The “Can’t Fail” 3-Step Method For Finding Deeply Discounted Properties On-DemandJul 27, 2020
I catch unicorns all the time — and you can too.
In my world, they’re off-market, deeply discounted properties selling for pennies on the dollar.
And once I’ve snatched ‘em up, I pass them to cash buyers and take my cut (an average of $20K per exchange).
I’ve been uncovering these unicorns in real estate since 2015 - without any prior credibility, credentials, or experience.
And I’ve been in your shoes before: Confused about what to do and where to find them
Here’s the best part: You can be a total newbie and start closing deals at hyper-speed by finding discounted properties using my simple, 3-step methodology.
With this little “talent” that anyone can quickly pick up, you can grow a real estate revenue stream as big as you want without ever owning a home, stockpiling cash, or getting a license.
In fact, it’s hard to imagine anyone not having near-instant success following this simple system.
Here it is: My 3-step formula for finding wildly discounted homes that make closing lucrative deals second nature…
The Game-Changing Formula For Finding Deeply Discounted Properties
There are 3 things — and 3 things only — that must be considered to confirm a property can be had for way less than it’s worth.
- Equity. As long as the property value exceeds what’s owed, a deal could be ripe for the taking.
- Distress Signals. These are surefire signs that a property needs a new owner (whether or not the current owner wants to sell).
- Seller Motivation. These are little-known indicators that an owner’s practically begging to sell for dirt cheap.
If a property checks all 3 boxes, it’s a virtual guarantee you can get a deal that will leave cash buyers foaming at the mouth (and fill your pockets lightning-fast).
I can personally trace hundreds of thousands — if not millions — of dollars in “finder’s fees” back to properties that checked the boxes above (and my students can too).
Truth be told, even 2 checks can do the trick in many cases.
But we’ll come back to that in a minute…
For now, don’t worry if these terms are new or intimidating.
No magic, genius, or degree is required to get the gist and start finding these properties to profit in.
I’ll quickly break down each step in just a few short paragraphs...
Step 1: Calculate the Equity
What is equity?
The gap between what the owner owes on the home and what the property’s worth.
If you can do simple math, you can confirm the property checks this box.
Property Value - Remaining Payments = Equity
The higher the equity, the better potential for your future payday.
And if there’s no equity to be had (or the owner’s in the hole), run and never look back.
Assuming you’re good here, let’s move on to step 2...
Step 2: Make Notes of Distress Signals
Armed with the expertise to spot distress signals, you can hunt down deals at hyper-speed at an alarmingly high success rate
Distress signals are simply telltale signs indicating a property is ready to sell for cheap.
Whether the owner has admitted as much is up for debate, but we’ll get there next.
These signs are like ammunition in your arsenal to command a killer discount (and even help to convince a stubborn owner they should sell to you and no one else).
Miss these and you could be stuck with a deal nobody wants or self-sabotaging your own potential profits.
Remember, we’re not looking for pristine properties plucked straight from vision boards.
We’re searching for rare finds you can get for a steal, like a diamond in the rough begging for some polish or a hidden gem buried amongst the mess at a secondhand store.
Most Common Distress Signals Every Deal Finder Should Look For:
- Boarded up windows
- Curling shingles
- Lackadaisical landscaping
- Parked cars on the lawn
- Oil marks and gas spills
- Overgrown weeds and vegetation
Though it seems counterintuitive, when you see these signs, get excited…
When these signals pop up on your radar, you know you can get a discount.
Now let’s double-click on the owner for a second... as he or she can make or break the deal…
Step 3: Uncover Seller Motivation & Use It To Your Advantage
When a property is firing off distress signals, its owner probably is too.
As a final “pulse check” when deal hunting, uncover some seller motivation.
The more motivated the owner is, the better deal you can command. And the better shot you have at side-stepping stingy owners that will never sell at your price.
Common signs of seller motivation are often unsettling, life-changing situations that need to be dealt with on a tight timeline…
And frankly, owners in these situations need a savior like you to make magic happen (whether they know it or not).
Little-Known Signs of Seller Motivation:
- Behind on taxes
- Job transfer or relocation
- Selling as-is
- Code violations
- Missed mortgage payment(s)
Let me be crystal clear: Deal hunting is not preying on the weak.
That’s a common misconception that couldn’t be further from the truth.
Just the opposite, in fact.
You’re helping the property owner survive a remarkably stressful situation by coming in and getting the home off their hands when they don’t have the time, money, nor patience to deal with traditional real estate methods.
You, my friend, are the speedy solution they so desperately need.
Best part: With them pining to close a deal at record-speed, you can get said deal to a cash buyer just as quick. Ultimately, getting your payout as fast as humanly possible.
How To Find Discounted Homes On-Demand
In case you're one of those people who just scroll to the end, here's the scoop:
There’s only 3 things you need to confirm to consistently track down deeply discounted properties in any and every market:
- Calculate the equity. The larger the number, the better.
- Recognize the property’s distress signals. And use them as ammunition.
- Respond to the owner’s cries for help. Offer them a quick-close and they’ll play ball.
How To Make A Profit On Discounted Properties
The best deals have 3 common threads: High equity, a property in need of TLC, and an owner who needs to get out ASAP.
In this “perfect storm”, the owner doesn’t have the time, money, nor patience to fix up the house, get it market-ready, wait around for an offer, and keep footing the bills during a traditional 30-45 day close (which would also require everything to go as smoothly as possible).
As a deal finder, you can take care of all that (and then some) without any expertise, credentials, or experience.
You find the deeply discounted property, hand it off to a cash buyer (who is literally begging for this kind of deal), and claim your “finder’s fee” at a breakneck pace.
For the record, my students average about $10K per deal...
That means you can make well over 6 figures a year — without any training, experience, or prerequisites — just by finding 1 deeply discounted property a month.
And if you hop in the Real Estate Freedom Formula, you can transform this little “skill” into a full-fledged real estate empire following my step-by-step business plan.
The Real Estate Freedom Formula makes finding deeply discounted properties and closing deals fast, simple, and nearly impossible to mess up (even if you’re a total newbie learning as you go).
Heck, there’s likely some unicorns in your backyard right now just waiting to be snatched up.
Happy deal hunting!