There are so many foreclosure investing courses on the market today. Unfortunately, many of them make wild claims about how easy foreclosure investing can be. You must understand, there is a little known dark side to this type of investing. You must deal with a very emotional and unwilling seller. Probate Real Estate Investing does not have this flaw and it can be just as profitable.

A brand new real estate investor might think that investing in foreclosed homes is just like investing in probate real estate. It is true that both methods of investing in real estate involve buying properties at a large discount relative to market value; however, the way in which you go about buying the properties varies greatly. There is a subtle difference between the two that could make or break your success in your newly chosen investing plan though.

Where foreclosure investing is concerned, you will likely be dealing with a distressed or unwilling seller. In this unfortunate situation, the homeowner is likely losing their home due to unforeseen expenses piling up. The homeowner will feel they are being forced out of their home in a most unfair manner. For the investor to be of the most help and for the chance of securing the best possible outcome, the seller will need to leave the home behind. This can be an emotionally draining process for both sides as it is such a life changing time. In many instances, the foreclosure situation is so advanced, the best an investor can do is save the homeowner’s credit.

As you can see, foreclosure investing involves assisting an unwilling and, often times, emotionally charged situation. If you are not a compassionate person, you should consider avoiding foreclosure investing. Even veteran real estate investors shudder at the thought of making a profit at the expense of putting a family out of their home. It’s emotionally draining on both sides.

Probate real estate investing by its nature involves dealing with people who have inherited free and clear properties. They are usually willing to deal with you to get the property sold. Many times, heirs are in need of cash, so these deals can be done quickly since the heir wants their money right away.

It is very fortunate that you are dealing with a person who needs money in a short period of time. They see the probate home as a vault of locked money. In many cases, heirs are settling the affairs of the deceased and are cash strapped. Death taxes can be staggering when it comes to estates that were not set up to minimize death taxes.

These death taxes need to be paid in a very small amount of time after the homeowner dies. If the taxes are not paid in a timely manner, interest and penalties start mounting up. The heirs do not want to see their inheritance vanish in a whirl of tax mayhem. Probate property investing, as you can, see is much easier as you are dealing with super motivated sellers; almost every time. They want their cash now, and you can get it to them.

While it may have seemed that foreclosure investing is the same as probate real estate investing, the two vary greatly when it comes to getting the property as an investment. Foreclosure investing draws you into an emotionally charged environment where the outcome is unpredictable. On the other hand, probate property investing involves picking the best properties from a line of ready and willing sellers and that’s a whole lot easier for a beginner or a long-time investor.