motivated sellers.
As I contemplated the above responses from all of the realtors I surveyed,
and studied the declining market inventory situation, I asked myself if the
system I use in real estate sales addresses the issues that are challenging
realtors in today’s market. My analysis to this question and of my system led
to one conclusion, a resounding YES! The system I developed over many
years of highly successful real estate sales identifies qualified leads, makes it
easy for sellers to find me, presents a unique selling proposition and
generates a continuous flow of listings that are not dependent upon the
stability of the real estate market.
So that’s what has motivated me to share this fabulous opportunity with you.
You don’t have to struggle in a traditional real estate market that is defined by
a lack of opportunity. When you finish this book, you will understand that
opportunity is knocking, and you will understand how to position yourself in
this niche market and capitalize on this tremendous opportunity.
Take Home Messages
The Real Estate Market has Changed Dramatically
90% Of The Realtors in the Market Today have NO Sales
Inventories are Shrinking
Realtors are Challenged to Find New Opportunities
Yesterday’s Strategies Don’t Work Today
Previously Un-Mined Opportunities Exist for the Informed Realtor
In the next section of the book, I’ll describe the unlimited opportunities that
await you in the probate real estate game.
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THE UNLIMITED OPPORTUNITY
To help you understand the truly unlimited opportunity represented by the
probate real estate market, I’ve outlined in this section the primary reasons
that this niche is so phenomenal and will continue to grow and provide
continual opportunities to professional realtors. You will see for yourself
where the money is, just how huge this market is and why it represents a
treasure chest of leads, listings, equity and motivated sellers.
Age and Wealth Distribution in America
We’ve all heard about the aging of America. Today, the fastest growing
segment of the population is the over-85 group. These folks own homes that
will be left to their heirs any day now.
By the year 2020, America’s senior population will grow to about 115 million.
As I’ll discuss later, the majority of estates held by these 115 million seniors
will be settled in probate court.
Aging of America
Someone turns 50 years of age every six seconds
The over-85 age group is the fasting-growing segment of the
population
By 2020, the senior population will number approximately 115
million
Sources: The Center for Mature Consumer Studies and The Roper
Organization for Modern Maturity Magazine
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Did you know that the senior population in America controls more than 75% of
this country’s wealth? I guarantee you that their net worth isn’t cash sitting in
bank vaults or under mattresses; the lion’s share is held in assets. And the
biggest investments, the most valuable assets in American’s portfolios are
real estate.
Distribution of Wealth in America
“The 55-plus age group controls more than three-fourths of this
country's wealth and the 65-plus group has twice as much per
capita income as the average baby boomer.”
The current senior population possesses over $900 billion in
spending money
Nearly a quarter of householders aged 65 to 69 have a net worth of
$250,000 or more.
Sources: The Center for Mature Consumer Studies and The Roper
Organization for Modern Maturity Magazine
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According to the U.S. Bureau of the Census statistics that appear below,
today’s population of individuals 60 years and older totals about 58 million.
That number will grow to 78 million by the year 2020. This is yet another way
of illustrating the growth in age and wealth in this country.
Take Home Messages
Age and Wealth in America go Hand in Hand
Seniors Control 75% of the Wealth in America
The Opportunity for Realtors is Huge and is Growing
Exponentially
In the next section of the book, I’ll talk about the specifics of the probate
market’s size; how phenomenally huge it is today and projections for
incredible growth.
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The Probate Market
The first U.S. Probate Court was established in 1784 in Massachusetts as a
means of resolving all claims against a deceased person’s estate before then
distributing the deceased person's property to his or her heirs.
Since that time, inheritances that pass through U.S. Probate Courts have
grown to $7 trillion. That’s today’s, 2014 number. As I pointed out above, the
aged population is growing, and so are the amounts of assets in probate. In
fact, according to Estate Settlement.com, the dollar figure of probate assets is
expect to total $15 trillion by 2017; that’s more than double the 2014 value in
just three years from the time that I am writing this book. Now, think about
how people accumulate wealth in this country. They do it through acquiring
real property, real estate. Real estate represents Americans’ number one
most valuable asset.
