Do you like to jump online now and then to search for great property deals?
While fun, it’s not particularly productive when you consider this week’s Steve-ism (#9), which is:
“The best deals are made, not bought.”
When you think about it, by the time a property has been listed for sale on the mainstream property websites, it’s already been ‘picked over’ by the professionals who are on the real estate agent’s hot lists and who were notified about the listing days or even weeks beforehand.
Furthermore, the ‘market’ of buyers looking to snaffle a great deal outside normal work hours with minimal effort is massive since the barrier to entry is so low – all you need today is a computer with decent internet access.
What I share in this video changed the way I think about real estate. Will it do the same for you?
“The best deals are made, not bought” means that, instead of looking to buy great deals, clever investors look to make great deals by purchasing properties with inefficiencies (i.e. problems) they have the time, skill, and risk tolerance to solve. Alternatively, you may be able to buy a great deal if you’ve worked hard to create a network of agents who contact you first to let you know about silent listings and properties that need to be sold in a hurry.
The takeaway is this – you’ll make more money squeezing your own oranges than you will by buying orange juice. This means when searching for deals, look for deals with inefficiencies that you know how to overcome (i.e. a bad deal you can make good), rather than buying deals where the financial juice has already been squeezed out of them.
How has this Steve-ism got you thinking? Leave your reply below, or else post a comment or question, and I’ll do my best to reply.
– Steve McKnight
Just another thought and a practical tip…
If you want to get on databases and see information about properties before they’re published to the general public then all you need to do is call up and ask to be added to the list.
I regularly get 5+ emails a day as emails blasts from various databases that I am on.
Regards,
– Steve
Thanks for the info Steve. Very helpful as usual.
Cheers,
Kristine
Thanks Kristine.
That is a great lesson Steve and with so many kind of REAs, it is good to learn how to deal with them to find the right agents for what we need to achieve.
Also, I notice that in some areas they are more friendly and happy to help.
Thanks
Great insight Steve,
Sorry but when you say call up and ask to be added to the list, who are you referring to calling up? Various REA’s?
Thanks for the great info!
Regards,
Chris
Yes Chris. Each real estate agency will have their own database of buyers
– Steve
Good job Steve!
As per usual it is about managing your time better and leveraging off the skills and expertise of others.
Cheers
Hi Richard.
Just picking up on this point…
Most people know about OPM – other people’s money, but do you know about OPT and OPK.
OPT is other people’s time and OPK is other people’s knowledge.
So collectively the three forms of leverage are time, skill and money.
– Steve
Hi Steve,
Brilliant extensions of OPT. Thanks!
Cheers
Excellent Steve-ism thanks.
I’ve been swimming around with the other 80%
Thanks Steve…this is valuable information…..i am thinking of the condo in FM….because of your education I ‘created’ a great deal from a rental sign hanging in a window….Bless!
Yes, you did very well there Lisa. I congratulate you on your resolve. I recall I did not feel as confident as you did, but you stuck to your strategy and did well. You are an inspiration to many Lisa, me included.
– Steve
Thanks Steve, your kind words are much appreciated…although my decision was based on years of education and learning from you and i just literally put it all together……the research for the purchase of this property started in November prior to the trip to Fort Myers in Feb, the timing of the dollar, knowing the market, the exit strategy and sticking to my guns was all because of the knowledge i gained from you. It was a perfect deal in many respects. Gratitude for You xx
Great stuff Steve. I love the quote ‘you’ll make more money squeezing your own oranges…’. This applies to so many areas of life. Really puts the onus on the investor. Leverage is very important however it is vital that we do not lose focus on the reality that our portfolio and/or our wealth is not somebody else’s responsibility. Leverage is a tool, not an excuse to do less.
Simple and effective tip. Makes sense.
What a simple yet very effective trip. I have read your book and continue to educate myself with your wisdom. Great job and a big thank you.
Sorry meant tip not trip!
Thanks Steve. I have found being pro-active and asking for an IM, even if not in a position to purchase, has been useful.
1. You step into the process and start talking to agents (not a lot but in areas that interest you with regard to criteria),
2. It then also opens up the email list rather than searching.
3. And finally, as those properties come in I have got better at weighing what’s an interesting property vs “move on fairly quickly”…..
In time I’m sure this serve me well.
Thanks the education!
Well said Andy.