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What do I do when I Inherit Real Estate but No Money?

Inheriting Real Estate, but not money, can be surprising challenging.  What do I do with my inherited property? How do I pay for the mortgage? Upkeep? Attorney fees?
  • Sell the real estate as is or fix up the property and sell it: In some cases, the Real Estate inheritance may have been managed properly (to your standards) by the previous owner, and will not need much updating. You can then take immediate action toward getting the property on the market and ready for sale. In other cases, the property might need more work done to make it presentable & appealing  if you would like to put it on the market in hopes to sell it at a higher price. There is an option to hire a Real Estate Agent to help Market the property, as well as an opportunity to sell to an investor.

  • Rent it Out: Renting to someone can help by supplementing your income, writing off repairs and expenses & it buys you time until the market is right. The negative effects may involve having to refinance the home in your name, responsibility of any repairs or damages by tenants, paying a higher property tax rate & it can be costly as well as time consuming.

  • Choose to live in it: If you choose to move into the inherited property, always be aware of the Financial (Mortgage) & Physical conditions of the house. This option also requires a lot of time to think and decide what to do with your current living situation.

Regardless of what you decide to do with the inheritance, managing your decision can be difficult. It also depends on the situation of how one inherited the real estate, in which case, decision making can potentially be altered. In some situations, beneficiaries know exactly what they want to do in regards to the property. However, in others, one may have an emotional connection (ex. Death in the family, Divorce, etc.) to the Inheritance, or other people involved (Partial Beneficiary) in the Inheritance, weighing in on resolutions. In these cases, it is common to see individuals struggle with the decision making on the Real Estate inherited.

As seen above, in the different options displayed, some things to consider when you do inherit Real Estate are the Taxes, General Costs & Time that is involved. This pertains to the specific situation of the inheritance, the state in which the Real Estate is, as Tax Laws can vary, and what you decide to do with the inheritance. The Taxes involved include: Inheritance Tax, Estate Tax, Capital Gains Tax & Property Tax. The underlying difference between them focuses primarily on who is responsible for paying the Tax. For example, Inheritance Tax, unlike Estate Tax, requires the beneficiary of the property to pay the tax. Estate Tax relies on the total value of a deceased person’s money and property, which is then taken from their assets before it is in the hands of any beneficiaries. However, taxes may be exempted or reduced, due to the situation of the inheritance & Tax Laws. It is important to research and be educated on all of the possibilities before making a decision on what to do with your inheritance.

How Can JCAP Private Lending Help?

JCAP specializes in probate loans & also has the ability to customize Loans to YOUR needs. In the time of inheriting Real Estate, feeling overwhelmed and unsure of what decision to make, We can help support you with a Loan, to buy some time, save you from foreclosure & possibly eliminate payments throughout the process. We are a Direct Lender who closes and services Investor Funded Short-Term Real Estate Loans.  Our experienced team has been providing quality mortgage services for over 30 years. JCAP Private Lending is an Asset Based Lender who steps in to quickly solve a short-term financial need secured by Real Estate. JCAP has an innovative approach to lending, focusing on speed, simplicity, and safety for borrowers and investors. Located in Costa Mesa, CA, JCAP Private Lending primarily lends Hard Money & Private Loans secured by 1st & 2nd TD’s on residential property. For further information, please visit

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