Facts about Probate
“…Approximately $15 trillion in inheritances will pass through Probate
and Estate Settlement by 2017…”
Source: Estate Settlement .com
Now, to put this $15 trillion in perspective, understand this: 80% of probate
filings include real estate assets. Are you starting to see the picture and
understand the tremendous opportunity in probate real estate?
These data points will shine some additional light on the picture, 70% of
probate real estate is FREE and CLEAR; paid for, no mortgage. Just imagine,
$15 trillion in assets, 80% of probate filings include real estate and 70% of
that real property is free and clear! That’s a ton of equity and it’s all going
through Probate Court.
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Facts about Probate
“ . . . 80 percent of Probate filings include real estate.
“. . . 70 percent of probate real estate is FREE AND CLEAR and 18
percent is commercial real estate...”
Sources: ProbateData .com
Living Trusts
Now, you might start thinking about living trusts, which are vehicles to help
people avoid going through probate. By forming a living trust, which is a legal
document, the estate is settled at an attorney’s office instead of probate court.
But the fact of the matter is that only 5% of estates are held in living trusts
and many of those that are in a living trust are not managed properly.
Another common mistake a lot of people make is that they refinance a
property and, in doing so, the property is officially taken out of the trust. Then,
they forget to place the property back in the trust by filing the necessary paper
work. Happens all the time. As a result, the property settlement comes under
the jurisdiction of the probate court. Like I said before, only 5% of the
population has a living trust. That means that 95% of the population will have
to settle their estate by going through the probate court. The truth is, most
people just don’t prepare.
% of Living Trust and Probate Estate Settlements
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Just to underscore the point, you’d be surprised by some of the well-known
names whose assets were not protected by a trust and had to go through the
probate process. As you can see from the list below, these are wealthy
people. You would expect that they would have received legal and investment
advice, wouldn’t you? Well, for whatever reason, they all had assets that had
to go to probate before the estate could be settled. Recognize anyone?
Singer Whitney Houston
5% Living Trust-----------
95% Estates
in Probate
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Steve Jobs, founder and former CEO of Apple
Disneyland’s Walt Disney
Actor Phillip Seymour Hoffman
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Sony Bono of Sonny and Cher fame.
Famous Banker J.P. Morgan
The point is that even the wealthiest and most brilliant people simply don’t
prepare. When people die without having all of their assets protected by a
living trust, their assets wind up in probate court.
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Take Home Messages
Facts about Probate
“…Approximately $15 trillion in inheritances will pass through
Probate and Estate Settlement by 2017…”
“ . . . 80 percent of Probate filings include real estate.
“. . . 70 percent of probate real estate is FREE AND CLEAR and 18
percent is commercial real estate...”
Next, let’s take a look at the sources of unlimited leads.
Leads
It all starts with the courts. There are three types of estate court filings, all of
which can be a good source of real estate leads because they are all public
records. If you know where to go to find these records, and how to follow up
on the wealth of leads they provide, you will have an infinite supply of
qualified leads at your disposal.
There are three types of court filings: 1) probate; 2) guardianships; and 3)
living trusts. I’ve provided an explanation of each below. Each filing
represents an excellent source for real estate leads because, as I discuss in
more detail later in the “ABCs of Probate Real Estate” section, each will put
you in direct contact with real property characterized by equity and motivated
sellers.
1.Probate
Probate estate settlements are filed in probate court upon an individual’s
death. If the deceased left a will, the settlement still goes to probate. If they
did not leave a will, it goes to probate. Keeping in mind that 95% of all
estates are settled in probate and 80% of those estates in include real
estate, you can see just how enormous the opportunity is. Because probate
filings are public records, anyone has access to them.
2. Guardianship
There are two types of guardianships: minor and adult guardianships. Adult
guardianships, called conservatorships in some states, are in place because
the adults in question no longer have the capacity to care for themselves or
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for their assets. Typically, these adults are senior citizens who suffer from
dementia, Parkinson’s disease or some other debilitating chronic condition.
These individuals are probably receiving 24-hour in-home care or are living
in a nursing home. The costs for such care can be very expensive, easily
totaling $5—$6K per month or more. The heirs need to assure that these
bills are paid if they want their family member to receive continued care. So
what do they do? They look at the estate’s most valuable asset, the home,
and they sell it.
