This advanced course is designed for real estate investors seeking to master the niche, high-profit strategy of “Probate Subject-To” investing. This is not for beginners. We will navigate the complex intersection of probate law and creative finance to acquire properties that are headed for foreclosure, providing a solution for distressed heirs while creating significant profit opportunities. The entire curriculum is built upon the foundational principles from REISkills.com, emphasizing legal precision, ethical deal-making, and strategic profit realization.

Module 1: Introduction and The Fundamentals of “Subject-To”

Learning Objective: Understand the core concept of probate real estate and the fundamental mechanics of a “Subject-To” transaction.

Chapter 1.1: What is Probate Subject-To Real Estate?

Probate Defined: The legal process through which a deceased person’s assets, including real estate, are distributed to heirs and beneficiaries.
The Core Opportunity: This strategy targets specific probate situations where:
- The deceased had very little or no equity in the property.
- The estate has limited or NO funds to keep the mortgage current.
- The heirs are confused but willing to deal with the property to avoid total loss.
The Investor’s Role: To intervene early, often before severe delinquency, and take over the property “subject-to” the existing mortgage, preventing foreclosure.

Chapter 1.2: Understanding the “Subject-To” Process

Defining “Subject-To”: The investor takes title to the property, but the existing loan remains in the original borrower’s (deceased’s) name. The investor simply agrees to make the payments.
Crucial Distinction: YOU ARE NOT ASSUMING THE LOAN. The original borrower’s estate remains the entity of record with the lender.
The Bank’s Perspective: Lenders prefer performing loans over owning real estate. As long as payments are made on time, they typically do not interfere, even if the checks are signed by a new party.

Module 2: Identifying and Evaluating Qualified Deals

Learning Objective: Learn to identify the signs of a qualified probate deal and conduct the essential financial feasibility analysis.

Chapter 2.1: Why These Deals Emerge (The Heir’s Predicament)

Lack of Equity: A property with minimal equity cannot be sold traditionally without the heirs losing money to Realtor commissions, closing costs, and necessary repairs, guaranteeing a foreclosure outcome.
Heir Challenges:
- Recent purchase by the deceased, leaving little equity.
- Medical bills or other debts depleting the estate’s cash.
- Realtors refusing to list the property due to insufficient funds for a conventional sale.
- Heirs feeling overwhelmed and having “just about wrote the property off.”

Chapter 2.2: Key Steps in Deal Identification and Feasibility

Property Identification: Confirm the property meets the trifecta: low/no equity, financially strained estate, and cooperative heirs.
Mortgage Evaluation: Perform due diligence on the existing mortgage: monthly payment, interest rate, escrow status, and the total cost to reinstate any arrears.
Feasibility Decision: Determine if you can afford the monthly payments, the reinstatement cost, AND a monetary offer to the heirs. If cash is short, consider bringing in a partner to “leverage the deal.”

Module 3: Heir Engagement and Contract Initiation

*(Based on Chapters 5 & 4 – Steps 4-5)*

Learning Objective: Master the art of communicating with distressed heirs and properly initiating the legal contract.

Chapter 3.1: Working with Emotionally Distressed Heirs

Tact and Compassion: Approach heirs with empathy, recognizing their emotional and financial strain.
The K.I.S.S. Method (Keep It Simple Stupid): Use a clear, simple script to explain your offer. Example: *”I’ll pay the estate $1,000 for you to deed me your interest. I will make the mortgage current and retire the loan in 2-3 years. Otherwise, the house will likely go to foreclosure soon.”*
Title Explanation: Briefly explain that title will be held in a Land Trust for privacy and asset protection.
Monetary Nuance: Be transparent that the cash paid may go to the estate to satisfy creditors, as directed by the probate court, not necessarily directly to the heirs personally.

Chapter 3.2: The Initial Contract Phase

“Agreement For Sale” Contract: This document expresses the intent of both parties and outlines the deal terms.
Essential Contract Elements:
- Total Purchase Price summary (including earnest money).
- Approximate balance of the existing loan being taken “subject-to.”
- Explicit clause stating the buyer is NOT assuming the loan.
- Contingency upon clear title.
- “Time is of the essence” clause.
- Buyer typically pays all closing costs; seller pays none.

Module 4: Legal Documentation and Attorney Strategy

(Based on Chapters 6, 7, & 8)

Learning Objective: Identify the critical legal documents required and develop a strategy for successfully working with potentially skeptical attorneys.

Chapter 4.1: Imperative Legal Requirements

Professional Advisement: YOU MUST HAVE A COMPETENT REAL ESTATE ATTORNEY. All forms must be reviewed and potentially amended for your specific state’s laws and the probate proceedings.
Obtain Clear Title: Your attorney or title company must conduct a thorough title search to identify all heirs. If there is no will, affidavits of heirship may be needed. The goal is to insure clear title, guaranteeing 110% ownership to prevent future claims.

