How to make INSTANT PROFIT with Real Estate

what’s up you guys it’s Graham here so I understand this sounds like a very intense claim to say that you can make money immediately in real estate especially when on this channel I preach investing in real estate is very long-term plan but there is a saying out there that goes something like this you make your money when you buy not necessarily when you sell and there is a lot of truth to this and when it comes to this how much profit you make ultimately comes down to how much you bought the property for and if you overpaid for the property that obviously then means less money in your pocket and I’ve used that sort of thinking every single time I bought a property for instance last year when I bought a duplex I ended up making 85 that was a terrible snap $85,000 the second I could snap on this finger the second I bought at 85 grand in equity and this year I came ahead about $50,000 the moment I closed on this year’s duplex so in this video I’m gonna be sharing my exact strategies to scoring the best deal and how you can make instant money that was a better snap when it comes to real estate and these strategies are gonna work whether you’re an investor looking to make a profit or you’re just someone looking to buy a home to live in either way it doesn’t hurt to make a little extra money and also it doesn’t hurt to smash that like button if you haven’t already but really quick I just want to give a huge thank you and shout-out to our sponsor today skill share skill shares an online learning community with thousands of classes on business finance real estate management and just about any other entrepreneurial topic you can think of and with Premium Membership you’ll get unlimited access to high-quality classes from experts working in their field so you can continue improving your skills unlock new opportunities and do the work you like the most there’s also hundreds of classes available for anyone looking to expand their knowledge in the real estate industry it’s also pretty affordable with an annual subscription of less than $10 a month that’s that’s basically less than the cost of getting avocado toasts like once a month and that also means it costs less than getting to venti caramel iced macchiatos from Starbucks once a month so if you guys are interested in signing up make sure to click the link in the description to receive a free two month trial subscription to Skillshare and if you’re not totally satisfied with it don’t worry at all just cancel before the two months is up and you won’t have to pay a single penny for trying it out so definitely go on Skillshare check them out see if you’re interested feel free to sign up and with that said let’s get into the video so when it comes to making instant money in real estate here’s what I mean it means that you can buy a property for less than what it’s worth by knowing exactly what to look for for example if a home is worth five hundred thousand dollars but you go and buy it for three hundred and eighty thousand dollars well that means that you just made an instant one hundred and twenty thousand dollars in equity the moment you purchased the property however when it comes to actually doing this very few people know what to look for and because of that that’s why I’m making the video and trust me when I say this that you can find these deals in any single market out there whether it’s a buyer’s market or a seller’s market there’s always going to be market inefficiencies that you could spot and locate and then profit from and without further ado these are the best opportunities that you can find the first thing is to look at homes that have been listed on the market for over a hundred days now this might seem a little bit counterintuitive because the deal has been listed for months and like everyone has seen it already but because it’s counterintuitive you could start using this to your advantage now remember that in order to get different results than most you need to take different actions and this is definitely one of them now as a real estate agent this is something I see happen way too often if the seller wants to sell their home they’re gonna interview with three four or five different real estate agents but many times they end up listing with the agent who simply tells them the highest price possible just to try to get the listing and naturally what ends up happening is that many times the seller will just go with the agent who tells them the highest price because the seller thinks they know something that every other agent doesn’t and they can get me more money now obviously what ends up happening is that the home is listed but it doesn’t get any activity or any offers in the first month and then the listing agent goes to the seller and says listen we need to drop the price to try to attract a buyer the seller then reduces the price to where it should have been all along but because the property has now been listed for over a month they’ve lost all that initial momentum that if they would have gotten had they just listed at that price at the very beginning most buyers by that point had the mentality that oh if it was already listed there must be something wrong with it it must not be that good of a deal so let’s not even bother looking at it and Stan let’s look at the brand-new listing over here that just listed like four hours ago so because of that buyer mentality maybe another month or two goes by the property still hasn’t sold and the listing agent goes back and says listen we don’t have any activity we don’t have any offers we have to drop the price a little bit more because the market obviously says that your home isn’t worth what we’re listed at and then what happens they end up dropping the price again and now all of a sudden it’s listed below with the home is worth but because the home has now been listed for a few months buyers have that same mentality that there must be something wrong with it it must not be that good of a deal it’s been listed for over a hundred days now even though in reality if they listed at that price in the very beginning they would have had multiple offers and it would have sold over asking price now from my experience as both a real estate agent in real estate investor when a home has been listed for over a hundred days it has a very hard time selling the mindset for 99% of the buyers out there is that there must be something wrong with it because it’s been listed for so long wrong now as a home buyer or real estate investor it’s your responsibility to understand the market dynamic and market conditions and understand what a property is really worth