So adult conservatorships filings are great leads. Selling the house solves a
financial situation and the senior’s need for ongoing care.
3. Living Trusts
Living trusts can be a good source of leads, so it’s a good idea for anyone
seeking opportunities from estate settlements to develop a network of
attorneys.
Take Home Messages
Public records that will put you in direct contact with leads to equity
property and motivated sellers:
Probate
Adult Guardianships (Conservatorships)
Living Trusts
In the subsequent sections of the book, I’ll talk about the real estate equity
involved in these transactions, the motivated buyers and how to cash in on
this surging niche real estate opportunity specifics of the probate market’s
size; how phenomenally huge it is today and the projections for incredible
continued growth.
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Equity
The generation responsible for the rising tide of estate settlements that is
kicking in now and will grow to a tidal wave in the near future is the Baby
Boomer generation. If you remember only one thing about the Baby Boomers,
remember this: Baby Boomers are the Wealthiest Living Generation.
Let’s take a closer look at why. The post-WW II baby boom from 1946—1964
witnessed the birth of 78.2 million people. The earliest Baby Boomers, those
born in 1946, turn 68 in 2014. As a generation, Baby Boomers are investors.
Raised by parents who experienced the Great Depression and witnessed the
single largest episode of bank failures in history, Boomers were taught to
diversify their investments and, most importantly, to buy a house. And they
were taught that a house is the safest place to invest one’s money. Real
estate became the path to wealth and security for Boomers. They’d buy a
house, pay for it and buy another house. As their wealth increased, they’d
invest in more property. But because of their distrust of banks and their
penchant for real property investments, Boomers don’t have a lot of cash.
They are house rich and cash poor.
That’s why so many Boomer estates include homes, rental property,
investment property and commercial real estate. As I pointed out earlier,
these seniors control 75% of the wealth in this country, and their portfolios are
rich in real estate assets. Let me remind you of another point I made earlier;
70% of real estate in probate is free and clear.
This is where the real estate equity is. Knowing the ins and outs of probate
real estate deals will lead you to the equity.
Take Home Messages
Baby Boomers are the Wealthiest Living Generation
Estate Settlements Today and into the Future are Estates of 78.2
million Baby Boomers
Boomers Portfolios are Rich in Equity Real Estate
Okay, so now you know about the huge source of equity rich real estate in
this country. Next, I’ll talk about why their heirs are highly motivated to sell.
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Motivated Sellers
Baby Boomers’ children, Generation X, or the Gen Xers, those born from the
1960s—80s, represent the generation hit harder by the recent recession than
anyone. They were the ones who went through loan modifications, short
sales, foreclosures and bankruptcies. The average Gen-Xer lost half of their
accumulated wealth during the period from 2007 to 2010 according to a Pew
report on the economy. The economic recession hit when Gen Xers were in
their prime earning years, delivering a big blow to their ability to dig out of a
financial hole. A full two thirds of this entire generation are worse off
financially than their parents. Here’s the one thing to remember about the
Baby Boomers’ heirs: Gen Xers are the Poorest Living Generation.
Now, members of the poorest living generation, faced with settling deceased
parents’ estates, need to assume a ton of additional responsibilities before
they can receive their inheritance. The first reality they will deal with is the fact
that, until the estate is settled, they are responsible for ensuring that some big
bills get paid. If a mortgage exists on any estate property, any association
fees, insurance and property tax all must be accounted for. Then, there are
medical bills, hospital bills and funeral bills that will have to be settled.
Probate taxes, which can be a big percentage of the estate settlement, any
state and federal taxes, attorney fees and estate settlement fees all must be
taken into account as part of the estate settlement. All bills are paid out of the
estate, but the person responsible for the estate settlement in on the hook to
see that it all gets handled properly and gets resolved. At times, the estate’s
representative will pay the money upfront, until the real estate is sold, at
which time they will receive reimbursement for those costs. In either case,
outstanding financial issues must be resolved upon the estate settlement
before inheritance distributions. And keep in mind, the Boomer estates are
house rich, but cash poor.
