Frequently Asked Questions
Why should I sell to an investor?
Investors do not require mortgage approval, an appraisal, or a house inspection. You avoid all the obstacles of a typical home sale. Owners who sell to an investor find themselves in one of the following situations:
- Bad tenants
- Code violations
- Financial hardship
- Inherited property
- Outdated (needs renovations)
- Rundown (needs maintenance/repairs)
- Tax defaults
- Upgrading (make room for family)
- Work relocation
I hear investors make low ball offers. Is this true?
There are two types of investors: house flippers and rental property owners. Flippers usually pay 70% of the property’s value AFTER repair value. Their offer estimates how much they can sell it for after flipping minus repairs. Flippers, then, are looking for distressed properties that need TLC.
Rental Property Investors, on the other hand, prefer properties that require minor or no repairs. They want a deal that gives them a monthly income of 1% of the purchase price. Their offer is based on how much they can rent it out for, minus repairs. If your property is in top shape and in a high-rent area, you may get its market value.
How does an investor make their offer?
Our investors may also conduct their own research on the property, where it’s located, and compare it to similar properties for sale in the area.
What fees or commissions can I expect?
Do I need a real estate agent?
How soon do I get my cash?
Does the property need to be cleaned out?
What Is Probate?
The personal representative (also known as the executor or executrix) who is named in the will is legally in charge of this process and is responsible for handling the orderly method for administration of the estate as set forth by the probate laws and procedures of their state. The executor is typically held accountable for their actions and decisions by the heirs and other beneficiaries and in some cases may be formally supervised by a probate court. If a will does not exist or a personal representative is not designated in the will, the court will appoint one (assuming there is personal property to distribute).
The personal representative is often entitled by law to a reasonable fee or commission for their services.
Probate law generally encourages or provides for partial distributions of funds during the period of administration and assets are often distributed “in kind” rather than sold during this period. Tax laws generally look to the personal representative as being responsible for making death tax filings and other tax payments from the outstanding assets of the deceased. Therefore, choosing an executor / executrix / personal representative is an important decision.
The basic job of administration and accounting for assets must be done whether the estate is handled by a personal representative as part of the probate process or if probate is avoided. In the recent past, lawyers and other professionals have advocated the use of probate avoidance techniques (such as revocable trusts, etc.) in states where the probate process has been seen to be too slow and overly expensive. In recent years, many states have simplified or streamlined their probate processes, and, in such states, there is now less reason to employ probate avoidance techniques.
Is it necessary for all the decedent’s property to go through probate?
Usually, real and personal property owned under a structure called “joint tenancy with rights of survivorship” passes to the surviving co-owner(s) without a requirement for probate.
Other types of benefits, such as a life insurance policy or an annuity that is payable directly to a named beneficiary can often be tendered without the requirement for probate. Also, IRAs, Keoghs, and 401(k) accounts usually transfer to the persons named therein as heirs or beneficiaries automatically without probate. Bank accounts that are set up as “payable-on-death” accounts; ones that are being “held in trust for” specific heirs or beneficiaries (also called a “Totten Trust”) also pass the proceeds directly to the named heirs or beneficiaries without probate.
A “living trust” that holds title to a property held in trust also passes that property to the heirs or beneficiaries without probate. Such a trust is a legal entity which survives after the death of the person who created it.