Working with probate properties in real estate investing is currently one of the biggest hidden gems available. This topic is critical to understand because many people do not do their research and miss big opportunities right at their fingertips. It's common for people to become paralyzed and not move forward because they don't have clarity on the information. In fact, some people even say probate properties are an overwhelming pain to deal with, and you should focus your energies elsewhere. We're going to uncover why this argument just isn't correct. These kinds of properties can be extremely profitable similar to the foreclosure auction processes if you understand what's involved and how to position yourself.
Probate properties are incredibly appealing due to many factors. These types of properties are going to be coming available at an exponential rate over the next number of years. The reason for this is the population has aged, and there is very high percentage of people entering their 70s. There have been many studies that show that we are living a lot longer now, but the statistics still prove most people do not live to 80. This generation is called the Baby Boomers, and they've had a significant amount of money. Not many people in this situation are upside down and need to short sale their homes. Many of these people have also invested heavily in their homes and actually drove the economy for many years.
Now for the second piece of the equation, you'll want to understand. The children of the Baby Boomers are between the ages of approximately 40 to 50 years old. The kids of the boomers are very busy and do not have the time or the patience to drag out processes costing them money. This generation has worked very long hours and has a good understanding of opportunity cost. When a property is passed down to them from a relative who has died, the vast majority want to move the real estate assets along as quickly as possible.
It’s true there are some details involved in the probate process that can slow things down. For example, if creditors are owed money, they will be included in the process as well. They will even be paid out before the heirs. The longer this process goes on, the less money the heirs will receive. For this reason, most people are motivated to expedite the process and have a resolution as quickly as possible. Many people now understand if they prolong things unnecessarily it's not in their best interest. It's very common to have Real Estate Investors on speed dial as a result.
Having a good eye for opportunity is essential and even better is having the ability to position yourself well to take advantage. The vast majority of people watch opportunities pass by regularly. Many Real Estate Investors get bogged down in the day-to-day details and find themselves spinning their tires. Building on a strong Client List now will be worth its weight in gold over the next number of years. Even better is the fact that people between the ages of 40 and 50 are easier to reach than ever before. This particular age group grew up understanding the importance of productivity. Many of these people understand the internet and are accessing online networking platforms every day as a part of their occupation.
So to conclude, the math speaks for itself and shows baby boomers are entering their 70s and won't be with us forever. A lot of homes are going to be going through the probate process over the next number of years. Understanding the opportunity and positioning yourself well will pay off immensely. Building a client list now around busy professionals between the ages of 40 and 50 is a great idea because they will call you when their parents pass. You can certainly be a big help to these people while they transition through this tough time.