Chapter 4.2: Essential Legal Documentation

Document Name	Purpose & Key Details
Authorization To Release Information	Grants you permission to contact the lender to obtain loan details for due diligence.
Warranty Deed To Trustee	The legal document where heirs (Grantors) deed their interest in the property to the Trustee of your Land Trust.
Irrevocable Limited Power Of Attorney	Grants you full authority to manage the property (pay mortgages, taxes, lease, etc.). Must be modified to be “irrevocable.”
Land Trust Document	Establishes the trust that holds legal title to the property, providing privacy and protection.
Assignment Of Beneficial Interest	Transfers the beneficial ownership of the Land Trust from the heirs to you, giving you 100% control and interest.
Due-On-Sale Acknowledgement	A document where both parties acknowledge the risk of the lender invoking the due-on-sale clause.

Chapter 4.3: Strategic Attorney Management

Attorney Risks: Attorneys can be “deal killers” because creative strategies like Land Trusts are not traditionally taught. They may shoot down the deal to protect their clients from perceived risk.
Engagement Strategy:
1. Heirs First: Gain initial approval from the heirs before engaging their attorney.
2. Detailed Presentation: After heir approval, explain the program in detail to the attorney.
3. Face-to-Face Meeting: If possible, meet with the heirs and the attorney together. This “carries a lot of weight.”
4. Total Transparency: Be “extremely up front” with the attorney, show them all your forms, and maintain a professional demeanor.

Module 5: Transfer and Profit Realization

*(Based on Chapters 4 – Steps 7-9 & 9)*

Learning Objective: Execute the final steps of the property transfer and understand the primary exit strategy for realizing profits.

Chapter 5.1: Securing Final Authorization and Transfer

Obtain Court Permission: Your probate attorney should petition the court for authorization for the heirs to sell the property. This should be done swiftly, as the mortgage is still accruing.
Transfer Ownership: Once court approval and clear title are secured, the heirs sign the Warranty Deed to transfer ownership.
D.O.S. Management: The contract must include a clause where the seller(s) agree to defend, indemnify, and hold the buyer harmless if the lender discovers the transfer and calls the loan due.

Chapter 5.2: Making Profits – The Exit Strategy

Built-in Advantage: You acquire properties with great existing financing and often some built-in equity.
Primary Exit: Owner Financing: The most probable strategy is to sell the property on an owner-financed basis to a retail buyer for a 2-3 year term.
The Five-Figure Payday: Your buyer makes payments to you. At the end of the term, they refinance with a new loan, paying you the lump-sum difference between the mortgage payoff and the property’s appreciated value. This results in a “five-figure payday!”

Appendix: Review Tools & Resources

Glossary of Terms

Affidavits of Heirship: Legal documents used to establish the heirs of someone who died without a will (intestate).
Assignment Of Beneficial Interest: The document that transfers ownership of the benefits of a Land Trust from one party to another.
Due-on-Sale Clause: A provision in a mortgage contract that allows the lender to demand full repayment of the loan if the property is sold or title is transferred.
Indemnify: To secure against hurt, loss, or damage; a contractual obligation to compensate for any loss or liability.
Land Trust: A legal entity where a trustee holds the title to real estate for the benefit of the beneficiary, who retains full control and ownership rights.
Subject-To: A real estate transaction where the buyer takes title to a property “subject to” the existing mortgage, which remains in the original borrower’s name. The buyer is not personally liable for the loan.
Warranty Deed to Trustee: A deed that conveys title from the seller (heir) to the Trustee of a Land Trust, with a guarantee (warranty) of clear title.

Frequently Asked Questions (FAQs)

Q: Am I assuming the loan?
- A: NO. This is the most critical distinction. You are taking title subject to the existing loan, which remains in the deceased’s name. You are simply making the payments.
Q: Why are attorneys often “deal killers”?
- A: Most attorneys are trained in traditional real estate and probate. Creative strategies like using Land Trusts fall outside their standard practice, leading them to advise caution to their clients to avoid perceived risks.
Q: How do heirs benefit from this?
- A: Heirs avoid the certainty of foreclosure, the associated credit damage to the estate, and receive a monetary sum for an otherwise unsellable asset. They are relieved of a significant financial burden.
Q: What is the biggest risk?
- A: The lender discovering the title transfer and invoking the Due-on-Sale clause, demanding immediate full repayment of the loan. However, this is statistically rare if payments are kept current.

Probate Subject-To Deal To-Do List

Phase 1: Identification & Analysis

Find probate properties meeting the criteria (low equity, no cash, willing heirs).
Perform initial mortgage evaluation (payment, arrears, interest rate).
Conduct a preliminary feasibility analysis (can you afford payments + reinstatement + heir compensation?).

Phase 2: Heir Engagement & Contract

Approach heirs with compassion and the K.I.S.S. method.
Explain the program, the use of a Land Trust, and the monetary offer.
Execute the Authorization To Release Information to get full loan details.
Draft and sign the “Agreement For Sale” contract with all essential elements.

Phase 3: Legal & Due Diligence

Engage a competent real estate attorney experienced in creative deals.
Have attorney/title company perform a full title search to identify all heirs.
Prepare all necessary legal documents (Warranty Deed, Land Trust, Power of Attorney, etc.).
Manage the attorney relationship with transparency and a face-to-face meeting if needed.