beyond how many days it’s been listed on the market and typically the sellers of these homes that have been listed for over a hundred days aren’t not always but many times very desperate to sell so my recommendation here is to check all homes that have been listed for over a hundred days and see if you might be able to spot something that’s under market value or just feel free to write a much lower offer on a property that’s been listed for over a hundred days and there’s a small chance the seller is going to be very desperate to sell and also the agent on that property is going to be very motivated to help push your offer through because they’ve been working at it for months and they want to get paid and doing that is just a tremendous value to buy a property under market value that many other people simply just don’t even look at now the second one is the one I take advantage of the most when it comes to buying real estate for myself and that’s buying listings that have very very bad pictures listed online now one of the reasons why I was able to buy last year’s duplex for $85,000 below market value is because they only used one picture on the listing and the picture that they used was a picture taken from a cell phone of a computer screen of a picture taken with a cell phone of Google Streetview and I see this happening all the time especially when it comes to investment properties many agents are just so lazy that all they do is take a screenshot of Google Street View and that’s the only make sure they put on the listing it’s insane this makes absolutely no sense but they do it all the time I’ve seen so many listings out there that only have one picture available of the outside of the property and guess what most buyers think their mentality is there’s only one picture it must suck on the inside let’s not even take a look at it and the reality is that probably nine out of ten buyers out there are very visual they want to see every single room from every single angle and if they don’t have all the facts from the very beginning they don’t even want to waste their time or even bother looking at it but here’s the thing though pictures of a property don’t dictate what the home is worth the home is always gonna be worth exactly what it’s worth regardless of how good or bad the pictures are but in terms of what you can actually buy it for the less competition you have when competing with other buyers that means the more leverage you have in the more leverage that you have means that the lower the price you can buy the property for now most of the deals that I bought for myself were bought because of very bad pictures that other buyers just wouldn’t even look at and because of that I have much less competition and I could be much more aggressive when it comes to writing a lower offer and getting a better price so this means that in addition to focusing on listings that have been listed on the market for over a hundred days focus also on listings with no pictures one picture or very bad pictures and when it comes to doing this evaluate the worth of the property by driving by or seeing it in person looking at the square footage the lot size the bedrooms the bathrooms the floor plan everything else that goes along to it that actually gives a value to a property not just really bad iPhone pictures many times I promise you you will find the perfect home that’s hidden behind very bad photography the third thing you want to look at is look at properties that have very information listed about them and like I mentioned in the last few examples this has more to do with the seller using a very bad ineffective real estate agent than it does on the actual properties real value for example here’s one little trick I’ve done that many people don’t seem to realize but this is what it is many real estate agents who don’t know the square footage of the property and who don’t want to get it measured because they’re too lazy simply leave the square footage blank and when they do that it shows up as zero why they do this instead of just looking on the public record or look at the blueprints of the home is just beyond me but it happens all the time but here’s what ends up happening for 99% of the buyers out there when they’re searching for a home online they put in a minimum square footage just think about this for you as well the last time you looked at a home chances are you put in a minimum square footage this means that all the homes that were listed as zero square footage don’t even show up the only way these listings show up to any buyers is if the buyer does not put in a minimum square footage or they put zero as the minimum and that’s basically when the properties show up online which let’s be real most buyers out there don’t put zero as the minimum square footage I’ve also seen listings out there that somehow don’t put the correct bedrooms or bathrooms they don’t put the correct lot size they don’t put any description in the property and they combine that with using really bad or even no photography it’s absolutely crazy how bad some real estate agents are and again what most buyers usually end up doing is just passing on that they don’t even want to see it even though beyond all that it could be the best home in the world so I highly recommend always look at these properties these are your opportunities and we’ll repeat that these are the ways for you to make money so anytime you see bad pictures anytime you see no description anytime you see zero square footage anytime you see anything wrong with the listing I want you to start thinking to yourself this means money just think about that for a second there is no way in hell that that listing is going to sell for its full value when they don’t use any good pictures no description and zero square footage compared to that exact same listing where they would use great pictures put in the square footage put in the description all of those things really end up boosting the property’s value if you put those two exact listings together side by side one did it wrong one did it right I promise you there would probably be about a 15% difference in selling price between the two this means that there is your opportunity to buy a property for 15% less than had they just done it the right way from the very beginning and that is a great way to make instant money and buy a property that’s undervalued the fourth one is a big one that many people also pass up and that is to buy a very ugly looking home look for properties that have old kitchens maybe they have a disgusting old bathroom maybe they have dirty carpet peeling paint bad landscape maybe it just doesn’t look