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Person in Charge of Estate Responsible for Settling Outstanding:
Mortgage
Insurance
Association fees
Medical, hospital and funeral bills
Property taxes
Probate taxes
State and federal taxes
Attorney fees, estate settlement fees
How do you think these people feel when this burden is suddenly dropped
into their laps? How would you feel if, in addition to managing your own life, a
job, a family, you suddenly have to deal with all these extra responsibilities?
In my experience, most people feel overwhelmed, frustrated and lost. They
just want to get it over and move on.
Keep in mind, until the financial obligations of the estate are met, the heirs
won’t receive their inheritance. So what do these people do to settle the
financial requirements? They look at the estate’s most valuable asset, real
estate, and they sell it.
The added burden, financial responsibilities and emotional stress of probate
procedures means you have motivated sellers. When you have the
knowledge to navigate the probate system and you know how to interact with
the people involved and the courts, you’ll be in a position to facilitate the real
estate transaction before it is even listed.
Now, once the estate is settled and the heirs receive their inheritance, what
do you think they do? Remember, we’re talking about Gen Xers here, the
poorest living generation. What they do is buy a house. Realtors who have
already helped their client out of their personally overwhelming probate
process are now in a position to represent that same client, or clients, in the
case of multiple heirs, with the purchase of a house. That’s another reason
why probate deals can be so powerful; one lead can lead to multiple
transactions.
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So, as you can see, this tremendous niche market provides an endless
source of real estate equity, motivated sellers and motivated buyers. As I
discussed in the previous section, the wealthiest living generation holds vast
real estate assets in their portfolios. We are witnessing today, the beginnings
of what will soon become the largest transfer of wealth in the history of this
country. The recipients of this wealth will be forced to liquidate real estate
assets in order to settle the estate debts. When the estate is settled and they
receive their inheritance, they will reinvest in real estate. Each transaction
puts money in your pocket.
Take Home Messages
Gen Xers are the Poorest Living Generation
Probate is Financially and Emotionally Stressful
Probate Real Estate = Motivated Sellers
One Probate Lead Can Produce Multiple Transactions
Next, let’s take a look at why I call probate real estate an infinite market.
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An Infinite Market
Remember the graph illustrating the aging population in America I showed
you earlier? It’s worth taking a second look. The wealthiest group in America,
people 60 years and older, totals about 58 million today and that number will
grow to 78 million by the year 2020.
As the saying goes, the two things certain in life are death and taxes. And,
according to EstateSettlement.com, “Over 2 million people die each year in
the United States.”
None of us are going to escape death. As each generation ages, their
property will eventually wind up going through probate. That’s why I call this
an infinite market. It’s part of the normal cycle; it’s tied to the human cycle, not
to real estate cycles or economic cycles or stock market cycles. It’s loaded
with a continuous flow of leads and listings, real estate equity and motivated
sellers that sustains itself even when the traditional real estate market is
unstable.
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Take Home Messages
“…over 2 million people die each year in the United States…”
-- Estate Settlement .com
Probate is an Infinite Real Estate Market
Is the light going on for you? Do you see the infinite opportunities in the
probate real estate? By now, you probably want to know some more about
how it’s done, so let’s move on to the details.
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ABCs OF PROBATE REAL ESTATE
In probate real estate sales, everything starts with the court. Settling estates
requires various court documents and legal decisions leading up to real
estate liquidations. The beauty of this process to the realtor is that court
records are public records. They are available at the county courthouse. This
is the first step in the process; this is where your prospecting starts.
Documents
1. Petition for Probate. Think of this as the application. When a Petition
for Probate is filed, this initial document sets the probate process in
motion. There are two ways a Petition for Probate can be filed: directly
to the court by the person petitioning to be the personal representative
for the estate, or through an attorney filing on behalf of the estate. Both
instances provide an excellent source of leads.
a. Regardless of how the Petition for Probate is filed, by accessing
that document you will have the contact information you need to
directly get in touch with the personal representative or the attorney
and begin prospecting. This public record will include important
prospecting information such as:
Names
Contact information
Property value
Depending on the county, the property address
Any encumbrances on the property
A list of beneficiaries
Right away, you can identify the potential in the deal and know with whom
to follow up.
b. Dealing directly with personal representatives is usually a
somewhat easier route, but contacting the attorney can be helpful.