Phase 4: Transfer & Execution

Have your attorney obtain formal court authorization for the sale.
Ensure clear title is insured.
Execute all final documents, transferring ownership to your Land Trust.
Reinstate the mortgage and begin making timely payments.

Phase 5: Profit Realization

Market the property for sale using an Owner Financing strategy.
Qualify a buyer and set up a 2-3 year payment plan.
Manage the property and ensure your buyer’s payments cover the underlying mortgage.
Collect your five-figure payday when your buyer refinances at the end of the term.

Legal and Tax Resource Links

As this course involves complex legal and tax implications, it is imperative you conduct your own research and consult with professionals.

Here are starting points from the American Bar Association (ABA) and the Internal Revenue Service (IRS).

American Bar Association (ABA) Resources:

- ABA Real Property, Trust and Estate Law Section: https://www.americanbar.org/groups/real_property_trust_estate/ – This section provides resources and can help you find attorneys specializing in these areas.

Finding a Lawyer:

- The ABA does not provide direct referrals but offers guidance on how to choose a lawyer. It is crucial to find an attorney licensed in your state. You can use your state’s bar association website for referrals.

Internal Revenue Service (IRS) Resources:

- IRS Topic No. 409, Capital Gains and Losses: https://www.irs.gov/taxtopics/tc409 – Essential for understanding the tax implications of your profit from the eventual sale.
- IRS Publication 544, Sales and Other Dispositions of Assets: https://www.irs.gov/pub/irs-pdf/p544.pdf – A more detailed guide on the tax rules for selling property.
- IRS Publication 559, Survivors, Executors, and Administrators: https://www.irs.gov/pub/irs-pdf/p559.pdf – Provides tax information for those dealing with an estate, which is helpful for understanding the heir’s situation.

Disclaimer: This course outline is for educational purposes only and does not constitute legal, tax, or financial advice. The strategies discussed involve significant risk. You must consult with qualified legal and tax professionals before attempting any real estate transaction.

Understanding Medicaid’s role is essential when dealing with a deceased person’s property, as it can directly impact whether a deal is possible or not.

Here is a discussion on Medicaid, Probate, and the Family Residence, complete with key concepts and links to authoritative resources.

Medicaid, Probate, and the Family Residence: A Guide for Investors

When an elderly person passes away, their home is often their most significant asset. If that person received long-term care benefits through Medicaid, the state and federal government have a legal right to seek reimbursement from their estate for the costs of that care. This process is known as Estate Recovery.

For a real estate investor looking at a probate property, discovering that the deceased received Medicaid is a major red flag that requires immediate and careful due diligence.

Key Concepts for the Investor

The Estate Recovery Program:

What it is:Federal law requires states to attempt to recover the costs of long-term care (nursing home, home-based care) from the estates of deceased Medicaid recipients.
What it targets:The primary target is the probate estate, which typically includes the family home if it was solely in the deceased’s name and passes via probate.
The Claim:The state’s Medicaid agency becomes a creditor of the estate, similar to a credit card company or a hospital. Their claim often takes priority over distributions to heirs.

The Impact on Your Probate Deal:

A Superior Lien:A Medicaid estate recovery claim is not a lien on the property in the same way a mortgage is. However, it is a claim against the estate. Before the Personal Representative (Executor) can legally transfer clear title to you, they must satisfy all valid creditor claims, including the one from Medicaid.
The Deal-Killer Scenario:You negotiate a “Subject-To” deal with the heirs to take over a $50,000 mortgage, offering them $5,000 for their equity. However, you later discover the state has a Medicaid claim for $100,000. The estate is legally obligated to pay that claim. To do so, the Personal Representative must sell the property for full market value to pay off both the mortgage and Your “subject-to” deal with low equity is now impossible.
The Viable Scenario:The property has a $50,000 mortgage and is worth $200,000. The Medicaid claim is $40,000. In this case, the estate has sufficient equity. The heirs could still work with you, but the sale would likely need to be a traditional one where the mortgage is paid off, Medicaid is reimbursed, and any remaining funds go to the heirs. The “subject-to” strategy may not apply.

Exceptions and Protections (What Heirs Might Argue):

Surviving Spouse:Estate recovery is always postponed if there is a surviving spouse, a child under 21, or a blind or disabled child of any age living in the home.
Hardship Waivers:Some states may grant a hardship waiver if recovery would cause a surviving heir significant financial duress (e.g., they would lose their own primary residence). These are rare and difficult to obtain.
Non-Probate Assets:If the home was held in a Living Trust, as Joint Tenancy with Right of Survivorship, or had a Transfer-on-Death (TOD) Deed, it may bypass probate entirely. In many states, this also shields it from Medicaid estate recovery. This is a key reason why title work is non-negotiable.

