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.