How To Find Cheap Property For Sale

How To Find Cheap Property For Sale

November 21, 2019 100 By Luis Garrison


Kris Krohn here with Limitless TV and
today, we’re talking about how you find the good deals, the cheap real estate
that’s on sale right now. The deal of the decade comes along every single day. You
just got to be out there finding it, understand that we live in a very
organic real estate world. What that means is that people are only looking
when they’re ready to buy and most of that is not systematized but if you’re
looking on how to find the cheap deals, the bargains, the good deals that are for
sale out there, then what you need is a system and what I’m going to do in today’s
video, my friends, is I’m going to share with you a very simple system that you can
set up that will help you find the best bargains, the best cheap deals, the best
deals that are going to take care of you and land you winners in the real estate
game. So first of all, one of the things that you’re going to need is you’re
going to need to know how to do one mathematical calculation and it’s called
price per square foot. The price per square foot ultimately helps you to
determine whether there’s a good deal or not. In your area, you could even Google
your city or your county and say what’s my average price per square foot for
something that’s average priced in my area and it’s going to be a hundred a foot
or sixty a foot or a hundred and fifty a foot. The reason why that’s important is
because there’s only two numbers that I want you to focus on when you’re out
there on deal sites, real estate sites, talking to realtors, I want you to hone
in on price per square foot for a specific reason. To do that, you need to
know the square footage and the sales price of a home. Okay, so for you to
be able to do this, you’re going to need a simple calculator, right? I got one on my
smartphone, you probably do too and let’s say that I’m looking at a home that is a
hundred and fifty thousand dollars, I’m going to put in the price, $150,000
and then I’m going to hit this divide symbol right here and I’m
going to divide it by the square feet. If it’s 1,500 square feet then guess what I
get. I get a $100 a square foot. So you take the price of the home,
you divide it by the square feet and you get the price per square foot. You want
to know how to find really good deals? You just got to become familiar with
what the price per square foot is in your area. That’s really simple, look at
all the deal sites that are out there, you can talk to realtors that have
access to the MLS, you can look at the little real-estate book, you can go to
any of that, you can go to homie or any other for sale by owner sites that are
out there, anywhere where real estate is for sale, right? All you have to do is
type into Google search engine, “Homes for sale Provo, Utah” or the city of
wherever you live and what it’s going to do is it’s going to pull up listings and all
you I want you to do is, I want you to look for only three to four bedroom
homes and once you find a three to four bedroom home, I want you to take its
price, a hundred thousand divided by its square feet, twelve hundred and it’s
going to kick you out of price per square foot. Now the reason why I want you to
learn how to do this is because finding a really good deal, it’s easy to spot if
you understand this price per square foot. I’m going to start doing this right
now, I’m going to go online, I’m going to go look up a website that is selling
properties in my area, I’m going to start doing some math. Look what I just found
right here, this is a home that is for a $120,000. I’m going to
pop that into my calculator, okay. Then what I’m going to do is, I’m going to
divide it by the square feet which is $1,500, look at that, I’m $80
a foot. I do this again and again and again, this one’s 80 a foot, this one’s 82 a
foot, this one’s 84 foot, this is 79 a foot and then all of a sudden, I find a
home that is $64 a foot. Okay, one of these kids is not like the other
ones. This house is not like the other houses that are here which means you may
have struck gold. This is a very simple system that I use for finding smokin’
hot good deals. It doesn’t take a lot of time, if I’m ready to buy a house, I’m
going to go out and I’m just going to calculate. I might have to do a hundred
calculations which takes me all of eight minutes like no time at all here and I’m
looking for the anomaly that is really low. You’re going to notice some that are
really high but you’re quickly going to figure out what is the average and when
you get a low number, when you get a number that is 20% lower than what
you’ve been, let’s say they’re all 100 a foot then if you get something at 80 a
foot and you’re not finding anything else like that, that’s where you want to
take it to a realtor and say, do a CMA for this, do a comparable market analysis
what they’re going to do is, they’re going to find the closest homes that are most
like that one and compare the ones that have sold in the last six months and
they’ll say you’re right, everything that sold in that area is selling at 100 a
foot, this one’s 80 a foot, that’s going to equate to a roughly a 20% discount. 20%
on a $200,000 home is 40 grand, you just treasure hunted as a pirate and found
$40,000 and how simple was that? Friends, you can do this calculation. You
put in the price of the home, you divide it by the square feet, you’re going to get a
price per square foot. All you got to do is Google and find the websites that are
out there, go find a realtor to produce your CMA
and that’s how I find cheap cheap cheap
deals in fact, I have a team that does this for me in the nation’s hottest
markets around the country and they’re a research team and we dial in on the
market where the good deals are and then we just start looking through everything
that’s for sale but foreclosures the bank owns, the repos, everything and we’re
doing that calculation until we spot the winner. Friends, those are the ones that
we bid on and that’s how you can win in real estate
every single time. Where do you go from here? Grab that calculator, grab the
internet and I want to invite you right now to take the next couple of minutes
and go scope out just 10 properties and start getting a feel for price per
square foot in your deal because there’s a good chance you might actually land on
a deal without even knowing so you can find out how easy it really is to get
crushing it in real estate.