Over time, you can build relationships with attorneys, and add them
to your network as great referral sources for future business.
27
2. Orders. Think of this as the acceptance of the application with specific
terms. After 30-40 days, an Orders document authorizes the person in
charge of the estate to assume legal responsibility of managing the
estate. Without orders, the person in charge cannot legally take any
actions related to the estate. At this point, the person in charge of the
estate may be able to initiate the sale of a house, but they cannot
complete the transaction until they receive the Letters of
Administration/Testamentary.
3. Letters of Administration. Thirty-to-forty days after Orders are issued,
the person in chare of the estate receives Letters of Administration,
also known as Letters Testamentary. This document is very important,
because without it, one cannot close a transaction. This document
allows the personal representative to change title of the deceased
assets.
You’ll be amazed at the quantity of qualified leads you will come across.
Consider this example. The daughter of a deceased person with real estate in
California files a Petition for Probate. You access the record, find out that she
lives in Chicago and that there are two more heirs in line for an inheritance.
You’ve got an out-of-state person responsible for settling the estate and
property that is going to be divided among three heirs. What does that tell you
right away? Managing a California estate from Chicago is not easy; the
person probably doesn’t have any local area realtor contacts and probably
has a limited understanding of the local market. And, because of the number
of heirs involved, it is very likely that the house will be liquidated. You
proactively make the contact, ask for the listing and provide a valuable
solution to a complicated situation. These are the kinds of leads I am talking
about. Qualified leads available through public records.
Probate Documents Petition for Probate
30 - 40 days
Orders
30 – 40 days
Letters of Administration (Testamentary)
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Take Home Messages
Petitions for Probate Produce Endless Qualified Leads
Orders Allow Sales to Proceed
Letters of Administration/Letters Testamentary Allow Sales to
Close
Next, let’s take a look at how the deal is done.
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Selling the Property
The person appointed by the court to handle the administration of the estate,
typically an heir or the individual designated in a Will, is designated a title and
legal powers. This individual is the Personal Representative (PR), a generic
term used by attorneys and judges. Depending on the presence of a Will, the
PR will receive the title “Executor,” meaning a Will is on record or
“Administrator,” meaning no Will is on record. Doesn’t matter; both have the
same legal responsibilities.
When the court appoints the PR, it grants that individual either full or limited
powers. This can also be called independent administration (full authority)
and dependent administration (limited authority). A PR with full authority can
make decisions such as selling estate real estate without prior court approval.
In this case, the PR goes through typical real estate sales procedures. This
type of probate sale is like a Regular Sale. A large majority of probate real
estate transactions are “Regular Sales.”
In many states, a real estate sale involving a PR with limited authority goes
through a process called court confirmation. Court confirmations vary from
state-to-state; some use a formal hearing process, while others simply require
the presiding judge’s signature.
In either case, the PR can sell the estate’s real estate property. In the case of
court confirmations, it may take a little bit longer, but upon confirmation the
close of the sale will continue. Once the sale is closed, the realtor receives
their commission check, just like any other transaction. I have found the
process to be very straightforward, so I’ve never understood why some
people automatically shy away when they know the courts are involved. At
the end of the day, it’s money in the bank. And I promise you; it’s a much,
much shorter process than a short sale.
Now, when selling the property, the PR has two options: 1) sell real property
directly to a buyer; or 2) sell real property by listing it with a REAL ESTATE
PROFESSIONAL.
You’ll also be happy to know that REAL ESTATE PROFESSIONALS sell
more than 85% of probate properties. PRs rarely sell property directly
because of the added responsibilities, the hassles, the emotional stress and,
importantly, legal liabilities. Once misstep or miscalculation and they find
themselves in trouble with the court or they wind up getting sued by one or
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more of the heirs. They prefer to work directly with a real estate professional
who is licensed, bonded and an expert in the field of estate settlement.
One more piece of good news. Because you got in on the ground floor and
control the listing, you can control the deal before it ever hits the MLS.
