Okay. Day 18.
We're talking about panning for gold today.
Now, originally I was going to talk about filtering and looking for discounts
but really what we're doing is the old school gold rush mentality,
where we're going to where we think the gold is and we're working hard
every day and we're trying to find that big gold nugget.
I don't know if you understand what gold panning is, but look it up
and you can understand why there was such big gold rushes all around the world
in the last couple of centuries and why
so many people went to them looking for riches.
You know, the modern day gold rush is in property and it's not over.
Now, if you are setting up your filters on realestate.co.nz or OneRoof or TradeMe
and just keeping an eye on the new listings,
what you're going to be doing is if you've got criteria that you've set,
maybe it's number of bedrooms, a suburb, its land size.
What you're going to get probably is when you first set up your filters, you're
going to get 500 to a thousand listings and it's going to be overwhelming.
Now, you might want
to give up right then thinking this is just too hard
but if you commit yourself to five to 10 minutes on each of those listings
and you catch yourself back up to current day,
then maybe you go through
a couple of months worth of listings on those certain filters.
But then there'll be a hard point where you reaches
you understand that market for those filters
and then what you're going to probably get
is you're going to get around 50 or so new listings each month,
maybe each week,
but you're
going to have to keep up with them because what you're really looking for
is you're looking for a property that's mispriced
because the way that you can make money in property, the easiest way
for basically anyone to be able to do it is to buy a property under value.
And if you can buy $1,000,000 property for $950,000, you just made $50,000.
So you've got to ask yourself every time you're doing anything property related,
if I'm trying to make $50,000 from buying really well
how much effort and work should I be putting in to make that $50,000?
Because it's not just going to magically happen,
but what I can tell you from helping thousands of people
with their own mortgages is there's a lot of people
that know how to buy properties at good discounts.
They have done the work and if you are not at that stage yet,
then you need to do the work.
So what is this going to look like?
You set up your filters, you
crank through the first 500 to a thousand, understand the market each month.
You keep up with the 50, 100
new listings that are coming on board and you start narrowing down your filters.
And then what you're probably going to get to is each day or maybe each week
there's five new listings and the filters that are important to you.
Going back to those filters, again, it's number of bedrooms, it's suburb,
it's, it's attributes of the property that interest you.
And you have to have done the work prior to understand what attributes are going
to be valuable.
Now to get this $50,000 to $100,000 discount on purchase,
what we're going to probably need to do is put in the grunt work
because those $50,000 to $100,000 discounts are not there
every single day in that filter pack that you're that you're looking at
it might take six months to
for that opportunity to come and for you to be the first one to jump on it.
So let's do the numbers if you spent an hour a day
say 8:30 at night to 9:30 at night
you could probably do other things at the same time.
But let's just say an hour a day, five days a week for six months.
And this is your education.
On learning how to filter and find good property deals.
Now, how are we going to get this $50,000 discount,
let's say after six months on the six month, the final day
are able to find that property, get it under contract and buy it.
And we made on paper $50,000 and it took six months of an hour
a day, five days a week sustained effort that makes you $400 an hour.
So if you're not currently making $400 an hour,
it's worth your effort, it's worth your time.
And even if you only made $25,000,
then it's still $200 an hour.
Again, if you're not making $200 an hour, this is sustained effort,
that's repeatable and it's a learned habit
that you will get easier and better at over time,
there's not
many ways that most people, especially that don't own their own businesses,
can make $50,000 extra in a year
with relatively low effort and good ease.
So what you probably need to do to have more chance
of success of getting this $50,000 discount on a property purchase
is to start a spreadsheet of the listings and tracking the sales prices.
So what you want to be doing is making an estimate of,
of the property's value based on your analysis in real time
and then tracking back after the sale to see how close you were
and to start like basically
stock picking on the property market
but tracking back retrospectively.
I know some investors that use virtual assistants
to do most of this grunt work for them and to help them identify properties
that are like that they should be making offers on
and the sustained effort is a hobby that pays.
So if you can bring yourself to enjoy this process of making money
that your hobby instead of watching Netflix or
going
bowling or something, you can actually have a lot of fun
when you're making money and
this is this is the modern day gold rush
property prices 2022, 2023 and beyond.
Now maybe they will go down and it is a buyer's market.
So you can be saying, OK, this property is worth 1 million on paper,
maybe I'm offering 900,000 and if nobody else is offering
seriously, then you actually can snag, you can nab that deal.
Now it might take two to five years before this is realistically worth
$1 million again, but you have just got yourself a 10% discount
and giving yourself every chance to make money through property.
If you skip all of this and you just end up buying things
as they are listed and you paying close to the the the listing price,
then it's really hard to build a property portfolio.
So that's why we're going to have this mentality
of searching for nuggets and it is a little bit more effort than
then just
buying what you see listed within a couple of weeks.
But the effort is worth it because these discounts are just the money is so big
so if you got any questions about filtering,
looking for properties, let us know in the comments below.