Consider all options

Buying property through probate court is an option that’s sometimes overlooked. While it is not for everyone, it can reap big rewards.

In general, a property lands in probate court when its owner has died without a will or can no longer manage his or her affairs. Properties are sold "as-is," without contingencies and usually without staging, fanfare or marketing. A probate court judge presides over an auction-like sale and facilitates the sale in the best interest of the selling party. Buyers must pay a 10% deposit on the spot.

In 2005, a two-unit building in the Mission District went into probate when the owner became unable to manage his affairs. Brendon recognized the building's significant appreciation potential. He brought together first-time buyers Teddy Chierici, Rossa Sheridan, and Heather Marlow to purchase the building as a group. An inspection was done on the property prior to the court date to ensure the potential buyers were comfortable.

The probate court judge set the opening bid at $943,000 and raised the price in $5,000 increments. There were five other parties bidding on the property and the price began to rise rapidly. With a pre-planned bidding strategy, Brendon and the buyers waited as the other buyers dropped out. Eventually, the judge awarded the property sale to Teddy, Rossa, and Heather for just over $1 million — well within their budget and below the market value. Within 45 days, and after simply painting the interiors and refinishing the floors, the property increased in value by 10%.

“Buying a property through probate court wasn't something I would have been interested in," says Heather. “But Brendon convinced us this property was a great buy, and that we were the right buyers. He knew exactly what we needed to do, and when.”