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It should go without saying that dealing with probated properties demands a level of sensitivity, beyond the rigors of a traditional sale. 

The executor is not merely feeling the loss of a loved one, but there are other dynamics going on. From my experience, the astute investor or agent that can help the executor navigate through these other issues will be successful. In this sense, you are not an investor or an agent - you are a problem solver and in some cases, a social worker. 

I recently designed a probate site for an agent that made it a selling point that she can secure the home of a probated property to keep out "self entitled" heirs from removing items and valuables from the probated property. She is doing well working probates because she is willing to enter into this frank, heart-to-heart conversation that doesn't couch words. The reality is, when someone passes, there will be family members that sweep in to claim belongings that they may or may not have an equitable right to. It becomes in many cases a free for all. The agent's call to action was to lock up the probated property like Fort Knox. 

In another case, an investor makes it a salient part of their probate marketing campaign to stress that they can remove belongings in a dignified manner, liquidating non-real property assets to generate cash for the estate OR donate items to charity, giving the family a sizable tax write off. 

I can go on about stories, but the quintessential point is that when working probate, you are less a real estate professional, and more social work. Oftentimes being a referee between heir in-fighting, 

When subscribing to a list of probate filings, some clients love us. Some of them hate us. It all boils down to the results. And among the successful agents and investors that are getting more inventory, there is one common denominator, I have found: They have a mindset of solving problems, and not just listing the house or buying the house. Their fundamental value proposition when working probate is to restore normalcy in a thorny process that often wedges family members against each other. As if listing the home - or buying the home - is almost an afterthought. 

It's really capsulized in the entrepreneurs creed, a plaque hanging on my wall that says in essence, "We are only compensated to the extent that we add value to other people". 

In other words, when working probates, listing or buying the real estate is the end goal, but what precedes it is building empathy and trust and creating harmony. The rest will follow. 

My job is to craft this message that resonates with executors tasked with the honor and burden of settling their loved one's estate. If you'd like to  have a website dedicated to probate, get in touch. 

Probates are the low hanging fruit because heirs want to cash out. Get an overview of probate investing in this blog post. While every case is different and the executor has their own unique time frame in selling the probated property, the biggest obstacle that blocks the executor from selling is the personal belongings that their loved one has left behind.

It is a gut wrenching process to dispose of these personal belongings. To everyone else, it is “stuff”. To the family, it is a treasure chest of memories. What if the family just is frozen and cannot finish the job? Providing assistance in removing these items in a dignified manner may just seal the deal in a probated property.

Yesterday, I spoke with an investor that relayed a story. Without much background on the house he was about to see, the investor showed up at a potential property to meet with a real estate agent. They walked in to discover a treasure trove of furniture and other items. “This is a great REO property”, the investor said to the agent, to which the agent said, “This isn’t bank owned. It’s in probate. The relatives already came to get the things they wanted”.

The investor, who also has a property preservation business, not only offered to remove the items, but to donate the items to charity for the estate to realize a sizable tax write off. The family paid the investor $7,000 to clean house and donate the belongings to charity, and the family claimed over $11,000 in deductions. That adds new meaning to “win win”.

That’s an atypical example, but the quintessential point is that if you – the investor or agent – can oftentimes seal the deal by offering your help in disposing of these non-real property assets. We know of several subscribers to our probate data that make “house cleaning” a prominent benefit of their service by offering to rescue vintage paintings, the 59 Corvette in the garage, the coin collection, the boat on the side of the house, and other prized items that the family simply does not know what to do with. In many potential probate deals, these gems may be the only thing standing in the way between you and a discounted property.

With an aging baby boomer population, the coming years will see the largest shift of wealth transferred from one generation to the next. At probateleads.net, our mission is to pair REALTORS and investors with executors that are motivated to liquidate the real property in the estate. 

In many locales, the attorney’s contact information is contained in our list of probated properties. It raises the question of whether you as a real estate agent or investor should make contact with the attorney involved in the estate.

This provocative question was posed in an interesting forum discussion on Bigger Pockets, raising several arguments for and against reaching out to the attorney that has their footprint in the probate case. To get the global view, read the entire discussion here.

In my own personal view, I believe that if your marketing budget persists, it is overall a good practice to contact the attorney, “leading in” with the probated property in question, but then launching into how you can be of value in other probate cases that come across the attorney’s desk. Some subscribers of our data use this strategy to get future referrals from that attorney. Of course, this takes time and the attorney has to see you in action to truly cement trust, but to the extent that attorney referrals can be a source of leads, I think that it is well worth it to get the conversation rolling with legal counsel.

