Virginia Estate Services

Immediate First Steps (Within 1-2 Weeks): 

Some of this may seem overwhelming, but we can help you as your local resource here. 

 

• Secure the Property:

  • [ ] Change locks and secure all entrances.

  • [ ] Check for and address any immediate hazards (e.g., leaks, broken windows).

  • [ ] Arrange for immediate maintenance (lawn care, snow removal, etc.) to prevent further damage and comply with local ordinances.

 

• Locate Important Documents:

  • [ ] Deed to the property.

  • [ ] Will of the deceased (if applicable).

  • [ ] Insurance policies (homeowners, flood, etc.).

  • [ ] Property tax records.

  • [ ] Mortgage documents (if any).

  • [ ] Any existing leases or rental agreements (if applicable).

  • [ ] Utility bills.

 

• Contact Key Professionals (Crucial for Out-of-State Ownership):  We can provide referrals.

  • [ ] Attorney specializing in probate and real estate in the property's state: Essential for navigating local laws and inheritance procedures.

  • [ ] Insurance agent: Review and update existing insurance policies. Crucial for landlord coverage if renting. Ensure proper coverage for vacant property if applicable.

  • [ ] Property manager in the area: If renting is a strong possibility, contact property managers immediately to discuss services and fees.

 

II. Property Assessment and Legal/Financial Matters (Within 1-2 Months):

 

• Determine Ownership and Legal Status:

  • [ ] Work with the attorney to understand the terms of the will (if one exists) and the inheritance process in the property's state.

  • [ ] If no will exists, understand the intestacy laws of the property's state.  We can help provide guidance here.

  • [ ] File necessary paperwork with the probate court in the property's jurisdiction.

  • [ ] Obtain Letters Testamentary (if a will exists) or Letters of Administration (if no will exists) to prove legal authority.

 

• Financial Matters:

  • [ ] Determine if there are any outstanding debts or liens against the property.  We can provide help and guidance here.

  • [ ] Understand property tax obligations and payment deadlines.

  • [ ] If there's a mortgage, determine the payoff amount and assess if refinancing is advantageous.

  • [ ] Set up a dedicated bank account for property-related expenses.

 

• Property Inspection (Critical for Investment Properties):

  • [ ] Conduct a thorough inspection by qualified professionals (home inspector, plumber, electrician, HVAC specialist, roofer, etc.) to identify all potential issues. Factor these costs into your ROI calculations.

  • [ ] Get quotes for necessary repairs and renovations.

    • We have teams to help with this.

 

• Decide on the Future of the Property (Investment-Focused):   We can help by discussing your options.

  • [ ] Sell: Analyze potential profit after all costs (repairs, closing costs, taxes). Is it a flip or a long-term hold?

  • [ ] Rent: Project rental income, expenses (including property management fees), and calculate cash flow. Is it a good fit for your portfolio?

  • [ ] Keep (Unlikely as an investor unless strategic): Analyze why you would keep it without renting or selling.

 

III. Sale, Rental, or Continued Ownership (Ongoing):

 

• If Selling: We can help here.

  • [ ] We are a cash buyer and work with other real estate professionals and investors if you decide to sell.

  • [ ] Handle closing procedures, including paying any applicable taxes and fees. We work with several local title companies to make this process easier.

 

• If Renting: We can help here.

  • [ ] Hire a property manager (highly recommended for out-of-state owners) or handle tenant screening, rent collection, and maintenance yourself (consider the time commitment).  We can help here.

  • [ ] Prepare a lease agreement that complies with local laws.

  • [ ] Establish a system for tracking income and expenses.

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• If Keeping:  If you decide to keep we can refer you to local handy companies and service providers.

  • [ ] Establish a plan for ongoing maintenance and repairs.

  • [ ] Ensure property taxes and insurance are paid on time.

 

• Tax Implications

  • [ ] Understand the tax implications of inheriting, owning, and renting/selling the property, including depreciation, capital gains taxes, and potential 1031 exchanges.

  • [ ] Consult with a tax advisor to optimize tax strategies.

 

IV. Other Important Considerations:

 

• Travel: Factor in the time and expense of traveling to the property's location, especially initially.

• Communication: Establish clear communication channels among family members and professionals involved.

• Legal and Financial Advice: Don't hesitate to seek professional advice throughout the process. Real estate and inheritance laws can be complex, and it's important to protect your interests and maximize your investment.

• Local Resources: Research local resources for contractors, service providers, and other necessary assistance. Build a network in the area.

• Long-Term Strategy: Align the inherited property with your overall investment strategy. Is it a short-term flip, a long-term rental, or something else?   

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Schedule a 30 Minute Meeting - Virginia Estate Services

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Chip Hoisington

chiphoisington@gmail.com

c. 703.867.4079

Real Estate Purchases and Leases

c. 703.688-2100

http://www.clearpath-properties.com