The Investor’s To-Do List for Medicaid Issues

Early Questioning: During initial contact with the heirs, ask tactfully: “Did your loved one receive any long-term care assistance through Medicaid, perhaps for a nursing home?”
Title Search is Paramount: Your first official step must be a title search. This will reveal if a Notice of Lien for Medicaid has been filed against the property. (While the claim is against the estate, some states file liens to put potential buyers on notice).
Demand Proof of Claims: The Personal Representative’s attorney is required to notify all known creditors. You or your attorney should request to see the list of filed claims against the estate. Confirm whether Medicaid has filed one.
Consult an Elder Law Attorney: If a Medicaid claim exists or is suspected, the involvement of an Elder Law attorney is crucial. They can advise the estate on the validity of the claim and any potential defenses.

Essential Links and Resources

For the most accurate and state-specific information, the following resources are invaluable.

1. Official Government Medicaid Resources

Medicaid.gov: Estate Recovery
- URL: https://www.medicaid.gov/medicaid/eligibility/estate-recovery/index.html
- What it is: The official federal Medicaid site explaining the laws and requirements for state estate recovery programs.

Your State’s Medicaid Agency Website

- How to find it: Search for “[Your State] Medicaid estate recovery” or “[Your State] Department of Health and Human Services.”

Why it’s critical

- Estate recovery rules vary significantly by state. Some states are very aggressive; others are more limited. Some only pursue probate assets, while others may pursue non-probate assets like jointly held property or living trusts. You must know your state’s specific laws.

Elder Law and Professional Organizations

National Academy of Elder Law Attorneys (NAELA)
- URL: https://www.naela.org/
- What it is: The premier national association for attorneys specializing in elder law, special needs, and estate planning.
- Use for: FINDING A QUALIFIED ATTORNEY. Their “Find a Lawyer” directory is the best place to locate a local expert who can navigate Medicaid claims and estate recovery. This is the most important resource on this list for dealing with an active issue.
American Bar Association (ABA) – Real Property, Trust and Estate Law Section
- URL: https://www.americanbar.org/groups/real_property_trust_estate/
- What it is: A broad section of the ABA dealing with property and estate law. While not exclusively for elder law, it provides resources and connects you to attorneys in this field.
Consumer Financial Protection Bureau (CFPB) – “What is a reverse mortgage?”
- URL: https://www.consumerfinance.gov/ask-cfpb/what-is-a-reverse-mortgage-en-1561/
- Why it’s relevant: Many seniors use reverse mortgages. It’s important to understand that a reverse mortgage must be paid off when the borrower dies, which often forces a sale. This can interact with Medicaid planning and probate.

Conclusion for the Investor

A potential Medicaid estate recovery claim is one of the most significant due diligence hurdles in probate investing. It can instantly vaporize any perceived equity and make a “subject-to” deal impossible.

Your mantra must be: “No clear title until Medicaid is satisfied.”

Always conduct thorough title work and, when in doubt, insist that the estate’s Personal Representative consults with an Elder Law attorney to determine the exact scope of any Medicaid obligation before you invest significant time or money into a deal.

Is it true the executor can sell the residence asset for any price buy there are rules for administrator personal representative?

The short answer is: No, that is not precisely true.

Both an Executor (named in the will) and an Administrator (appointed when there’s no will, also called a Personal Representative) have a fundamental legal duty to act in the best interest of the estate and its beneficiaries. This means they generally cannot sell a property, especially the primary residence, for “any price.”

However, the statement hints at a real distinction: the source of their authority and the degree of court scrutiny can differ, often making it seem like an Executor has more freedom.

Let’s break down the rules and responsibilities for both.

The Fiduciary Duty: The #1 Rule for Both

Whether called an Executor or an Administrator, a Personal Representative is a fiduciary. This is the highest legal standard of care. It means they must act:

In Good Faith: With honesty and loyalty to the beneficiaries.
With Prudence: Using the care and skill a reasonable person would use in managing their own affairs.
Impartially: Not favoring one beneficiary over another.

Selling a key asset like a house for a knowingly low price (“any price”) is a clear breach of this fiduciary duty. Beneficiaries can sue the Personal Representative for damages (the lost value) and potentially have them removed by the court.

Executor vs. Administrator: Key Differences in Authority

Aspect	Executor (Named in the Will)	Administrator / Personal Representative (No Will – Intestate)
Source of Authority	The Will (through “Testamentary” powers) and the Probate Court.	Solely the Probate Court by statute (Intestate Succession laws).
Powers Granted	The Will often grants “full power and authority” to sell real estate without further court approval. This is known as “independent authority” or “non-intervention powers.”	Powers are strictly defined by state statute. They have no inherent power until the court grants it.
Court Supervision	Often operates with less direct court supervision if the will grants independent authority. They can list, negotiate, and sell the property without needing a judge’s sign-off on the specific offer.	Almost always operates under greater court supervision. They frequently must get a judge’s prior approval before even listing the property or must get retroactive approval for the specific sale terms.

