YES, You Can Buy Probate Properties With Funds From Your IRA!
Buying in and after Probate
Probate properties can yield extraordinary returns if you are lucky
enough to get the good ones. You can also sometimes find great deals
after the probate process. Inheritors often can make more use of the
money from the sale of an inherited property than of the property
itself. This means you may be able to get a great property below market
value if you are able to close the deal quickly.
Probate is the process by which the probate court distributes the assets of an individual in accordance with his or her will. In the event that a person dies intestate (without a will), the probate court distributes the assets in accordance with the law and with the intent of following the deceased's presumed wishes. The first step in probate is the settling of debts. This means assets will be sold to pay creditors before being distributed.
Settling with creditors often requires the quick sale of properties. Probate properties represent some of the best buys in real estate because they cannot sit around for years waiting to get the best price. There is often a high demand for probate properties, however, because people watch such properties closely waiting for the property to become available in the probate process.
To be successful at buying probate properties, you must be able to move quickly. This means you may lose out on a hot property if you have to get your IRA custodian to sign off on the deal before you can close it. With checkbook control of a self-directed IRA, however, you can make an offer and close the deal in an accelerated fashion giving you a much greater chance of success. With probate properties, timing is everything.