Take Home Messages
More than 85% of probate properties are sold by REAL ESTATE
PROFESSIONALS
You control the Deal and the Listing
Okay, so now you know more about how the probate process works and how
real estate sales are transacted in this phenomenal niche market. The next
step is developing the competitive advantage that will give you unlimited
access to probate documents, a unique selling proposition and help more
sellers find you so that you can build your fortune in probate real estate.
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THE COMPETITIVE ADVANTAGE
By now you realize what a fantastic opportunity the probate real estate market
presents. Others will soon recognize this and the market may become
crowded. But there are ways that will distance you from the competition so far
that they will never catch up.
Certification
The more knowledge you have about probate real estate sales, the better
equipped you are to capitalize on this never-ending opportunity to generate
wealth and the more attractive and trusted you become to people selling
probate property. The best way to achieve this status is through education.
Knowledge is power, a power that translates into a competitive advantage.
And the best way to acquire that power is through authoritative education and
certification as a Certified Probate Real Estate Specialist.
Let me tell you about the leading probate real estate certification program in
the country. MTI Education is the nation’s leading authority in probate real
estate opportunities. Number one. The comprehensive Certified Probate Real
Estate Specialist (CPRES) Program is second to none. MTI Education
provides more than expert knowledge; they provide the tools and the support
that help you succeed.
MTI Education was founded by educators and is supported by expert
knowledge and experience in probate real estate. Their CPRES Program
covers all the fine details, from prospecting to closing, from dealing with
courts and attorneys to interacting with estate PRs and heirs, from finding the
best deals to turning the best profits.
As a Certified Probate Real Estate Specialist, you are an expert in the field.
And there’s your Unique Selling Proposition that was missing before. Sellers
will recognize you for the expert you are and place their faith and trust in you
before they will with an everyday realtor who is not certified.
You can learn more about the CPRES Program at the end of the book, or you
can visit www.MTIEducation.com.
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Take Home Messages
MTI Education is the nation’s leading authority in probate real
estate
As a Certified Probate Real Estate Specialist, You are an Expert in
the field.
And there’s your Unique Selling Proposition
Part of your unique selling advantage is education and training that makes
you an expert is the field. Motivated probate real estate sellers want to deal
with certified experts.
But your unique selling proposition doesn’t end here. Next, I’ll discuss some
tools available to you that will increase your competitive advantage.
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Sources of Probate Data
As I mentioned earlier, probate records are available at the local county
courthouse. It’s a simple matter of pulling those records and spending a great
deal of time gathering the necessary information. You have to be vigilant
about it and dedicate part of your day to the task. And let’s face it,
professional realtors are happiest when they are prospecting and creating
business, not doing research; the more deals you close, the more cash in
your pocket.
If I told you that you can have access to a database service that lets you mine
multiple probate leads from multiple counties on your computer, would you be
interested?
Well, you are in luck. A service called Probate Data Services puts multiple
probate leads into your hands with a few simple keystrokes. This service can
increase your access to leads in an extremely efficient manner, put you in
touch with many more opportunities and save you time to put together and
close more deals.
Probate Data Services is a paid subscription program, but well worth the
expense. And because of the relationship MTI Education has developed with
Probate Data Services, anyone who completes the CPRES Certification
Program training gets a special discount that saves them a bundle.
34
Take Home Messages
Probate Data Services Puts Multiple Probate Leads Into Your
Hands with a Few Simple Keystrokes.
CPRES Certified Realtors Get a Special Discount that Saves Them
a Bundle.
Easy access to multiple listings gives you more time to find deals, close deals
and make more money. You’ll stay way ahead of the competition. Another
tool I’ll describe in the next section puts even more distance between you and
would-be competitors.
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Marketing
Remember the top 5 reasons 90% of realtors aren’t doing any business? One
of these challenges, cited by many real estate professionals is, “Difficult to be
located by seller.” Well that can change easily.
