Have you noticed how stores are constantly out of a ton of random items all the time?
This reality really hit home the other day.
My 21 year old daughter, Christina, is trying to purchase her very first car but she has had no luck because demand is super high and supply is at an all time low right now.
Twenty years ago, before I got into real estate investing, I spent some time in car sales so I know a thing or two about what’s going on.
There’s a computer chip that every modern car needs in order to run. The chip tells the computer everything it needs to know in order to make the car operate.
The problem is the chips are only made in China and there’s currently a huge chip shortage plaguing the auto industry. In fact, this shortage is expected to cost automakers more than $210 billion in sales.
Because of this shortage there are very few new cars on the lot which means demand (and prices) for used cars has skyrocketed.
Just like the auto industry, the housing market is still experiencing a shortage of real estate and therefore the prices continue to skyrocket.
Those simple lessons you and I learned in high school economics class are playing out right before our eyes. It’s as simple as supply and demand.
And that is the key word….demand.
No matter what life throws at us, there will always be an economy and there is always a demand for services, and products.
We have both a product and service to offer to our real estate market. You offer the service of bringing a level of expertise, trust, and comfort to an inherited property owner as you walk with them through the probate process.
You also provide a product (a house) that is in low supply but in high demand in today’s market. According to realtor.com, buyers are taking a break from the housing market because there is just simply no inventory.
But what they don’t know is that there is a ton of inventory sitting in the probate court house. It is estimated that over 3.2 million new probate cases are opened every year and that number is increasing year after year.
With the backlog of probate already sitting in the court, there is an estimated 5.9 million estates being probated at any given time. And on top of that, at least 90% of all probate cases involve the liquidation of real estate which puts you in the path of supply holder if you create a business that is tailored around this industry.
I’m getting ready to put together a coaching group for real estate investors who want to tap into this secret source of housing.
Committed to your success,
Ernie “My Daughter Needs A New Car” Vargas
The Probate Fox
Home of the REI Leadership Academy
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