Some of the most significant growth and opportunity in real estate in the years ahead could be in the probate property space.
Savvy investors, businesses, and entrepreneurs are constantly looking for what is next. They are looking for new niches which may offer less competition and more profitable opportunities, as well as hunting for the best growth prospects, and ways they can ensure their relevance and ability to thrive in the future. Looking at emerging trends and the data, inherited and probate properties could be one of the largest and fastest growing niches developing in real estate.
Boomers
Right now, boomers are one of the most active groups. They have a lifetime of wealth building and income production behind them. Some are still trying to catch up for retirement by making more investments now. Others are downsizing, or are moving to better locations for weather, healthcare, and lifestyle. This has created a substantial boom in urban development, manufactured home communities, and assisted living facilities for seniors.
Around 75 million baby boomers are expected to have moved into retirement in the next 15 years. That’s around 5 million each year (as much as all homes sold in a typically healthy year), or around 10,000 each day.
What’s Next?
So, what is the next trend after this massive retirement migration? As grim as some may find it, it is passing on, and America has declined in one recent global retirement index. Despite all of our schools and healthcare institutions, and technology, we don’t have the longest life expectancy on the planet.
Around 60% of Americans are homeowners. They may leave behind at least one property per household in their estates. Some will leave second and vacation homes, and a portfolio of investment properties as well. It is set to be a massive exchange of property.
Inherited & Probate Properties
Some of these tens of millions of homes will be inherited. Some will be passed on through trusts, gifted early, or liquidated in advance of going into an ALF or hospice. Many others will end up in the probate process as things are figured out. Few have their paperwork done right. If wills are not found, or they are contested, courts and lawyers have to figure out who should get the property, how much it is worth, or how to liquidate it.
All of these scenarios present a big opportunity to step up and help and serve others. Good real estate investors and professionals are needed help the estate, community, and heirs. Despite their benefactor’s original visions, many heirs can’t or won’t want to keep these properties. They will be aged and need a lot of work. They may no longer be in the good part of town. They may be too far away, or require a lot of property management, or just have emotions tied to them that heirs would rather distance themselves from. Many properties could be in aged restricted over 55 communities which heirs can’t live in or continue to own.
This is part of an even larger multi-trillion dollar wealth transfer, in which the recipients will need help buying and investing themselves. This group may simultaneously become motivated sellers, and buyers and investors, and very well capitalized ones at that.
The key to participating in this activity is to learn the probate process and to become a specialist in it. It can be an emotional and stressful time for those involved. They, and their attorneys need to find qualified help, who can get the job done, and act with tact when making contacting and negotiating in these situations.
Interested in this real estate niche? The REWW Academy launched a Probate Specialist Tactical Training & Certification program to help. Check it out…