The “Rules” for Selling the Property

Regardless of their title, the process for selling the residence is governed by the goal of achieving the Highest and Best Price (or “Fair Market Value”). Here are the common rules and steps that apply to both, though with different levels of enforcement:

Formal Appraisal: It is standard practice to get at least one, and often two, formal appraisals to establish the property’s Fair Market Value. This protects the Personal Representative from claims they sold it for too little.
Arm’s-Length Transaction: The sale must be to an unrelated third party, not to the Personal Representative themselves, a close family member, or a friend, without specific, fully-informed consent from all beneficiaries and/or court approval.
Marketing the Property: The property should be marketed in a manner customary for the local market. This typically involves listing with a licensed real estate agent for a reasonable period to expose the property to the open market and generate multiple offers.
The Role of the Probate Court:
- For an Administrator: The court is deeply involved. The Administrator may need to file a Petition for Order Confirming Sale where they present the proposed price, the appraisal, and the terms to a judge for approval. The judge ensures the price is fair.
- For an Executor: If the will grants independent authority, the Executor may be able to close the sale and simply file a final accounting with the court afterward, showing what the property sold for. However, if a beneficiary objects, claiming the price is too low, the court can still intervene.
Reporting to Beneficiaries: Both Executors and Administrators are required to keep beneficiaries reasonably informed about the status of the estate, including the listing and sale of major assets.

When a “Low Price” Sale Might Be Permitted

There are limited circumstances where a Personal Representative might be allowed to sell for less than the appraised value, but it must be justifiable:

“As-Is” Sale with Major Repairs Needed: If the house needs a new roof, has foundation issues, or is otherwise distressed, a lower “as-is” price might be the true market value.
Commission and Cost Savings: Selling to an investor for a slightly lower price might be justified if it saves the estate from paying Realtor commissions and closing costs, netting the same amount to the estate.
Speed and Certainty: In a slow market, a slightly lower but certain, cash offer from a qualified buyer may be preferable to a higher offer that is contingent on financing and could fall through.
Court Approval: If the Administrator gets a bona fide offer and petitions the court for approval, explaining the circumstances, the judge may approve it as being in the estate’s best interest.

Conclusion

It is a myth that an Executor can sell a property for “any price.” While an Executor often has more independence in the process due to powers granted in the will, they are still bound by their fiduciary duty to get the best possible price for the beneficiaries.

An Administrator, with authority derived solely from the court, typically operates under much tighter scrutiny and must get the sale price approved by a judge before proceeding.

For a real estate investor, this means:

When dealing with an Executor, understand they have broad power but can still be sued for a “fire sale” price.
When dealing with an Administrator, be prepared for the deal to require a judge’s approval, and ensure your offer is close to the appraised value to have it confirmed.

Helpful Resource Links

American Bar Association – Guide to Probate:
- https://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning/an_introduction_to_wills/
- This resource explains the basic probate process and the roles involved.
Nolo.com – The Executor’s Role in Selling Real Estate:
- https://www.nolo.com/legal-encyclopedia/selling-real-probate
- Nolo provides excellent plain-English legal guides that detail the duties of an Executor, including the sale of property.

What if there is a re apprasail, what kind of discount with both administrator and executor?

This is a critical question that gets to the heart of negotiating probate deals. The existence of a second, lower appraisal is a powerful tool, but how it’s used depends heavily on whether you’re dealing with an Executor or an Administrator.

Here’s a breakdown of the scenarios and the realistic discounts you can target.

The Power of a Second Appraisal

A new, lower appraisal doesn’t automatically change the property’s value, but it creates a legitimate justification for a lower sale price. It provides “cover” for the Personal Representative (PR) to accept a lower offer without being accused of breaching their fiduciary duty.

Reasons a new appraisal might be lower:

The initial appraisal was outdated or overly optimistic.
The property has deferred maintenance not fully accounted for initially.
The market has softened.
The new appraiser used more accurate, lower-valued comparable sales (“comps”).
The cost of necessary repairs has been more accurately factored into the valuation.

Scenario 1: Dealing with an Executor (Named in the Will)

An Executor with independent authority has the most discretion. A lower appraisal gives them a solid, defensible reason to accept your offer.

How to Approach & Realistic Discounts:

The Justification: Present the new appraisal to the Executor and their attorney. Your argument is: “The market evidence now shows the fair market value is $X. My offer of $Y is based on this new, professional valuation.”
Realistic Discount Range:
- 5% – 10% Below New Appraised Value: This is often considered a “good deal” but still within the realm of a fair market transaction. It accounts for typical buyer negotiation and the “as-is” nature of probate sales.
- 10% – 15% Below New Appraised Value: This becomes very compelling, especially if you can justify it with:
  - Cash Offer, No Contingencies: You are providing certainty and speed, which has tangible value to an estate wanting to close.
  - Significant Repair Costs: You provide estimates showing the property needs $20,000 in roof repairs, so a $280,000 offer on a $300,000 appraised property is actually fair.
- >15% Below New Appraised Value: This is the “home run” deal but is much harder to get an Executor to accept unless the appraisal reveals major, previously unknown issues (e.g., foundation problems, severe mold). The Executor would need to be confident that no other buyer would pay more, which is a high bar.

