13d • General discussion
California Investor Probate Risks
Possible ways how to make a discount defensible (Always consult your attorney)
Courts accept that a buyer is paid for risk. The deal has to show that risk on paper.
- Write a valuation memo at signing. Include an appraisal or broker opinion, plus the liens, back taxes, repair costs, title-curative costs, competing heirs, will-contest risk, probate timeline, and carrying costs. Your discount should be explainable as the cost of those risks.
- Disclose fully. Tell the heir the decedent, the case number, your estimate of the share’s value, and that you intend to profit.
- Give the heir real independence. Include a written recommendation to consult their own attorney, a rescission period, and no time pressure.
- Keep a clean file. Avoid texts or marketing language that is suspect under scrutiny. All of it is discoverable.
- Comply with §11604.5’s formalities, including the 30-day court filing, and expect the agreement to be scrutinized.
- Consider structure. Splitting upside with the heir, or paying a meaningful upfront price plus a later kicker, reads very differently than a flat lowball offer.
9
2 comments
California Investor Probate Risks
Leaderboard (30-day)
1
+41
2
+13
3
+12
4
🔥
+11
5
+11
Powered by