Of course, if you do decide to contact the attorney, it should be in addition to, and not a substitute to contacting the Personal Representative, better known as the executor, who has the most influence into how the estate is settled because the Court has assigned them with the fiduciary duty of equitably divvying up the estate.

Scratching your head as to what to say to the probate attorney? Here is a sample letter that I came across as food for thought:
http://www.probateleads.net/SampleAttorneyLetter.doc (Word file)

I will elicit the thoughts of others – including yours – and update this post once the feedback comes in, so check back soon.

Until next time, A-B-C …. Always Be Closing.

One of the most often asked line of questions we field as  a compiler of probate data is related to timing. “How long do they take to close?”… “When does the executor want to sell the property”, etc.

Before we address these questions on the merits, a little refresher background is in order. Probate is the process supervised by a surrogate court of competent jurisdiction that determines the validity of a will, itemizes assets including real property, paying taxes and debts to creditors as well as expenses associated with will administration, then finally distributing the assets left over to the heirs that are entitled to them. Depending on the complexity of the estate and the intent of the parties, this process can be short or lengthy, typically ranging from three to seven months and rarely, upwards to a year or more. > Read more about the probate process.

It’s been said that there are riches in niches. Savvy investors and agents understand the benefits of finding probate properties. Among them are the potential for deeply discounted properties, a huge inventory that only stands to balloon with an aging boomer population, the ability to get in front of motivated sellers that have a heightened urgency to sell the property attached to the estate, and less competition from other real estate professionals that seem mystified by the probate process or reluctant to engage in a heart-to-heart talk with grieving families.

Will all of these properties sell? Of course not. For those that will sell, when will they sell? We don’t have a crystal ball – every case is different. But here are some scenarios that span every time frame.

Now vs. Future Business

There is some low-hanging fruit among families that simply want to cash out and move on to create better memories. When you contact these executors that are charged with divvying up the estate, you may find that some of them are motivated RIGHT NOW to sell the property, as if they were waiting for your call and the business falls in your lap. Yet we all know that in most cases, it is not that easy. If only it were.

One instance that we do not see uncommonly is when a living spouse is in the household and decides to sell the property after some period of time. If you contact the spouse or other family member that is residing in the home today, they may not want to sell. Contact these same people 2, 3, 4, even six months from now, and maybe they are ready to move onto another chapter in their lives. Perhaps they are feeling the burden of bills – keep in mind that mortgage payments, utilities, and just about every other expense that an ongoing household has to pay, must continued to be paid when someone passes. Maybe the spouse is emotionally ready to move on after some elapse of time in order to get closer to the kids and get into a new house. In other words, they need time.

In some cases, the probate process plays out and the property reverts to the heirs. At the completion of this process, the heirs have an itch to sell to cash out. Nearly always, the heirs don’t want the property. They want the cash in the property. With the new-found authority and means to sell the property attached to the estate, they are eager to do so.

In some cases, otherwise motivated sellers may not be ready to sell the property until they find out what to do with the personal belongings of their loved ones. Clearly, this is an emotionally charged, gut wrenching job, particularily if the loved one was very close. When someone passes, they have personal belongs and the executor is charged with the often thankless task of disposing of them. To the families, these are a treasure chest of memories. To an outside party, it is merely stuff. Some agents and investors we work with offer to “rescue” classic cars, fine jewerly, antiquest, and other prized items, and we know of at least one agent in Florida that makes this an intergal part of her strategy, as much or more so than selling the property. This is a touchy subject and goes beyond the scope of this article.

In summary,

• Some probates will be sold immediately.
• Sometimes, the estate will hold onto the property and sell it after some period of time.
• Sometimes, the property will be left to the surviving spouse or other family member
• Sometimes, the spouse or family member will want to sell the house after living in it for a short period of time
• Sometimes, the family member will be motivated to sell only when the personal belongings of the deceased is disposed of in a satisfactory fashion.
• Whatever the time frame, once the executor does in fact make an affirmative decision to sell the property, they will want to sell it as soon as possible.

