How To Do Probate Deals in Real Estate: Make $20K Per Deal Without Expensive Marketing
Episode Summary
In this powerful episode of The Real Estate Investing Club, I sit down with Barbara Barnes, a probate investing expert who transformed her life from making $18/hour to generating multiple six figures annually through off-market real estate deals. Barbara shares her proven system for finding profitable probate properties with minimal marketing costs—spending less than $10,000 per year while consistently closing deals worth $20,000 or more.
Key Takeaways:
- How Barbara made her first $20,000 deal within 4 months of starting
- Why probate properties offer the best opportunities for high-equity deals
- The exact process for finding and contacting probate leads for free
- How to build trust with heirs and executors to close more deals
- Why you don’t need expensive PPC ads or mailers to succeed in wholesaling
- The three critical factors that make probate properties highly profitable
What Is Probate Real Estate and Why Is It So Profitable?
Probate real estate represents one of the most overlooked goldmines in property investing. As Barbara explains, “Probate is the legal process that happens when someone passes away. It’s the legal process like all the court stuff… everything that you own is a part of your estate. But we know that the biggest asset that most people have is a house.”
The profitability of probate properties comes from three key factors that create perfect storm conditions for investors. First, these properties typically have substantial equity because they’ve been owned for decades. Barbara emphasizes this crucial point: “Most of these properties were owned for a long period of time. A lot of times people don’t keep their property up and they need a lot of work… And then it’s great for us as investors is because it has a lot of equity. So there’s a lot of room in these deals to actually make money.”
Second, the heirs inheriting these properties often lack emotional attachment to them. As I pointed out during our conversation, “When people sell their personal homes, they’re a little bit more emotionally connected to it. And they want that top, top, top dollar… But if it’s not their house, if it’s their parents’ house… they don’t have that emotional connection. And so they’re more willing to accept a more reasonable offer.”
Third, the circumstances surrounding probate create natural motivation to sell. Family members often can’t afford to maintain the property, don’t live nearby, or simply need to divide the estate among multiple heirs. Barbara notes, “Family members really can’t afford the house. Family members are fighting and something needs to happen.”
How Can I Find Probate Properties Without Spending Money on Marketing?
The beauty of probate investing lies in its accessibility through public records. Unlike other real estate strategies that require expensive marketing campaigns, probate leads are freely available to anyone willing to do the research. Barbara’s system, which she’s used successfully for over a decade, relies on this public information.
“Everything is public records,” Barbara explains. “When you open up an estate or your probate, inside of the application, you have to talk about the assets, the things that that person owns, money, stocks, bonds. And in real estate, that’s what we’re looking for.”
The process starts at your local courthouse or online court records system. You’re looking for newly filed probate cases that list real property as part of the estate. Once you identify these cases, you can find contact information for the executor or personal representative directly in the court filings. This information includes names, addresses, and often phone numbers—everything you need to make that initial contact.
Barbara’s approach is refreshingly straightforward and cost-effective: “My marketing dollars are probably no more than $10,000 a year, and I’m making multiple six figures.” This stands in stark contrast to investors spending tens of thousands on pay-per-click advertising or direct mail campaigns.
What Should I Say When Contacting Probate Sellers?
The key to success in probate deals isn’t just finding the leads—it’s knowing how to approach grieving families with empathy and professionalism. Barbara emphasizes that trust is the foundation of every successful probate transaction. “If you frame a conversation in a way where someone trusts you, you can make money and you don’t have to worry about spending a ton of money on leads.”
The conversation should never start with an offer or even mention of buying the property. Instead, Barbara recommends beginning with genuine condolences and an offer to help. She approaches these conversations as a problem-solver, not a buyer. This might sound like: “I saw that you’re handling your mother’s estate. First, I want to express my condolences for your loss. I help families navigate the process of dealing with inherited properties, and I’d be happy to answer any questions you might have.”
Barbara’s success comes from positioning herself as a resource rather than just another investor looking for a deal. She helps families understand their options, whether that’s keeping the property, selling it traditionally, or accepting a cash offer. This consultative approach builds the trust necessary for families to feel comfortable working with you during a difficult time.
When Is the Best Time to Contact Probate Leads?
Timing is crucial in probate investing, and Barbara has identified three optimal windows for making contact. Understanding these timing patterns can dramatically increase your success rate.
The first opportunity comes immediately after the probate filing. “I think the sweet spot really is for a brand new, is a brand new lead, someone who just filed probate,” Barbara explains. At this stage, families are often overwhelmed and appreciate guidance about their options. They haven’t yet been bombarded by other investors, giving you the advantage of being first.
The second sweet spot occurs around the six-month mark. Barbara notes, “Your six month old leads.” By this point, the initial shock has worn off, but the reality of maintaining the property—paying taxes, insurance, utilities, and maintenance—has set in. Heirs who initially wanted to keep the property may have changed their minds after dealing with these ongoing expenses.
The third opportunity, and perhaps the most lucrative, comes with older probate cases. “Those year old, two year old probates, especially the two year old ones,” Barbara emphasizes. She adds a crucial insight: “If someone filed probate two years ago and the property is still on the market or still sitting, they’re going to want to sell that house because they’re not going to want to lose the biggest asset which can make the estate money.”
How Do I Handle Multiple Heirs Who Disagree About Selling?
One of the most challenging aspects of probate investing is navigating family dynamics when multiple heirs are involved. Barbara addresses this common scenario with practical wisdom gained from years of experience.
“It’s sometimes difficult when you’re dealing with multiple heirs who don’t agree,” Barbara acknowledges. “You’ll have an heir who wants to keep the house, then you’ll have an heir who wants to sell. But here’s the thing, if you want to keep a property, you have to actually buy the other heirs out.”
