By Kristine Gentry, Ph.D.
We’ve all heard that the real estate industry is changing. Investors often wonder – “How can I find properties worth investing in?” With more and more competition in the marketplace, challenges in getting loans, and cautious homeowners staying put, it can feel like it is impossible to find property that you might be interested in purchasing for your real estate portfolio.
What new and experienced real estate investors are seeing in the market is a fundamental change that may last for the foreseeable future. Overall, the nation is experiencing a shortage in the amount of properties that are being put on the market, leading to a lack of leads. This is creating increased pricing on homes that are for sale and issues in trying to build and acquire a real estate portfolio.
Does This Mean Real Estate is a Bad Investment?
In short, the answer is no. Real estate is not a bad investment and has proven to be a very good investment over time. However, investors are probably changing their investment strategy and looking at markets that still have “room to grow.” In addition to looking to new markets, some investors are looking to expand their source of leads.
Housing Shortage Equals Inflated Prices
Most economists will tell you that the biggest drivers in the market are supply and demand. As you can imagine, decreased supply in the housing market means that pricing has skyrocketed, something that real estate investors simply cannot afford when they are looking for business opportunities. These historically high prices mean that people who are making less money have to spend more of the income that they do have on a home.
Surviving the Shortage as a Real Estate Investor through Probates
If you are interested in continuing to work in real estate, then you know something has to change. Real estate investors have a limited amount of options when facing a market like this. Some investors have simply moved on to other business opportunities, while others have succumbed to the increased prices, which have hurt their business and their balance sheets. But, there is a segment of real estate investors who have found a profitable way to deal with the challenges of the housing shortage by finding a new source of leads.
While many investors are only looking at the traditional segments of the market – single family, residential homes that are for sale by families who want to upgrade that are listed on the traditional MLS-style forums – there are other homes on the market that can be purchased at a significant discount. Properties owned as part of a probate are widely available and can be purchased for well less than comparable homes in the area. In fact, there are an estimated 100,000 probates entering the market each and every month throughout the United States.
Probate properties are those homes, apartments, multi-family homes and commercial sites that were previously owned by an individual who has passed. The local court then appoints an Executor to ensure that these homes and other properties are sold to take care of paying medical bills, funeral fees and other obligations.
Probates Provide Motivated Sellers
Once you start working in probates you will understand why Executors are motivated to sell their properties quickly and for a substantial discount. Each Executor is responsible to the court to ensure that the assets of the individual who has passed have been liquidated in order to meet financial obligations and provide an inheritance to the individuals left in the family.
Executors not only feel the pressure to sell because of the court, many also feel the need to sell quickly because of other pressures. While Executors can be a family attorney or an accountant, many times the Executor is a family member who has responsibilities of their own. They may even live out of state and making repeated trips to show a home or apartment building can be nothing short of challenging. Executors also understand that, in addition to time constraints, the home their family member owned may not be fully updated. In addition, most Executors have to split the profits of the home sale with other family members. All of these conditions provide the opportunity for homes and other properties in probate to be purchased for a fraction of the current market value.
Finding Probate Leads
Now that you understand the value of having access to probate properties in this challenging economy, you may be wondering how to get access to them. Many individuals who are starting a probate business decide that going to the local courthouse is the best way to look for opportunities in their area. This can take time, as you need to allow for travel to and from the courthouse as well as time evaluating filings to see if there are holdings within the probate appropriate for your business. As you can imagine, this can take away valuable time from your growing investment business, your family, and the job you currently hold.
There is a better way. By using a professional probate lead service you can have up-to-date information and leads delivered right to your inbox on a weekly basis. With no more trips to the courthouse, no time wasted looking at complex filings that are hard to understand, you will have more time to go out and evaluate properties and opportunities. Unlike traditional leads in the current real estate market which can be nearly impossible to find and create the environment for high pricing, there are literally thousands of options for probate purchases each and every day. And, as Baby Boomers grow older, these leads will only continue to grow.
Build a Vibrant Real Estate Investment Business with Probates
Having access to leads on a regular basis means that you will be able to find success in probate real estate investing. With time, patience and a carefully thought out business plan, you can be sure that having these leads will make an enormous difference in your ability to purchase homes and other properties at a favorable price. The key to success in probate is making sure you buy leads from a high-quality and trusted provider. Then, you must reach out to Probate Executors and continue to do so for a minimum of six months. This allows you time to truly work probates and to patiently await those Executors who do not want to sell immediately.
Probates also help you to diversify in that they are not limited to residential real estate. What you will find is that you may come across and Executor who has inherited apartment buildings, multi-family units, businesses, vacation homes, and even personal property, including antiques, artwork, and vehicles. The variety and opportunity with probates is endless because there is always a supply of leads available.
The Most Reliable Source
Are you looking for a reliable lead source for all of your probate investment needs? The experts at US Probate Leads offer the highest quality leads available on the market today. Our certified lead specialists visit nearly every courthouse in the United States, constantly evaluating new probate filings and making those available to our investors. In addition to our premium lead service, we also offer services that can keep you informed on the newest trends in the market. We can also work with you on your mailers to help you easily reach out to Executors. Contact our office today to learn more about our lead service, monthly newsletter, e-books, seminars, webinars and even our individualized mentoring program. Contact us today to speak to one of our friendly, knowledgeable customer service representatives.
Kristine Gentry, Ph.D.
VP of Innovation
US Probate Leads
Web Site: www.usprobateleads.com