So this last piece that we’re going to talk about is age. So we’ve covered the four D’s of distressed sellers. And so now, we’re going to go into a fifth one that it’s not commonly lumped in with the first ones, but it is a very important one. Because there is a tremendous amount of opportunity to be had in this area. We’re talking about age. And so the criteria for this one, it really is simple. The way that we hear the savvy real estate investors identify an age property is generally one that has been lived in but the same owner for 20 plus years, right. And so, you know, break is walk us through why that is.
So the typical mortgage on the property is held for about seven years. So typical homeowner lives in the house for about 14 years. One of the things that happens when you live in a property, you don’t actually update it, you live in it, there’s a big difference. And so, it you know, when you buy a property and you’ve lived in it for 20 plus years, what that typically means Is that there is a new style when it comes to Hey, the type of flooring. You know, one of the reasons you walk into some of these homes and they have the popcorn on the ceiling is because that used to be the style. And so now it is not now it’s something that everybody walks through, they want to get rid of it. Same thing with different types of flooring or paneling. You know, it used to be a thing where the houses had all this wood paneling on there, and now you go into it, people look at it, and there’s so generally it’s just, it’s several generations old, and it needs to be brought up to the time it needs to be it needs to be modernized. So you know, and what that does it you know, with that in mind, it opens itself up to a couple different ways. One, you know, finding homes that are a public record, right, so you can just go to the county and find out which homes have been occupied by the same owner for more than 20 years. But the two areas that we as real estate investors are looking at whether you’re a whole seeler whether you’re a rehabber, looking at one, it’s there’s a quick flip opportunity. So we always talk about it, but a home that has been lived in for this longest generally, well, cups, you’re not going to live in a dump for that long. So the updates and things that you need to make are generally more cosmetic, you know, because any type of major upgrade would be, you know, a h vac or roof, that’s going to be something that affects a person’s living conditions. So it’s generally taken care of fix those right away.
Absolutely. And so we’re talking high upside. And so the reason with that is because the amount of repairs that need to be made are minimal. And the offer that you’re able to make is that so you know, like what Rob touched on is the average mortgage lasts for about seven years. average person will live in a home for 14. And so generally these homes are paid off. Yeah, there’s if they’re not paid off, they’re really close to being paid off. So you’re making an offer, you’re making an all cash offer. For someone who’s going to be receiving all cash, they’re going to get almost all of your, your offering.
So that becomes very attractive because one of the things that this is usually a sign as somebody that’s ready to downsize, because you know, when you’re living in a house, the reason people live into house is to go ahead and accommodate their family. Well, one of the things that happens is that he may be living in a five bedroom, two bath or three bath house. Well, it’s great when you have three or four kids running around Well, when they go away to college, hopefully, or get their own lives or jobs or whatever, and we’re just leave with you. Yeah, they just get out hopefully just get up. Then you don’t need five bedrooms. And as you get older, one of the things that you understand is it’s like hey, I only need the amount of space that I really need. I don’t need three four or 5000 square feet. I need like 1000 or less. Cuz you don’t have extra hands to clean maintain, right? You know, generally what, especially when it comes to houses, If you’re not able to keep eyes on everything, something bad can happen, that’s when leaks, you know, can can fester. So, you know, downsizing moving on change of scenery.
You know, I am from the Great North in Wisconsin. And so what happens to people who have generally, as soon as the nest is empty, they move to a place like Florida. Yeah, you know, Dallas Phoenix, you know, they start to Snowbird and they want to leave get to an area where the climate is less intensive. So, you know, that’s where you’re going to end especially, that’s where the motivation with ease comes in. Mm hmm. And I mean, just to touch on high upside, yeah. These are generally homes that just need cosmetic repair. You know that the maintenance is really the issue for the homeowner. It’s not a situation where they’re in necessarily financial distress. In fact, they may actually be in a position where they can obtain some financial security. But what it is is like maintaining the house again, like if you have no kids Why do you want to go upstairs? So why do you need to stories unless you really just want it. A lot of times, this becomes a lifestyle choice for them to find something that’s a little easier to maintain as they get older and and be able to cash out of a property that did them good. And now can do somebody else. Good. Absolutely. So there you have it. So that is the five criteria of being you know, of a distressed seller and how to identify them. So we’ve talked about the four DS, and then we’ve touched on age. So now we’re going to talk about deploying those types of sellers. And actually, you know, putting that information to good use and going out and finding the properties. Next up we talk lead generation