Key Takeaway for Executors:

They can often agree to a discount without court approval, but they must be able to justify it to the beneficiaries. The lower appraisal is their primary justification.

Scenario 2: Dealing with an Administrator (Court-Appointed)

This is where the process is more rigid. The Administrator’s hands are often tied by the existing court order, which is typically based on the original appraisal.

How to Approach & Realistic Discounts:

The Hurdle: The Administrator may have already petitioned the court for authority to sell the property at a price range based on the first appraisal. They often cannot legally accept your lower offer without going back to the judge.
The Required Process: The Administrator must file a Supplemental Petition or a Petition for Order Confirming New Sale Price. This petition must include:
- The new, lower appraisal.
- Your purchase contract.
- An explanation for the price difference (e.g., “The market has shifted,” “The initial appraisal failed to account for roof replacement”).
- A request for the court to approve the new, lower sale as being in the best interest of the estate.
Realistic Discount Range & Strategy:
- The discount itself is less important than the justification. The judge doesn’t care that you want a “good deal”; they care that the sale price is fair given the new evidence.
- Your offer should be very close to the new appraised value. A judge is highly likely to approve a sale at 95%-100% of a new, credible appraisal.
- A discount of 5% – 10% below the new appraisal is often justifiable with the right reasoning (cash, quick close, as-is).
- A steeper discount is possible only if the new appraisal reveals catastrophic issues that drastically reduce the value. The judge will see the appraisal notes.

Key Takeaway for Administrators

: The discount isn’t between you and the Administrator; it’s between your offer and the new, court-approved value. The Administrator is merely a messenger to the court. Your job is to make your offer so justified by the new appraisal that the judge has no reason to reject it.

The Investor’s Playbook for Using a New Appraisal

Order & Pay for the Appraisal Yourself: As an investor, you can proactively hire a licensed, reputable appraiser. Be transparent with the PR that you are doing this to make a data-driven offer. A credible appraiser’s report will be trusted by the PR, their attorney, and the court.
Tie Your Offer Directly to the Appraisal: Your offer should state: “Purchase price is $XXX,XXX, which is [X]% of the appraised value of $XXX,XXX as determined by [Appraiser Name] in report dated [Date].”
Frame it as a Solution, Not a Lowball: Present yourself as the solution to a problem. “The new appraisal shows the property is worth less than we all thought. However, my cash offer at this price provides the estate with a certain and quick solution, avoiding further market decline and carrying costs.”
Leverage the “Subject-To” Angle (If Applicable): If you are doing a “subject-to” deal, your justification for a discount is different. You can argue the price is lower because:
- You are taking on the risk of the due-on-sale clause.
- You are responsible for all back payments and repairs.
- The heirs are getting immediate cash for an otherwise unsellable, foreclosure-bound asset.

Summary

Executor: A new, lower appraisal is a negotiating tool. You can realistically target a 5-15% discount from the new value, with the higher end requiring strong justification like major repairs.
Administrator: A new, lower appraisal is a requirement for court approval. You must target a price very close to the new appraised value (e.g., 95%-100%) because a judge must formally approve it. The discount is effectively what the new appraisal dictates.

In both cases, the second appraisal moves the goalposts. It provides the legal and ethical justification for the Personal Representative to accept less than the original expected price, allowing you to acquire the property at a favorable basis.

Here is a comprehensive To-Do List for building and managing relationships with probate attorneys, from initial contact to becoming a trusted resource. This is critical for consistently sourcing probate deals.

To-Do List: Building a Profitable Relationship with Probate Attorneys

Goal: To position yourself as a professional, knowledgeable, and reliable solution for the attorney’s clients who need to dispose of problematic real estate.

Phase 1: Pre-Contact Preparation & Research

Objective: Be prepared before you make the first call.

1. Create Your Target List:
- Search local bar associations for “Elder Law,” “Trusts & Estates,” and “Probate” attorneys.
- Use online directories (Martindale-Hubbell, Avvo, etc.) and filter by practice area and location.
- Network with real estate agents, title companies, and other investors for referrals.
- Track your list in a CRM or spreadsheet with contact info, notes, and follow-up dates.

2. Develop Your “Why”: Craft a clear, one-sentence value proposition.

- Example: “I provide a quick, cash-based solution for heirs who are stuck with a property that has little equity and is headed for foreclosure.”

3. Prepare Your Materials:

- Have a professional, simple website or one-page PDF explaining your service.
- Prepare a brief “Proof of Funds” letter or bank statement (redacted for privacy).
- Draft a one-page FAQ for attorneys addressing common concerns (Due-on-Sale, process, how you protect the heir).

Phase 2: The Initial Contact & First Impression

Objective: Get a 5-minute phone call or introduce yourself via email.

Choose Your Method: Phone is often more personal; email is less intrusive.

What to Say on the Phone (Script):

- “Hi, my name is [Your Name]. I’m a local real estate investor, and I specialize in helping heirs and personal representatives with properties that are difficult to sell through traditional means—specifically those with low equity or facing foreclosure. I know you’re busy, but I was hoping I could take 5 minutes to introduce myself and see if this is a service that might ever be a resource for your clients.”