Given such a wide range of time tables, in our view, we can recommend the following:

1. Whether your probate leads are generated through agent or attorney referrals, by compiling this data yourself at the court house, or outsourcing this tedious task to another provider, it is advisable to make multiple contacts with the executor of the estate to keep your willingness to help settle the estate “top of mind”. Through repeated contacts over a sustained period of time (also known as a drip campaign), you will reach the decision maker at the time when they are nearing an affirmative decision to sell the property, whenever that may be. > View some sample letters you can send.
2. To the extent that everyone has a different time frame to sell the property, it may be prudent to find aged or archived probate filings. Remember, someone that may not want to sell today, may find it makes sense to sell 2, 3, 4 months later. So, it is not helpful to think purely in terms of freshness or timeliness of data.

It’s a fact of life that trillions of dollars will be transferred from one generation to the next. Stay tuned to future posts where we further delve into some actionable strategies on how to capture your share of the niche probate market. Till next time, A-B-C – Always Be Closing!

I wanted to avail this post to provide an overview of the often overlooked but lucrative niche of probate investing. Literally TRILLIONS of dollars will be transferred from one generation to the next. Enter an aging baby boomer population and this fact of life will only balloon in the coming years.

Probate is the legal process to obtain the legal authority to act on behalf of the estate of a person who has passed (Decendent). The estate is distributed in accordance with:

1) The will of the deceased.
2) When a will is not present, the laws of intestate succession are applied. These laws parcel out property to the deceased person’s closest relatives.

Who’s the decision maker?

The decendent usually spells out who they wish to be in charge of their estate. Yet absent a will, the court will assign a Personal Representative (PR), more commonly known as the executor, who is tasked with the fiduciary duty of divvying up the estate to pay creditors and distribute the remaining proceeds to the heirs. While anyone can petition the court to fill the role of a Personal Representative, most states prefer the surviving spouse or registered domestic partner as the first choice, followed by adult children or other blood relatives. > Read more on the role of the Personal Representative and to familiarize yourself with other vernacular, view a glossary of probate terms here.

As a real estate investor, the main point to grasp from 40,000 feet is that the PR has been awarded the authority to sell the house. Your job is to contract it and buy it, or assign to another cash buyer. This is the crux of investing in probates.

Probates are the low-hanging fruit because the PR often has a heightened sense of urgency to sell the real property in the estate, for a host of reasons:

• There are taxes and other estate-related expenses that need to be paid, such as ongoing mortgage payments, utility bills and just about every other expense that is typical with an ongoing household.
• The heirs must pay the mortgage out of their personal finances, and this creates an urgency to sell the property as soon as possible.
• More often than not, the heirs do not want the house. They want the cash in the house. Heirs may live too far away from the property to play landlord or travel on a regular basis to maintain the property. Better to cash out and move on to build another chapter in their lives, than to be bogged down with the property.
• The PR may get in the middle of unfortunate heir in-fighting where heirs have disagreements as to their equitable share. This normally brings out the worst of people, and the PR has an increased need to liquidate the estate to end the fighting.

Investors that are able to make an early connection to build empathy and rapport with the PR and explain the benefits of working together will undoubtedly be successful. > See some letters that other investors have used to make an introduction.

The length of the probate process varies on myriad factors such as the complexity of the estate and intent of the parties – every case is different. Sometimes these deals seem to fall in your lap, as if the PR was waiting for your call. If only it was that easy in every case. One phenomena we see not uncommonly is that a living spouse remains in the house and may not be motivated to sell RIGHT NOW. A few months later, when bills are accumulating and they want to build a new life, maybe get closer to the kids, the timing is better to sell the house and move on. Since everyone’s timing is different in terms of when they want to sell the real property attached to the estate, we highly recommend a concerted, sustained “drip” campaign over time to keep your willingness to help settle the estate top of mind.

Generally, while the PR has been awarded the authority to sell the house to investors like you, some states may require the PR to seek the Court’s permission to sell the real property in what’s called a supervised probate process. It is prudent to check the laws and procedures unique to your county and state.

In future posts, I will delve more into the nuts and bolts of probate investing and bounce some other ideas around as to how you can capture your share of this niche market. Till next time, A-B-C… Always Be Closing!

At probateleads.net, our goal is pair REALTORS and investors with executors of probate estates that are motivated to sell by compiling a targeted list of probate filings in nearly every US county. If you found this article to be informative, let's continue the conversation. 

In the coming years, trillions of dollars will be transferred from one generation to the next. In real estate, probates are the low-hanging fruit because nearly always, the executor of the estate wants to sell the property at some point to pay for taxes and other estate-related expenses, pay creditors and distribute the proceeds to the heirs.

It's been said that knowledge is power. Armed with a list of recent probate filings in your area, you can identify the best opportunities in your area. Yet it is the application of that knowledge which is more powerful.

