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Beedle the Bard, a wizard who writes fairy tale, is also the author of The Tale of the Three brothers. The three brothers were Antioch, Cadmus, and Ignotus Peverell.

The tales of Beedle the Bard are known, for many, that those stories don't exist and are plainly fairy tales.

But the Tale of the Three Brothers is real according to the HP DH, the Elder Wand, The Resurrection Stone, and the real Invisibility Cloak.

From these events, Beedle seemed to be realistic enough to write such 'tale' that exists.

By such, did he actually believe that this story is real or did he believe that it was just a rumor. If he believed that the Master of Death exists, where did he get the information of the Peverell brothers' story of the Deathly Hallows?

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We don't know.

It's repeatedly stated in the book The Tales of Beedle The Bard that Beedle's stories are an original creation of the author rather than a retelling of older stories (pace the Brothers Grimm).

Whether any of these stories, especially the Tale of the Three Brothers, had any inspiration that predates Beedle's book isn't known however it's noteworthy that there are no mentions of alternate versions of his stories other than those that derive directly from his book.

If his stories accurately reflect his opinions, he rather liked Muggles, whom he regarded as ignorant rather than malevolent; he mistrusted Dark Magic, and he believed that the worst excesses of wizardkind sprang from the all-too-human traits of cruelty, apathy, or arrogant misapplication of their own talents. The heroes and heroines who triumph in his stories are not those with the most powerful magic, but rather those who demonstrate the most kindness, common sense, and ingenuity.*

The Tales of Beedle The Bard - Foreword by JKR

and

A pro-Muggle story showing a Muggle-loving father as superior in magic to a Muggle-hating son? It is nothing short of amazing that any copies of the original version of this tale survived the flames to which they were so often consigned.

The Tales of Beedle The Bard - ALBUS DUMBLEDORE on “The Wizard and the Hopping Pot”

and

“The Warlock’s Hairy Heart,” however, does not appear to have been modified or much criticized in the hundreds of years since it was first written; the story as I eventually read it in the original runes was almost exactly that which my mother had told me.

The Tales of Beedle The Bard - ALBUS DUMBLEDORE on “The Warlock’s Hairy Heart”

and

Though some six centuries have elapsed since Beedle wrote this tale, and while we have devised innumerable ways of maintaining the illusion of our loved ones’ continuing presence

The Tales of Beedle The Bard - ALBUS DUMBLEDORE on “Babbitty Rabbitty and Her Cackling Stump”

and

The irony is that a curious legend has grown up around this story, which precisely contradicts the message of the original.

The Tales of Beedle The Bard - ALBUS DUMBLEDORE on “The Tale of the Three Brothers”

With regard to the final story in the book, given the close similarity between Beedle's story and the artifacts that the Peverell Brother are supposed to have created (some three hundred years before the book was written), it's feasible albeit unlikely, given their substantial age differences, that he'd actually met with one of the three brothers. Failing that, he may have simply been told the story by someone with a connection to one of the minor characters.

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    That doesn't mean he invented the stories, only that he wrote them down. – ibid Dec 30 '16 at 19:11
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    @ibid - There's not really another way to interpret "his stories accurately reflect his opinions" These are his stories, not other people's (with the exception of the "Three Brothers" which we're told is "legendary"). – Valorum Dec 30 '16 at 19:19
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    Two people will write down the same story very differently. We can usually determine the views of the writer by which stories he chooses to pass on, how he writes then, which qualities he focuses on, etc. – ibid Dec 30 '16 at 19:34
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    @BookStriker - Beedle wrote his book in the 1400s. Taking into account wizard life-expectancy, it's possible that he was born in the 1280s, met the three brothers in his early teens and wrote his book when he was in his low hundreds – Valorum Dec 31 '16 at 8:53
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    @BookStriker - Beedle flourished (fl.) in the 15th century but we don't know the exact date of publishing of his book, nor do we know his birth-date. The Peverells were definitely alive in 1214 and the eldest died in the 1290s. Beedle could, theoretically have written his book in 1401 and been born in the late 1200s. It's not likely, but it's possible. – Valorum Dec 31 '16 at 10:42
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In real life, did the Brothers Grimm actually write the fairy tales? No, they collected them. The Peverall Brothers story seems to have been elevated to the status of legend, with meeting Death. I would assume that Beedle also just collected the stories.

  • This assumption (with the exception of the story of the Three Brothers, which may be based on reality/an earlier story) is contradicted by JKR's and Dumbledore's writings in the Tales of Beedle the Bard. The majority appear to be original fiction by the author. – Valorum Dec 31 '16 at 1:13

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