What to Write in an Email (Template):

- Subject: A potential resource for your probate clients
- Body: “Dear [Attorney’s Name],
  My name is [Your Name] and I am a local real estate investor. I specialize in assisting personal representatives and heirs by providing a quick, as-is, cash purchase option for properties that have little to no equity and cannot be sold traditionally without forcing a foreclosure.
  I understand you work with many clients navigating probate, and a problematic property can be a significant burden. I would be happy to be a resource for you if such a situation arises. I am prepared to move quickly and can provide proof of funds.
  Please feel free to save my contact information. I’ve also attached a brief one-page overview for your reference.
  Sincerely, [Your Name][Your Phone][Your Website]”

Phase 3: The First Meeting or Phone Call

Objective: Build credibility and trust, not to pitch a specific deal.

Do NOT lead with “Send me your deals!” Instead, focus on educating them.

What to Say & Key Talking Points:

1. Acknowledge Their Role: “I understand that your primary duty is to protect your client and the estate. My goal is to provide a solution that fulfills that duty when a property is a liability.”
2. Explain the Niche: Clearly define the specific probate situation you solve.
  - “The heirs I can help the most are those with a property that has a mortgage, but little equity, and no cash in the estate to make payments.”
3. Explain Your Process Briefly: Mention you use an “Agreement for Sale” and that you take title “subject-to” the existing financing. Immediately address the elephant in the room.
4. Address the Due-on-Sale Clause Head-On:
  - “I’m sure your first concern is the ‘due-on-sale’ clause. We are transparent about this. We explain the risk to the heirs, and our contract includes an indemnity clause where the estate agrees to defend us if the loan is called. However, in practice, lenders rarely call these loans as long as payments are kept current, as they prefer a performing mortgage.”
5. Discuss the Attorney’s Role: “We always recommend that our contracts be reviewed by the estate’s legal counsel. We are not here to replace your advice but to provide a viable option for your client.”

Phase 4: The “Deal in Progress” Stage (An Attorney Calls You)

Objective: Make the process seamless and build the attorney’s confidence.

What to Say When They Call:

- “Thank you so much for reaching out. I appreciate you thinking of me. To make sure I fully understand if I can help, can you tell me a little about the property and the situation?”

Gather Key Information Tactfully:

- “What is the approximate mortgage balance and the estimated market value?” (This identifies equity)
- “Is the mortgage current?” (This identifies urgency)
- “Are the heirs aware of the situation and motivated to sell?” (This identifies willingness)

Set the Next Steps:

- “Based on what you’ve told me, it sounds like this might be a fit. The next step would be for me to review the mortgage statements and, if possible, do a quick exterior viewing of the property. If everything checks out, I can present a formal offer to you and the heirs for review.”
- Crucially: “How would you prefer I communicate with the heirs? I am happy to work directly through you, or I can meet with them with you present, whichever you and they are most comfortable with.” This shows respect for their role.

Phase 5: Managing the Relationship During a Deal

Objective: Reinforce that you are professional, transparent, and easy to work with.

Be Proactive with Communication: Provide brief, regular updates to the attorney. No news is good news, but a quick “Everything is on track, the title search is complete” builds immense trust.
Be Transparent with Documents: Send the attorney all the documents you plan to use before the heirs see them (Agreement for Sale, Land Trust docs, Due-on-Sale Acknowledgement).
Respect Their Advice: If the attorney suggests a change to the contract, be accommodating unless it fundamentally breaks the deal. They are protecting their client, and your flexibility makes you a preferred partner.
Do Not Practice Law: Never give legal advice to the heirs. Always defer to their attorney. “That’s a great question, and one you should definitely discuss with [Attorney’s Name] to ensure you’re fully protected.”

Phase 6: Post-Deal Follow-Up & Long-Term Nurturing

Objective: Turn a one-time transaction into a long-term referral source.

Send a Thank-You Note: After the deal closes, send a personalized thank you note (or email) to the attorney.
- “Thank you for allowing me to assist your clients, the [Heirs’ Name], with the sale of their property. It was a pleasure working with you, and I hope we can be a resource for you again in the future.”
Provide a Small Token of Appreciation (Optional but Effective): A gift card to a nice coffee shop or restaurant is often appreciated.
Add Them to a Nurture Sequence: Add them to a mailing list (with their permission) where you send quarterly market updates or relevant articles—but no hard selling.
Check-In Periodically: Every 4-6 months, send a brief, friendly email or make a call.
- “Hi [Attorney’s Name], it’s [Your Name]. I was just thinking of you and wanted to check in. I hope all is well. Please keep me in mind if you come across any other challenging property situations.”

By following this structured to-do list, you transition from being “just another investor” to a valued professional partner that probate attorneys are happy to recommend to their clients in need.

Here is a powerful marketing piece designed to be used as a one-page handout, PDF, or webpage section to communicate your value proposition to probate attorneys clearly and effectively.