Let me tell you about another tool, an online marketing tool that will ensure
that many motivated buyers find you. U.S. Probate Services is an online
marketing service for Certified Probate Real Estate Specialists. This service is
the only nationwide probate real estate services resource. U.S. Probate
Services is free to consumers searching for professionals who specialize in
estate settlements. The service ranks in the top 3 on Google, Yahoo and
Bing, so it attracts tons of sellers seeking expertly qualified services.
The only requirements real estate professionals need to be listed in the
directory are the certification in probate real estate and a modest monthly
subscription fee. And, because of a special relationship with U.S. Probate
Services, anyone completing the MTI CPRES Certification Program qualifies
for a substantial discount.
This service helps people from all over the country find the qualified help they
are seeking. Don’t forget, a lot of people settling estates are from another
state. It acts as the search engine optimization tool for agents certified in
probate estate deals with a 24/7 nationwide reach.
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Take Home Messages
U.S. Probate Services Online Marketing Services
The ONLY nation-wide Probate Services Resource Directory
Ranked within the TOP 3 on Google, Yahoo and Bing Searches
Free to Consumers Seeking Estate Settlement Realtor
Specialists
Open to C.P.R.E.S. Certified Agents
With an online, nationwide marketing tool that works 24/7, motivated
buyers find you. This is one more piece of a complete systematic
approach to the probate real estate market the give you the competitive
edge.
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Support
Whether new to the probate real estate field or an experienced pro, everyone
can profit from coaching, networking and feedback. MTI Education provides
the support you need to get started, stay at it and succeed. You won’t find
such dedicated support committed to your success anywhere else.
Coaching calls, live and recorded
Email support
An exclusive social media site
o Networking
o Discussion groups
o Feedback
When you have the competitive advantage through expert certification, to
tools for multiple leads and nationwide marketing and an ongoing support
network. Your have a unique selling proposition, list more properties and
connect with more sellers so that you can outpace the competition in the
probate real estate market.
Take Home Messages
Competitive Advantages for Probate Realtors
Certification
Access to Probate Data
24/7 Nationwide Marketing
Ongoing Support
The combination of all of these elements works for you and sets you apart
from the competition
The next section is going to bring things full circle and examine how I did on
addressing the 5 biggest reasons realtors are not doing business in today’s
market that were introduced in the first section.
38
RECAP
Didn’t I tell you I have a solution that addressed the 5 biggest reasons realtors
are not doing business in today’s market? If you are one of the 90% who are
experiencing difficulties with finding leads, getting listings, differentiating
yourself and finding a steady stream of business, I’ve just laid out for you a
system that works, and will continue working non-stop.
So let’s see how my system that focuses on the probate market today and in
the foreseeable, predictable future stacks up to the traditional real estate
market to see which strategic play wins.
Characterizations of Traditional Versus Probate Real Estate Markets
Traditional Real Estate Probate Real Estate
Difficult to locate a listing. Easy to locate a qualified lead before it is listed.
Difficult to be located by a seller.
Sellers will find you.
No Unique Selling Proposition to differentiate yourself from the crowd.
Certification establishes you as an expert in the market and separates you from the competition.
Need continuous flow of listings to succeed.
Endless flow of qualified leads and listings—an infinite market.
Real Estate Market is Economically Unstable.
Stable, perpetual market unaffected by economic or real estate downturns.
So what are you waiting for? All you need is the education, training and tools
required to get back in the game… For the best solution that provides you the
education, expertise, tools and support you need to start building your fortune
in real estate today, contact me at www.MTIEducation.com.
The next section provides an overview of the comprehensive CPRES
Certification Program at MTI Education. Take a look to see the complete
training, tools and support available to you.
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ABOUT THE MTI PROBATE REALTOR CERTIFICATION
Unlike most educational programs, at MTI Education you
receive the training and the certification and the tools and the support you
need to succeed as an expert, a Certified Probate Real Estate Specialist.
MTI Education was founded by educators with a passion for training,
expertise in estate settlement and a successful probate real estate track
record totaling millions of dollars.
The Certified Probate Real Estate Specialist Program is a comprehensive and
flexible system that provides education and training, probate data, online
marketing services and more.
Flexible
Available through live classroom training or through virtual online training.
Select the training and education vehicle that best meets your schedule, your
location and your preferred learning style.
