Stop Losing Money On Real Estate Deals!

”Here Are A Number Of Ways To Find ‘The Deal’ That You Have Always Been Looking For!”

By Van Sturgeon

Real Estate Investor

“The money is made on the deal, right?” 

Read any real estate book or watch any Youtube video on real estate investing, and they all say the same thing. It makes a lot of sense. You make your money when you buy a property for the right price. 

You pay too much and it’s going to be really difficult for you to make any money on the deal. How long is it going to take for you to save up the $10,000 that you overpaid for that real estate property?

How about if you over spent by $30,000?

Yikes...That would hurt quite a bit and take a long time to recover.

Buying for the right price is the single largest factor that will determine your success in real estate investing. You need to buy property for the lowest possible price that is well below market value.  

We are all looking for deals like that so where are you looking to find that great deal?

“Oh sir...I spend hours and hours on MLS and I am searching for that great deal!”

How is that working out for you?

Well...I have learned that you will never find a great deal on MLS, since it’s the place where sellers are looking for fair market value for their property. If you do find something that seems undervalued, it probably is because the property is in disrepair, and needs a lot of work.

Beat up properties shouldn’t persuade you from purchasing them, as this is where you can make some real money. Many people on MLS don’t want that “Bruised and Reduced Special”, and they would rather find a property that doesn’t need much work. 

So...there are opportunities on MLS, if you scan thousands of properties until you find that beat up junker. These are properties that need a new roof, a new kitchen, a new bathroom. A lot of new stuff that you have to be careful on calculating the cost of the renovation, as that “great deal” could turn into a “financial nightmare”.

Even finding these opportunities on MLS is pretty difficult, as no matter how you twist and turn this thing, you will always be in competition from someone out there in cyberspace and the internet, who wants the deal more than you.

All you need is one other person who wants the same deal and then the price jumps up sky high. So high that the margins become so slim that you are debating whether it is worthwhile to take the chance on a major renovation. No wrong calculation or unexpected expense and you will be underwater on the deal.

There must be a better way, kids. 

Trust me, I have found it.

I have been a real estate investor for over 30 years and I look at deals everyday. All of the deals that I look at don’t come from MLS. In fact, I haven’t looked for a deal on MLS in a very, very long time.

I own over a thousand rental properties across North America and I can find great deals wherever and whenever I want.

So...What makes me so special?

Well...there are five ways to find off-market real estate deals. These are :

1.Pocket Listings

These are real estate deals that come to me from real estate agents who I have built up relationships over the years. They know I am a serious buyer, and I will quickly close on a property. The advantage that I give these real estate agents is that they can collect their commission on both, the buy and the sell. They know that if they put a smoking deal on MLS, that they will probably have to split the commission on the transaction. If they come to me, they know that they will get the full commission on the deal and I will close the transaction quickly.

2.Craigslist/Kijijij

You would be surprised at how many sellers hate real estate agents and the commissions that they charge. Every once and awhile, you will find a great deal on a property through a private listing on Craigslist and Kijiji. Often, a lot of real estate investors and purchasers don’t bother looking at these online classified ads because it requires a lot of work and a lot of phone calls. Don’t be lazy and do your research on these websites. You will find smoking deals...trust me!

3.Contact Rental Properties

We want to avoid the property managers, and we are looking for tired landlords who want to get out of the business. Find them and call them up. Don’t be shy. They won’t bite you. Tell them exactly what you are looking for and see if they are interested in selling their property. You will be surprised at what you will discover, as I have contacted owners who tell me that they are not interested in selling, call me up a few months later, wanting to make a deal. Try it out...you’ve got nothing to lose!

4.Eviction Court Listings

Self explanatory. We want real estate owners who are disgusted with the process, and have a “bad taste” in their mouths because of a bad experience. Reach out to them and have a candid conversation about their property. There are always moments where you can be at the right place, at the right time!

5.“Driving for Dollars”

This is the best approach and it seems to never fail. Identify the area where you want to buy a property, and do your research. Drive around in that area and look for signs that a property needs major renovation or it looks like it has been abandoned. Many times, these are properties that have absentee owners or owners that have fallen on hard financial timers. Make them a fair offer that allows them to leave their property with dignity and it allows you to make a good profit.

That’s it!

Those are the places and maneuvers that I have used to acquire properties at great prices over the last 30 years. I can assure you that if you put in the time and effort, that you will be able to succeed just like I have.

For more information on house renovations and real estate investing, visit www.vansturgeon.com to help you in your real estate investment journey.