Marketing Piece: How We Assist Probate Attorneys

Headline: We Provide Certainty. You Provide Protection.

Subheadline: Your trusted partner for liquidating problematic probate real estate—quickly, professionally, and for a fair cash price—no matter the condition.

As a probate attorney, you know that a single problematic property can stall an estate for months, create frustrated heirs, and generate endless headaches. When a property has little equity, needs major repairs, or is occupied by a hoarder, the traditional “list with an agent” model often fails, leading straight to foreclosure.

That’s where we come in. We are not traditional home buyers. We are specialized solution providers for the estates that need help the most.

The Problem We Solve For You & Your Clients

We step in when the property is more of a liability than an asset. Common scenarios include:

The “No Equity” Problem: The mortgage balance is too high for a traditional sale to cover commissions and costs.
The “Distressed Condition” Problem: The property needs major repairs (roof, foundation, mold) that the estate cannot afford.
** The “Hoarding Situation”:** The property is filled with debris, requiring extensive, costly cleanup.
The “Motivated Heir” Problem: The heirs live out-of-state, are emotionally drained, and need a fast, simple, as-is sale to move on.

Our Simple, 3-Step Process for a Hassle-Free Sale

We make the process seamless for you and your clients, ensuring everything is handled professionally and transparently.

Step 1: Evaluate & Offer

You provide us with basic property details. We quickly perform our due diligence and present a fair, all-cash offer within days. The offer is simple and easy to understand.

Step 2: Approve & Accept

We present our offer directly to you and the heirs. We explain our process clearly, answering all questions. There are no commissions, no hidden fees, and no closing costs for the estate.

Step 3: Close & Cash Out

We handle all the details and can close in as little as 7-21 days, on your timeline. The heirs receive their cash and are freed from the burden of the property forever.

Why Attorneys Trust Us as Their Preferred Partner

Your Concern	Our Guarantee
“I need to protect my client and fulfill my fiduciary duty.”	We provide a transparent process and a firm, written cash offer. You can confidently present our offer as a viable alternative to the costly and uncertain foreclosure path.
“The property is a disaster—hoarded, damaged, or outdated.”	We buy as-is. No cleaning, no repairs, no inspections needed. Hoarding, fire damage, mold, foundation issues—we’ve seen it and we can handle it.
“My clients need certainty and speed.”	We are cash buyers. There is no buyer financing fall-through. We close quickly, stopping the clock on mortgage payments, taxes, and insurance.
“I’m concerned about liability and complex clauses.”	We are transparent and professional. All our contracts are reviewed by our own legal counsel and are designed to be straightforward for you to review. We respect your role completely.

Why We Are a Better Solution Than Foreclosure

Presenting our service isn’t just about selling a house; it’s about providing the best outcome for a difficult situation.

	Listing with an Agent	Foreclosure	Selling to Us
Speed to Close	3-6 Months (if it sells)	6-12+ Months	As Little as 7-21 Days
Cost to the Estate	5-10% in Commissions & Fees	Damaged Credit, Deficiency Judgments	$0. We Pay All Costs.
Property Condition	Must be “Show Ready”	Irrelevant	We Buy AS-IS, Any Condition
Certainty of Outcome	Low (Sale can fall through)	Guaranteed (But negative)	High (Guaranteed Cash Close)

Why We Are a Better Solution Than Foreclosure

Presenting our service isn’t just about selling a house; it’s about providing the best outcome for a difficult situation.

	Listing with an Agent	Foreclosure	Selling to Us
Speed to Close	3-6 Months (if it sells)	6-12+ Months	As Little as 7-21 Days
Cost to the Estate	5-10% in Commissions & Fees	Damaged Credit, Deficiency Judgments	$0. We Pay All Costs.
Property Condition	Must be “Show Ready”	Irrelevant	We Buy AS-IS, Any Condition
Certainty of Outcome	Low (Sale can fall through)	Guaranteed (But negative)	High (Guaranteed Cash Close)

Why We Are a Better Solution Than Foreclosure

Presenting our service isn’t just about selling a house; it’s about providing the best outcome for a difficult situation.

	Listing with an Agent	Foreclosure	Selling to Us
Speed to Close	3-6 Months (if it sells)	6-12+ Months	As Little as 7-21 Days
Cost to the Estate	5-10% in Commissions & Fees	Damaged Credit, Deficiency Judgments	$0. We Pay All Costs.
Property Condition	Must be “Show Ready”	Irrelevant	We Buy AS-IS, Any Condition
Certainty of Outcome	Low (Sale can fall through)	Guaranteed (But negative)	High (Guaranteed Cash Close)

Hear From a Colleague

“My firm had an estate with a severely hoarded property that was two months from foreclosure. [Your Company Name] stepped in, provided a fair cash offer, and closed in two weeks. They handled the entire cleanup process seamlessly. They turned our biggest liability into a solution and made our clients incredibly grateful. They are my first call for any challenging probate property.”
– [Fictional/Real Testimonial from a Local Probate Attorney]