Creative Finance Meets Probate: Structure Deals with Sub-To, Novations & Wholetail
Probate real estate is packed with potential but if you’re still pitching only cash offers or doing lazy flips, you’re leaving money (and trust) on the table. The investor space is saturated, but your competition? Most haven’t evolved.
Standing out isn’t about shouting louder. It’s about offering smarter, more strategic options that meet people where they are… in the middle of an emotional, legal, and logistical storm.
The Hidden Challenges in Probate Real Estate
Probate real estate investors who rely solely on sixty cents on the dollar wholesale deals, cash offers and quick flips are now at a serious disadvantage. The market for probated real estate is shifting. The real estate investing world is getting more crowded, and your old strategy of making a low cash offer and hoping it beats the competition is no longer enough.
1. Market Saturation: The Lowball Race to the Bottom
Even though the Probate real estate niche is still highly profitable, the rise in competition is making it harder for you to secure profitable deals. This is especially true in the highly competitive probate mail and phone prospecting environment.
- Statistic: According to RealtyTrac, 56% of inherited home purchases were made by investors, and the number of real estate investors in the probate space has risen by 35% over the past five years. If you're still relying on old tactics, you're fighting with antiquated weaponry.
How are you positioning yourself to make profits in this increasingly crowded probate real estate market?
2. Emotional Resistance: It’s About The Sentimental Value The Home Holds
Probate properties aren’t just houses, they are family legacies, and heirs are often emotionally attached. Trusts and estate plans leave behind properties that have sentimental value. For these families, it’s not as easy as making a low offer, then moving toward a sale or fast wholesale assignment. Most of these families need time and only work with those who can offer creative solutions.
- Statistic: Almost 43% of probate properties sit unsold for over 180 days because heirs are hesitant to part with family homes. Source: RealtyTrac.
Are you considering the emotional aspects of probate deals, or are you just rushing in with another cash offer?
3. Legal Complexity: The Probate Maze Isn’t Optional
The probate process as you know is a legal maze for the families going through it. From probate court filings to power of attorney and trusts, the legal hurdles involved make a lightning fast sale to a fast cash investor less appealing.
Have you considered how much more business you will win, by helping families navigate the probate maze?
Quick side note: If you don’t know how to offer this higher level service, we can show you. Grab our free Probate Foundations Class Here
Is It Time to Embrace Creative Financing?
Most investors don’t know these strategies exist. That’s your unfair advantage.
1. Novation Agreements: Control the Deal, Without the Ownership
A novation allows you to replace the original contract with a new one. No need to buy the property outright. Perfect for trust-held homes and emotionally sticky situations.
✅ Great for: Properties in good condition that just need better marketing
2. Wholetail Investing: Quick Flips, Smarter Margins
Buy slightly under market, clean it up (no major reno), and resell retail.
Combine wholesaling speed with retail profit.
Stat: Wholetail deals perform best on properties with minor repairs especially inherited ones with deferred maintenance but solid bones.
✅ Great for: Families who want fast cash but don’t want to be insulted
3. Subject-To Deals (Sub-To): Take Over Without Taking On
Gain control of the mortgage payments without assuming the loan. It’s ideal for heirs who just want out but still have a mortgage in place.
- Use this strategy ethically. Make sure you involve a probate attorney.
✅ Great for: Behind-on-payments or underwater homes with cooperative heirs
4. Newer Tactics Flooding the Scene: Credit Card Stacking (Use With Caution)
Opening multiple 0% business credit cards and cashing them out to fund deals is trending. It works if you have a clear use of funds and fast ROI.
-Dangerous if used recklessly. Don’t go into debt on a maybe. Use only with high-confidence deals.
How to Present Creative Options the Right Way
Your strength is in asking the right questions strategically and calmly until they reveal exactly where they stand. That’s how you gain the upper hand.
→ Start with this disarming question: “Do you have everything handled, or is there anything I can take off your plate?”
→ Then offer multiple paths:
◦ Cash Offer (for speed)
◦ Listing Option (for top dollar)
◦ Owner Financing (for passive income)
◦ Sub-To (if there’s a mortgage)
◦ Wholetail (for quick upgrades and a better retail price)
→ Back it with resources:
◦ Send a resource kit with:
◦ Probate FAQ brochure
◦ Local vendor list
◦ Seller Option Sheet
◦ Comparative Market Analysis
This doesn’t just show value it builds trust. And when the family is ready, guess who they call first?
Be the Investor That Families Trust
In probate, the win doesn’t always go to the highest bidder. It goes to the one who understands, who explains, who helps.
When you come in with multiple creative finance strategies, transparency, and a service-first mindset, you don’t just become an investor or realtor, you become the obvious choice.
Ready to learn how to consistently close 2 probate deals a month?
🎥 Watch the free 10-minute training that breaks down how to handle a wide range of probate lead scenarios including cash-strapped sellers, mortgage-heavy homes, emotionally resistant heirs, and legally complex estates. ⬇️
This isn’t just for Sub-To or Novation deals.
It’s a complete guide to filling your pipeline with probate leads so no matter who you’re talking to or what their situation is, you’ve got the right solution ready to go.
Because that’s how you become remarkable in this niche.