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Comprehensive System
1. C.P.R.E.S. Certification Program (Classroom or virtual training).
See curriculum below.
2. Probate Data—Your Lead Provider
Updated and current Probate Leads database--directly from the court files
for select counties in service states.
3. US Probate Service—Your Marketing Services
The ONLY nation-wide Probate Services Resource Directory.
Ranked within the TOP 3 on Google, Yahoo and Bing search engines.
Free service for consumers who are looking for professionals
specializing in settling an estate.
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Supplemental Course Material
1. Audio Program – 2 CD set
Ongoing learning reinforcement
2. Marketing Documents CD
Plug and play customizable
comprehensive marketing
collateral—brochures, business
cards, letters and more…
3. State by State Library CD
Compilation of courthouse contact information in your area
4. C.P.R.E.S. Training Manual
Book to guide your learning of the niche market of probate real estate
5. Weekly Coaching Call (1 yr)
Ongoing coaching and feedback. Participate live or listen to recorded
session later
6. Email Support (1yr)
36-hour response rate to all your questions
7. Facebook CPRES Community
Exclusive networking and discussion groups with colleagues, trainers and
coaches
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CPRES Training Curriculum
From A—Z how to become a probate real estate master and monetize this
lucrative niche market.
Session 1 – Probate Lead Generation – You will learn:
1. How to list properties from Probate, Conservatorship, Living Trust and
Guardianship situations.
2. How to identify the RIGHT LEAD and communicate with motivated
executors and administrators.
3. Five proven steps to get an appointment with an executor or administrator.
4. What to say during an appointment, so you get the listings
5. How to identify the executors and administrators who are READY to sell
NOW!
6. The fastest strategies to quickly spot the best probate files to work with and
get RESULTS!
Session 2 – Marketing - You will learn:
1. How to create and apply marketing strategies that are most effective when
listing probate properties.
2. How to contact and communicate with attorneys and get access to their
probate property inventory.
3. How to set your prospecting time line to make sure you get results right
away.
4. How to arrange cash access for administrators and executors and get paid
for helping them.
5. How to buy personal property for pennies on the dollar.
6. And much more…
To learn more about the real estate selling certification program that will lead
you to infinite sales opportunities, go to www.MTIEducation.com.
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CONCLUSION
There it is folks. I’ve laid out the phenomenal opportunity in probate real
estate for you in a very straightforward manner. I was able to do so because it
is a straightforward process toward selling in an infinite market that you can
master through acquiring the education, tools and support you need to
become an expert in the field, help others in a difficult situation and put
money in your pocket.
If I was able to amass a fortune in this market as a kid who arrived in this
country several years ago with nothing but a dream, you can too. And now
I’ve made it easier for you. After reading this book, you undoubtedly see the
challenges investors and agents face in a traditional real estate market and
how my approach to capitalizing on probate real estate eliminates those
challenges.
So don’t wait for a market bounce back; you may be waiting a long time. Act
now and get in on the ground floor so that you are prepared for the greatest
transfer of real estate wealth in this country’s history. With endless leads,
multiple listings, equity-rich deals and motivated sellers just waiting, if you
make the move now to position yourself as a certified expert in real property
estate settlements, it will be the best career move you ever made in your life.
It’s your turn. It’s your move. Contact me today at www.MTIEducation.com.
Let’s get started.
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Mike Torres
CEO, MTI Education
ABOUT THE AUTHOR
Mike brings a passion for teaching born
from a strong desire to empower people
through education and savviness for
investing. His goal is to help agents and
investors succeed in a challenging real
estate market while they help families
dealing with the difficulties of estate
settlements.
In 1980, Mike arrived in America with one
mission, to buy his mother a house. In
addition to buying mom a home, he built a
thriving real estate business by
approaching the market in a unique way.
By specializing in probate real estate, Mike
enjoyed great personal and financial
success as an investor.
Today, MTI Education helps people from
all walks of life achieve their dreams by
teaching them the time-proven method
that’s worked for him and his family for the
last two decades. His secret: Investing in
real estate using the probate court system
in America. Now, with the MTI Education
Certified Probate Real Estate Certification
Program, it’s your turn!