We've put together some sample letters that can serve as a springboard of ideas, when marketing to probates. > View the pdf letter samples. 

While postcards are cheap to print, cheap to mail and have no barriers to get opened, in our view a postcard is ineffective when marketing probates because it strikes as impersonal during this difficult period that the family is going through. 

For the best results, we recommend handwriting the envelope to create a personal look, touch and feel. 

Everyone has different time frames in terms of when they are ready to sell. For this reason, we recommend multiple mailings to keep your willingness to help "top of mind". Although the circumstances are different in each probate case, one thing we can say with a certainty is that once the executor wants to sell the property attached to the estate, they want to liquidate it quickly.

Any feedback or if you'd like to share any material that have produced results, we'd love to hear from you - certainly reach out. 

What does the Personal Representative, i.e., PR, Administrator or Executor responsible for? Bottom line, all you need to know as an investor is the court has awarded the PR absolute authority to sell the house. Your job is to contract it and buy it or assign to another all cash buyer. This is the crux of Probate Real Estate investing.

In common law jurisdictions, a personal representative is either an executor for the estate of a deceased person who left a will or the administrator of an intestate estate. In either case, a surrogate court of competent jurisdiction issues a finding of fact, including that a will has or has not been filed, and that an executor or administrator has been appointed. These are often referred to as “letters testamentary“, “letters of administration” or “letters of representation“, as the case may be. These documents, with the appropriate death certificate, are often the only license a person needs to do the banking, stock trading, real estate transactions, and other actions necessary to marshal and dispose of the decedent’s estate in the name of the estate itself.

As a fiduciary, a Personal Representative has the duties of:

    1.    Loyalty
    2.    Candor & Honesty
    3.    Good Faith

In the U.S., punctilio of honor, or the highest standard of honor, is the level of scrupulousness that a fiduciary must abide by.

Types of Personal Representatives include:

    •    Executor or executrix (term for females)
    •    Alternate executor
    •    Administrator
    •    Ancillary administrator
    •    Public administrator
    •    Guardian
    •    Conservator

The decedent’s usually indicate who they wish to be in charge of their estate. This individual will be known as the executor of the estate. Sometimes, there is also an alternate executor named in case the executor chooses not to or cannot perform the probate duties.

If the person in charge is female, she is known as the executrix. If the person in charge is male, he is known as the executor. If the decedent did not leave a will, any person can petition the court to be in charge of the estate. However, the court prefers a blood relative to become the administrator of the estate. In this situation if the person in charge is female, she is known as the administrix and if it is a male, he is known as the administrator. 

A couple of important documents you should be aware of are The Petition of Probate and The Letter Testamentary. The Letter or Testamentary gives the PR the authority, and the Petition for Probate gives the exact name and address of the Personal Representative. It’s important to note that these 2 documents will both be found in the Probate case files.

About

At probateleads.net, our goal is to pair REALTORS and investors with the Personal Representative by compiling a list of recent filings in your area. For expert consultation on how you can capture your share of this niche market by identifying probate opportunities in your market, visit our website or give us a call at 800-307-9124 for expert consultation. 

Pros and Cons of Cash Buying

All-cash home purchases hit a record in the first quarter of 2014, reaching 43 percent, according to RealtyTrac, which has been tracking cash-buying trends since 2011. This latest figure represents a 19 percent rise from last year—a number industry watchers attribute to stricter mortgage qualification standards coupled with high buyer demand and competition. If you're thinking about buying your next home with cash, you might be wondering how this option stacks up against a mortgage—not to mention, how you'll come up with the money.

Why Cash? Pros & Cons

On the pro side, using cash lets you sidestep mortgage loan qualifications and much of the paperwork and administrative fees. This accelerates the buying process and makes you more attractive to sellers who are eager to close. You have better odds of out-competing other buyers and better leverage to negotiate a lower price. Finally, the prospect of not having to pay monthly mortgage obligations and interest is appealing.

On the other hand, the cash you tie up in your house won't be as readily available for emergency spending. This could place you in a position of needing to sell or mortgage your home in the event of an emergency, and convincing lenders to extend a mortgage or equity loan could be difficult if you lack a steady income, a situation many retirees face. One way to address this issue is opening a home-equity line of credit after you buy your home to make sure you have emergency funds available. A reverse mortgage can also help in a pinch.

Another issue is whether the amount you save on mortgage interest might be better invested. Buying a house with cash amounts to investing in a bond with an interest rate equivalent to what you would pay with a mortgage. Compare this interest rate with other investment options to evaluate how buying your home with cash affects your long-term savings.