that good all of these things can be fixed extremely easily very inexpensively and very quickly now even though yes this is going to cost you money and time to fix up usually doing this is the best ROI you can ever get when it comes to real estate is simply fixing it up and remodeling it from what I’ve seen probably about three out of four buyers will pass up on a home that requires any amount of work whatsoever beyond just painting why this is a big deal is beyond me it’s very easy to fix but that’s the reality and you need to understand that and then use that to your advantage but again this just means more money for you if you’re willing to overlook these things and do some of the work yourself and for my experience whatever you spend remodeling a property should at least double your money in terms of equity for instance if you spent twenty thousand dollars remodeling a kitchen ideally that would bring you back about forty thousand dollars worth of equity now of course sometimes it’s gonna be a little bit less sometimes it might be a little bit more but on average that’s about what I look for if I spend money in a property I at least just want to double my investment and this is something that I’ve done with every single property I’ve ever bought for example the first property that I ever bought I bought it for about 20% below market value by using these strategies I’ve mentioned here they ended up listing the wrong square footage and using only one really bad cell phone picture of the outside of the home now it turns out the reason they didn’t show the interior of the property is because the seller was a drug-addicted hoarder so I mean that kind of ended up making sense that they wouldn’t take any pictures of that but you know it doesn’t matter to me of course when I bought the property it smelled legitimately like had poop and you could barely breathe but with a dumpster a few workers and 12 grand later the house was spic and span as good as new and looked amazing and that twelve thousand dollars that I spent renovating and fixing up that property was easily worth thirty thousand dollars in extra equity and in conjunction with that because I bought the property for 20% below what it was actually worth I pretty much was able to double my money and my investment on that property within about a month and also for the last duplex I bought I spent about $80,000 and two months fixing it up and after that when I was done it was worth about a hundred and fifty thousand dollars more and for every one it just gets a little bit triggered now it’s like but grand that’s that’s not really money in it that this equity will you know guess what I did a cash out refinance on this deal earlier this year I pulled out a hundred and fifty grand seems like pretty real money to me so anyway the moral of this story is just be okay with doing some of the cosmetic repairs because whatever money you spend on the property is usually a very good investment now when I say this of course it’s very important to keep it minor and really keep it cosmetic as soon as you get into tearing down structures rearranging floor plans adding square footage or doing anything major usually becomes a lot more time intensive a lot more capital intensive and you really got to understand exactly what you’re doing when it comes to me and most other people out there I really recommend just keeping it very simple very cosmetic something that you can ideally get done in less than two months ideally you want to be under 45 days where the rest of the home is just amazing it’s just cosmetically it looks a little yeah that’s really the best deals to go after in terms of the amount of money you spend versus the amount of time you spend making money and this is also a great way to buy a property for less than what it would cost you to buy that same property with all the work already done and when it comes to doing this the most important thing to remember is this is that you can basically make your money twice now here’s what I mean first of all you can find one of those deals and buy it under market value by using some of the strategies I described second you can make more money on top of that by doing a lot of the remodeling yourself this is really just about double dipping on your profit that you make profit immediately when you buy it and also when you fix it up a little bonus tip here for everyone else you stuck around is one other thing you can do is look at listings that have expired maybe listings that were listed for like six months they didn’t sell they took them off the market they haven’t sold yet they haven’t relisted yet oftentimes these sellers still want to sell they’re just very frustrated about the selling process they don’t want to deal with it many sellers is just like you know what I’ll try again next year it’s not a good time I don’t want to have to go through this all over again so they take the property off even though there’s still realistic sellers now what you can do to make money from this is approach these sellers and then make them an offer that’s a little bit lower simply for the convenience of not having to go back on the market again and relist and deal with all the showings and everything else that comes with that they will be selling their home off market and usually because of that you can get a slight discount and with that said that’s pretty much all there is to it it’s really about understanding your local market understanding market inefficiencies and then understanding how to spot them and by using those five techniques that I just mentioned I promise you’ll be able to find a great property and buy it less than what it’s worth and make instant money by doing so and yes this takes a lot of time to do this it’s definitely a lot of work to do this it’s definitely a numbers game you will go through a lot of properties that just don’t work whatsoever but if you stick with it and you find the one that does work I promise it’s 100% worth it so with that said you guys thank you so much for watching I really appreciate it if you watch it to the very end you haven’t already smashed that like button make sure to smash that like button smash that subscribe button smash that notification bell also feel free to add me on snapchat Instagram my poster pretty much daily so if you want to be a part of it there feel free to add me there I also have a private Facebook group in the description for anyone who’s interested real estate goes to investing real estate agent seeing real estate wholesaling mentoring real estate and any one who wants that link in the description thank you again for watching and until next time