Another Probate deal Closed in California !!

Another Probate Deal Closed !

Ok, Haven’t posted in a while. I have been pretty busy. Trying to find more time to post here to my DG Family. Seems like I always have deals that have many twist and turns. This one is one of my probate deals.

Here we go...... Mailed out letters March 2013 to people who are delinquent in property taxes. Got a call back from the heir (grandson). We talked and he said his grandfather has been deceased for a long time (1974 to be exact). He says to me he's gotten many letters but when he speaks to other investors about the property they can't help him until he finds an attorney to do the probate. I advised that I can assist him and help him file all the paper work. Bingo!!!!!! The grandson lives in Louisiana by the way and the house in Sacramento, CA. We talk and came to an agreement of $12,500.00 for a 2 bed, 1 bath, 780 sqft little house. House needs almost a total overhaul (1920's). Mailed the contract to him in March. He holds the contract from March until May, after several phone calls of trying to reach him with no luck. Finally, in May he answers the phone. He said he needed time to think and to make sure I was real. Verify with his relatives on advise about the property value. He mailed contract back to me. Well, we found more liens on the property from the city. Meanwhile after receiving paperwork back from him to start the probate, I make arrangements for probate referee to evaluate the property. You are ONLY able to use the city appointed probate referee appraisers. Sometimes they may take a month to come out, but usually about 2 weeks. I contacted the City Code Enforcement to appeal for a lien reduction for the large lien of $70,000. I had already contacted the Code Enforcement supervisor regarding a previous deal and already had his contact information (networking works). Filled out necessary appeal forms and reduction was granted. Lien reduced from $70,000 to $7,000 if repairs were made !

So with the additional liens the total was an increased 23k, originally 8k. More than 15k additional than expected....ugh Contacted seller back explained property had too many liens and I couldn't purchase for $12,500. We agreed on $5,500 and I pay closing cost except title insurance ($400). I knew the deal was tight, but agreed because I had already put so much time in. After receiving inventory and appraisal from the probate referee ($90, fee is increased as the value of property increases), and getting documents back from seller, I filed the docs at the probate court. The petition was granted. I had already began to advertise the property 2 weeks prior to this to have fresh buyers on my list. So I had screened them pretty well. I made arrangements to show it 2 times and it was sold. No inspection period allowed. Inspect first then sign contract. I was very clear on my call about serious buyers. I only wanted to show it a few times, the property was boarded all the way around by the city. At the second showing both buyers wanted it. First buyer said he was very interested and he is a contractor. He just needed to speak with his partner and would call me at 3pm (it was 1pm). Well after he left second buyer wanted it. Said he wanted to sign right on the spot! I assigned the contract for 10k and they took over the existing liens attached to the property(code enforcement, delinquent property taxes, utility). I said I would need a $1,000 EMD, and he told he said " awwww, that's not enough, I'll give you $2,000" . So I had a 2k check in hand. He took 8k to the title company. Title company cut seller a check for $5,100,....... $5,500 minus title insurance($400) which equals $5,100. I also had another 2,500 check at closing. So I made $4,500 total. This was on my son's birthday September the 7th! Closed Friday September the 13th. Hey, who said Friday the 13th is a bad day??? Not as much as I had planned, but I was able to help someone who lived in another state. The seller and I have never met face to face and he trusted me with more than just his property. Private documents, death certificates, personal info etc. That makes me proud to be who I am! I have another probate in California but it won't be complete until December. This one will be a very nice profit. I will keep you posted. By the way the other buyer did call me back at 3:30pm. I had already signed the contract with check in hand. If I had not assigned the contract I would have kept this property for myself. You can still do deals in California ! A win- win - win

** P.S. The buyers want more deals!!. They want to partner on future deals also. Invited me out this Saturday for breakfast. They brought ANOTHER partner to the meeting. He said he hired me as soon as he met me, before his partners arrived. LOL ! So even though you may not make a lot of $ on one deal......the doors may open up to many other opportunities. Much success to everyone.