Many investors who are new to real estate investing get lulled into the idea of easy money with foreclosure investing. While there is a lot of money to be made with foreclosure investing, there is a dark side to dealing with acquiring the properties; you must deal with a very unwilling and emotional seller. Probate real estate investing is far easier and just as lucrative.

Foreclosure investing and probate property investing may seem exactly alike, but there is a slight difference between the two. They both allow you to buy properties at a discount to current market prices, but one kind of investing is less difficult than the other. This small difference could be the determining factor of your success or failure especially if you are new to real estate investing.

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.

With probate real estate investing, you have a very willing seller. In all cases, you are dealing with someone who inherited a property. The house represents free money or a windfall to them. Since, they did not work for 30 years to pay off the home. This new heir just wants whatever money they can get and they want it FAST.

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.

Did I mention these taxes have to be paid in an extremely short period of time after someone dies or penalties start to pile up? So, if 55% tax looked daunting wait until those penalties and interest start mounting up. By comparison, this method of investing is far easier as you are dealing with motivated sellers in nearly all cases. They are willing to listen to any reasonable offer especially if you have the ability to settle very quickly and get them their cash.

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.