Finding Funds

If you want to pay for your home with cash but don't have a lump sum handy, how do you find the money? Options include:

• Realtor suggests a few strategies, including investing in a long-term CD, a method that can be combined with CD laddering if you don't want to lock up all your cash.
• For current home owners, another option is refinancing your existing mortgage into a larger one, known as "cash-out refinancing." Zillow recommends weighing this option against others, such as home equity loans and lines of credit.
• If you're receiving regular payments from an annuity or structured settlement, you may be able to sell all or a portion of your future payments to a financial services firm and put the money toward your home purchase.

What About Taxes?

Paying for your home in cash precludes the tax breaks you would get from your mortgage interest payments. Use the calculator at Mortgage101 to estimate the potential tax benefits of a mortgage so you can weigh this against buying with cash.

Which type of neighborhood is best for flipping homes?

When looking for an investment home that you eventually intend to flip it is important to remember that the location is just as vital as the actual home.  It is feasible to earn a profit in nearly every area but certain areas make it easier on the investor.

Top Qualities

When people pick out an automobile they focus on the features that are important to them and their current lifestyle.  In a similar manner, you can consider the following neighborhood features when considering an investment property:

• Homes that sold recently sold quickly and had strong interest
• Declining numbers of rental properties
• Homes at least 20 years old that will likely need significant rehab
• Steady values or, even better, increasing values
• Average age of homeowner is elderly; these people are potentially moving to better climates or downsizing
• Increased number of people moving from differing areas; signifies popularity

Three Types of Areas to Examine

In order to assist you in determining where to look for the right homes, here are three types of neighborhoods to consider.

• Rebounding areas – There are times when an older, well established neighborhood will undergo a major overhaul.  Many of the owners have made the decision to remodel the interior.  In some instances the owners may be undertaking expansive additions.
• New housing clusters – When an area becomes popular many builders will start developing new subdivisions.  The existing homes in the immediate area could be ripe for flipping.
• Farming region – Established real estate agents like to focus on an preferred area and call it their “farming area.”  They send out regular postcards and newsletters to the residents so that when a home comes up for sale they usually think of that agent first.  A home investor can follow a similar strategy and be the first to know of a potential home for sale at a discount.

Keeping Your Ear to the Ground

Some investors like to focus on their own zip code or a nearby area.  This makes it easier on them because they already know a bit about the location.  There is no long distance commuting to check out a potential property. Sometimes, neighbors can actually provide a good tip that leads to a purchase.  And the local gossip is usually easy to find.

However, this only makes sense if the area is holding steady or rising.  A neighborhood suffering from falling values, crime, or an imminent new highway is not a good choice, no matter how close it is.

Don't Get In Over Your Head

This should come as no surprise, but it is also important to remember your financing.  Finding a great home at a 40% or 50% discount is worthless if the home is $50,000 more than you can afford.  Always keep the price in the forefront of your mind since it is a very important piece of the elimination process. If a neighborhood is out of your price range, focus elsewhere.

Following a well-designed plan is important for almost everybody.  Building a business, planning a party and even putting together a family vacation all work more smoothly when there is a good plan in place.  Buying a home for flipping is no different.

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It Takes a Good Plan to be Successful in Rental Property

(Investment Properties: Part 5 of 5)

For people considering a purchase of a rental home this is truly an opportune time. The tremendously low mortgage rates coupled with attractive home prices makes this a buyer’s market.

However, numerous reports indicate that home prices are rising consistently, although modestly. If you are considering buying a home it is time to take action. Here are a few guidelines to help you plan out your first purchase.

Look to Experts

If you are looking at your first investment property purchase it would be wise to work with a real estate agent that is experienced in these kinds of deals. An agent that intends to work with an investor over the long term will be meticulous about the property recommendations to insure the investor meets their financial goals and comes back to the agent for more homes.

It is also a good idea to speak with other investors. They can provide you some guidance about what to look for in homes, what areas to avoid and other general information that is generally not found in a textbook.

What Type of Investment Do You Wish to Pursue?

Some first investors choose to buy a home at a great price and rent it out on their own. Others use the service of a management firm. And then there are the individuals that buy a home, spend some money on repairs and put the home back on the market at a price to make a profit.

It is important to consider your options and tolerance for risk. Buying a home that you can easily afford while looking for a tenant may be a good opportunity to get your feet wet.

