We’ve had a string of inherited estate notes recently, and they’ve reminded me just how much opportunity there is in this niche — if you’re willing to take the time to understand it.
None of these came without a few bumps, but each one turned into a win for the seller and a solid investment for us. And yet, I still talk to note investors who’ve never considered going after this kind of deal.
Let me give you a quick snapshot of three recent ones.
Three Real-World Examples of Estate Notes
Florida – Inherited From Parents, Then Sole Heir
The seller had inherited a note with her brother from their parents. When her brother passed away, she became the sole owner and administrator of the estate. She didn’t want the headaches of collecting from the borrower anymore and was worried about delinquent taxes and lapsed insurance.
On top of that, the original note was lost — something we had to solve to close the deal.
Washington State – Tying Up a Trust
In this case, a woman in her 90s wanted to sell a note that was an asset of her trust. Her goal was to get the trust’s affairs in order before she passed, and selling the note helped her do that. We were able to help up front and keep the process smooth.
Pacific Northwest – Referred by a Financial Planner
A financial planner sent us a brother and sister who had inherited a note from their parents (a familiar theme). While this note had current taxes and timely payments, they wanted to simplify and consolidate the estate by selling the note for cash.
Different states, different sellers, different circumstances — but all shared the same underlying theme: inherited notes can be great opportunities if you know how to work with professionalism to solve problems.
What Are Estate and Probate Notes?
An inherited note, sometimes called an estate note or probate note, is a promissory note and mortgage (or deed of trust) transferred to heirs after the original note holder passes away.
These notes often appear in probate cases or are part of a trust setup for estate planning. With an estate, the heirs become the new note holders, responsible for collecting payments, paying taxes, and managing the collateral.
Why Many Investors Overlook This Niche
Even experienced note buyers skip over inherited notes because:
- They assume probate will slow things down.
- They’re unsure how to approach heirs or work with multiple decision makers.
- They don’t realize these sellers often want to sell.
Why They’re Worth Pursuing
- Motivated sellers: Heirs often want to settle the estate and move on.
- Lower competition: Many investors don’t market to probate or trust situations.
- High impact: You’re solving a problem at a difficult time.
- Referral potential: One attorney, accountant, or financial planner can send multiple deals your way.
Challenges to Be Aware Of
- Probate delays: Not all estates are ready to sell right away.
- State-by-state rules: Procedures and requirements vary widely.
- Missing details: Heirs often don’t know the balance, rate, or payment history.
- Lost documents: Original notes or mortgages may need to be replaced or re-established.
- Sensitivity: You’re working with people during a time of loss, which calls for patience and professionalism.
Working These Deals Successfully
Working on probate notes takes a delicate touch and organization. There are emotions and additional paperwork that investors should be prepared to handle. You need to…
- Be comfortable coordinating with attorneys, title companies, and sometimes courts.
- Offer valuations for estate settlement purposes.
- Keep communication clear and respectful with multiple heirs.
- Have solutions for common issues like lost notes, lapsed insurance, or delinquent taxes.
Finding Inherited Note Opportunities
While these notes may find you naturally through your ongoing marketing, here are a few ways to source these deals directly:
- Review public probate filings.
- Send respectful direct mail to heirs.
- Build relationships with probate and estate attorneys, CPAs, and financial planners.
- Create online content targeting “inherited note” searches.
The Bottom Line of Probate Notes
Inherited estate notes can be more complex than buying directly from the original note holder — but the payoff is worth it. You’re not just buying a note; you’re providing a valuable solution to people trying to wrap up an estate.
If you want to learn exactly how to market for and close inherited note deals, we recently added this inside our Marketing for Notes Masterclass. It’s packed with strategies, templates, and examples you can start using right away – click here to learn more!
Leave a Reply