The key is understanding that keeping the property requires action, not just desire. Barbara explains that the heir wanting to keep the property must either refinance to buy out the other heirs or come up with cash to pay them their share. Most people can’t or won’t do this, which eventually leads to a sale.
Your role as an investor is to present yourself as the solution that satisfies everyone. You can offer a fair cash price that allows all heirs to receive their inheritance quickly, avoiding lengthy disputes and ongoing expenses. Barbara’s approach is to work with the executor or personal representative, who has the legal authority to make decisions for the estate, while being respectful of all family members’ concerns.
What Makes Probate Properties Better Than Other Off-Market Strategies?
While there are many ways to find off-market deals—pre-foreclosures, absentee owners, distressed properties—probate offers unique advantages that make it particularly attractive for both new and experienced investors.
The equity position in probate properties is typically far superior to other distressed property situations. Unlike pre-foreclosures where owners might be upside-down on their mortgages, probate properties often have little to no debt. Barbara points out, “Most of these properties were owned for a long period of time,” meaning the original mortgage is often paid off or nearly paid off.
The competition is also different in probate. While every wholesaler is sending mailers to absentee owner lists or running Facebook ads for motivated sellers, fewer investors are willing to do the consistent, respectful work required for probate investing. This creates less competition and better margins for those who master the process.
Additionally, probate provides a consistent, predictable source of leads. Death is an unfortunate but consistent life event, meaning new probate cases are filed every week in every county across America. This creates a renewable source of opportunities that doesn’t dry up during market changes.
How Much Money Can I Really Make From Probate Wholesaling?
The financial potential of probate wholesaling is substantial, as Barbara’s own story demonstrates. “I did my first deal in four months and I made $20,000,” she recalls. This wasn’t a lucky break—it’s a repeatable result she’s achieved consistently for a decade.
Barbara now generates multiple six figures annually while keeping her marketing costs under $10,000 per year. This exceptional return on investment is possible because probate properties typically have enough equity to support significant wholesale fees. When you’re dealing with a property worth $300,000 that needs $50,000 in repairs, and you can get it under contract for $150,000, there’s plenty of room for a $20,000-30,000 wholesale fee while still providing value to your end buyer.
The key to maximizing profits is understanding your local market and building relationships with cash buyers who can close quickly. Barbara emphasizes that success isn’t about doing hundreds of deals—it’s about doing quality deals with good margins. “If I can help you make $20,000, $10,000 just on a niche,” she explains, demonstrating that focused effort on high-quality probate leads beats the volume game every time.
What Are the Common Mistakes to Avoid in Probate Investing?
Learning from others’ mistakes can save you years of trial and error. Barbara and I discussed several critical errors that newcomers to probate investing often make.
The biggest mistake is being too aggressive or insensitive in your approach. These are grieving families, not just motivated sellers. Coming in with lowball offers or pushy tactics will not only kill your current deal but damage your reputation in the community. Barbara’s advice is clear: “You just have to become that person who is trustworthy, who has integrity and who has a good heart and who really, really want to help people.”
Another common error is giving up too quickly. Barbara emphasizes the importance of following up over time: “Your six month old leads… Those year old, two year old probates.” Many investors make one or two attempts and then move on, missing the opportunity that comes when families are finally ready to sell.
A third mistake is trying to force every lead into a wholesale deal. Sometimes the best service you can provide is connecting the family with a good real estate agent for a traditional sale, or helping them understand their options for keeping the property. Building a reputation as someone who genuinely helps families, regardless of personal benefit, leads to more referrals and long-term success.
How Do I Get Started in Probate Investing Today?
Starting your probate investing journey doesn’t require significant capital or experience—just dedication to learning the process and serving families well. Barbara’s own journey began while making just $18 an hour, proving that financial constraints don’t have to stop you.
Your first step is to visit your local courthouse or access online court records for your county. Look for the probate or estate division and ask how to access recent filings. Many counties now have this information available online, making it even easier to get started. Focus on cases filed within the last week to ensure you’re getting fresh leads.
Next, create a simple tracking system. You don’t need expensive CRM software initially—a spreadsheet works fine. Track the deceased’s name, property address, executor’s name and contact information, filing date, and your contact attempts. This organization is crucial for following up effectively over time.
Barbara’s community at offmarketcommunity.com provides detailed training on each step of the process. As she explains, “We niche down and we go into each niche and we talk about how you can be of service, how you can be of value, whether you choose a probate niche, absentee, pre-foreclosure, whatever niche you choose within the community, like we really go deep into that niche.”
The most important element is taking action. Barbara’s advice to her younger self applies to anyone starting out: “Learn, be open to learn from people and don’t take everything so serious.” Start with just five probate leads this week. Practice your approach, refine your script, and remember that every conversation is a learning opportunity.
Remember, as Barbara wisely states, “You make your own decisions in life. You may get information from people, but don’t ever be stupid and make your own calculated decisions because at the end of the day, you’re responsible for all of the decisions that you make in your life.” Take the information you’ve learned here, apply it to your market, and start building your own probate investing success story.
Want to learn more about our guest? Connect here: www.offmarketcommunity.com
Want to learn more about the REI Club Podcast? Click here: https://www.therealestateinvestingclub.com
Want to grow your business with ads? Join our sister company here: https://www.kaizenmarketingagency.com
Want to invest in Gabe’s next deal? Click here: https://www.kaizenpropertiesusa.com
Want to join our community of active investors? Click here: https://linktr.ee/gabepetersen