Develop Your Team before the Purchase

If you plan to manage the property on your own, there will be a few individuals you need to contact prior to purchase. First, you will need a lender that can handle investment loans. Second, you should consult with an accountant and attorney to make sure you are covered legally and that you minimize your tax liability. Third, you should speak to an insurance agent about the proper policies to cover your investment. Finally, you will need to talk to a general handyman or one each of plumbers, electricians, roofers, painters and HVAC repairmen. Having these people lined up and ready to work for you will make much of the process go by smoothly.

Choosing the Right Area

It is important to pick a home in an area that is accustomed to rental property. Places with a high population close to schools and shopping districts are usually safe bets. Rural areas can be difficult simply because the number of available applicants is typically small. Keep in mind that you may want to sell the property in a few years. If you buy the smallest, or the largest, home in a neighborhood it can be tough to unload later.

Buying an investment home should be approached as a strictly business transaction. Decide how much you can comfortably invest and how much you hope to make as a return and let those types of items help you with the decision.

Investment/Rental Properties (5 Part Series)

• Preparing to Purchase that First Rental Home (Part 1 of 5)
• Adding the Title of Landlord Behind your Name (Part 2 0f 5)
• Rental Property is Still a Safe Investment (Part 3 of 5)
• How to Pick Profitable Rental Properties (Part 4 of 5)
• Success Plan for Investing in Rental Property (Part 5 of 5)

The market is always changing and as such, I have learned that I too need to always be changing or at least growing. With that being said, for the past 3-4 months, I have been doing a lot of reading on self directed IRAs. More specifically, the "Private Bank Concept" within the self directed IRA industry. Honestly, this concept amazes me, in fact, I am struggling to understand why more of us in the REO industry aren't cornering this market.

I guess first off, I had to realize that many people don't even know they have the ability to direct their own IRA. I had read somewhere that 3.4 trillion dollars is setting in IRA funds right now across this country and most people (like 99%) aren't making more than 1-2% annually.....if that. Granted, most of these people have their money with some investment firm who has the money diversified in stocks, bonds or mutual funds and they make money by managing those funds for you so, it's not in their interest to tell you, "hey, did you know you can do this better on your own and save the money you are paying us?" so, most of you don't know anything about self directed IRAs. Don't feel bad, as of 3-4 months ago, I didn't either. I don't even remember how or who told me about them so, I can't even source or thank anyone for directing me to this awesome opportunity.....sad but, true.

At this point, it's important to tell you, I am a Realtor, not an Investment Adviser, not a Certified Public Accountant and most definitely not an Attorney (no offense). I am simply a Realtor who is looking to drum myself up more business, make more money and start my own brokerage by the start of 2013. Like any good small business owner, I need to find capital however, I don't want to be tied to the SBA (Government Secured Loans) or tied to a bank, personally, I would like to work with individual investors however, it's tricky. Yeah, I have a proven track record and yeah, I have a great business plan...as told to me by my SCORE counselor but, it's not easy to convince someone to give me their money to grow my business and in return, I will give them their money back plus interest. Let's face it, money is tight these days for us all however, what if I was able to tap into money you aren't using to pay your day to day bills? Ok...so, who isn't living paycheck to paycheck, I get that but, some of us worked hard enough that we have nearly 3.4 trillion dollars that isn't doing much for us and my thinking was, how could I convince people to give me some of that money. My thinking was, what if I told potential investor, Priscilla Penny Pincher that I was able to find a real estate investment (flip) that would net her a 10% return on her retirement money, why would she say no? Ok....yes, I am sure you can think of many reasons to say no but, really.....10% return in 6 months on money that is making 1% return in 12 months, it's a no brainer, right?

Well, that is where the Private Bank Concept with self directed IRA funds comes into play. It's nothing more than a strategy that real estate investors are using to complete more deals than ever before. Basically, it allows me to borrow money from an individual...not a bank, to do my flips with while paying the individual back the money borrowed plus a interest rate triple, quadruple or even quince the rate they are currently getting on the money.

Yes, it's risky, it's real estate and yes, we can't guarantee anything but, we can reduce risk by implementing strong, robust loss mitigation and exit strategies so, risk is minimized. Let's also not forget, the loan you are providing me is secured by real estate....real property so, it's not like you're going into this with no collateral.

So, here I am, learnded (yes, that is my Honey Boo Boo term for the day) about this Private Bank Concept and all I need now are the funds however, I am curious, are any of my REOPro member doing this already? If so, let me know, let's talk, let's exchange resources, let's work on creating our own Private Bank!