In today’s episode learn how to find off market properties at a deep discount! Find out what “off market” and “deep discount” actually mean, how to find people who are open to selling a property at a discount, and why you should be a problem solver in order to get a deep discount.
What You Will Learn About How to Find Off Market Properties at a Deep Discount:
- What “off market” and “deep discount” actually mean
- How to find off market properties
- Why you should never negotiate on the seller’s behalf when buying a property
- How to find people who are open to selling a property at a discount
- What it means to exchange the equity for peace of mind
- Why you should be a problem-solver in order to get a deep discount
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Matt Theriault: Hey, I’m Matt Theriault, Epic Real Estate, and today I want to show you how to find off-market deals at a deep discount on today’s episode of Financial Freedom Friday. All right, so how to find off-market deals at a deep discount. Well, there’s a couple things embedded right there in that question. One is off-market. That means we’re not going to find them on the Multiple Listing Service. We’re not going to find them anywhere on the internet, that would be on market. We’re looking for off-market deals, so that’s the first part.
The second part is at a deep discount. I bring that part up, because typically when I’m talking to a group of people that don’t have a whole lot of awareness or familiarity with who I am and what we do over here, invariably there’s always one person that stands up or raises their hand and says, “Why would anyone sell their property at a discount if they could just call a realtor?”
That’s a great question. One thing that you need to understand is … It has to do with a couple of things. Most people will not sell you their property at a discount, they will call a realtor. So you’re thinking in the right way, you’re right. Most people will not, but we’re not looking for most people, we’re looking for the people that will. Here, let me show you this. Okay, so if this represented all real estate transactions, okay, so there’s everything … all real estate sold. Say this is 95% here, and this is 5% here.
So of the 95% up here, 95%, they want to sell. So they want to sell their property, but they’re not going to sell it to you at a discount. The 5% down here, they need to sell. They got something going on in their lives. See, when you ask that question, there’s kind of two things going on. One is you’re making this assumption that “This isn’t going to work, so why even try? I don’t understand, I don’t want to do it.”
The second part you’re thinking is, “Everybody out there is in the same boat as you,” which is just not the case. See, you by asking that question are asking that from a place where a piece of real estate or even your house is of … that could be your biggest asset. That’s got an amazing value to you, and you would never sell it at a discount, but there are people in this world, this 5% down here at any given time, have something else going on in their life that has a bigger value than real estate, for example, they just got laid off their job, they need some money fast.
They just found out they were sick, or someone in their family was sick. They need some money fast. Or they may have another project coming along, they don’t have the cash to close that project, so they need some money fast. There are all different reasons why people would be more attracted to going for this fast nickel down here, other than waiting for the slow dime. All right, so that’s the one part, you’re not most people.
The second part of that is that you want to make sure, don’t make this assumption, and what you kind of do is you end up negotiating on the seller’s behalf. If you do that, you’re never going to buy properties at a discount, whether they’re on market or off the market, all right? So you just need to understand that. Most people will not sell it to your discount. This portion will, and this is the portion you’re looking for.
So how to find them. Well, I’ll take you through a short little exercise of the kind of a … hold on, let me get this done … kind of a stripped down version of something that we do at the Epic Intensive when we go and we build a lead machine. A whole group of us get together, and everybody walks out with their own lead machine.
As I said, it’s a stripped down version. If you like though, our next event’s coming up soon. You can go to epicintensive.com, epicintensive.com. You get all the details there if you’d like to join us, but let me just kind of show you what it looks like.
We start out with listing the different problems a property owner might have that may cause them to sell a property at a discount. If they don’t have a problem, they’re not going to sell at a discount, so we have to look for the problems. We have to look for all the different problems that are out there.
Problems could be death, divorce, let me think, I don’t know, bankruptcy. It could be they got the property’s in distress, right? Maybe they got bad tenants. There could be all kinds of things. When we go through this at the Epic Intensive, we come up with pages, and pages, and pages of this, but these are just some examples of problems that a seller might want to sell their property quickly to alleviate this problem, okay? So that’s the first part.
The second part is if you want to find them, there are two ways you can do that. You go out and look for them, or you can wait for them to find you, but the only way that’s going to work, you’re going to be able to make that match, is that you actually have a solution for them. Another reason people find it difficult to find properties at a discount is they don’t realize the value that they bring to the table as a real estate investor.
As a real estate investor, we can do a transaction fast, right? We can make it easy. We can make it at no cost, right? We can preserve the seller’s dignity. They might be embarrassed that they might have to sell their house fast. We could give them certainty. There’s a bunch of different … certainty meaning we’re going to get this solved, right? There’s a bunch of different solutions, there’s a bunch of different problems.
At the Epic Intensive, we come up with pages, and pages, and pages of these. This gives you an insight. What you’re looking for is … really what we do, is we just exchange equity for peace of mind. If you keep that concept in front of mind, then buying property at a discount’s going to be a whole lot easier. So here are the people that don’t have peace of mind. They’re looking for the solutions that you have to give them peace of mind, and if you provide that, what they’re going to do is they’re going to give you equity in exchange.
So there are two ways that we can do this, right? We go out and look for them, so we call this our vehicle. How are we going to deliver our message? We can call them, we can go ahead and just pick up the phone and start calling. We can knock on the doors, so those are different ways that we can go look for them, or we can do something I prefer to do, is to attract them to us. Have them to come to find us, right?
So one thing I like to do is go ahead and take our solutions, put them on some sort of delivery vehicle, put it in front of the people that potentially have these problems, and just kind of wait for them to call us. It’s a much easier call to have when they’re like, “Hey, I think you could help me out. Can you come over and take a look at my property and make this problem go away?”
So we can do that on the internet with pay-per-click advertising, we can do it on social media with Facebook, and other … Instagram. We can do it with Direct Mail, right? What else? We got bandit signs, we got billboards, we got TV, we got radio, we got car signs, we got all different types of vehicles where we can promote our solutions so that the people with the problems will see these solutions, and, “Hey, I want to work with you.” So they’ll give you a call, they’ll send you an email, however that may be.
Excuse me. So there we got how to find off-market deals. That’s how you find them. They’re not on the market, so you have to go ahead and look for different ways to access the people’s problems, promote your solution, and use it as a vehicle so you can have an automated and scale that message out to people. All right, so keep all that and mind, and finding off-market deals at a deep discount is not that big of a challenge.
When I say, “at a deep discount,” let’s go back in this, and I’ll just end up with this. If there’s no problem, there is no discount. The bigger the problem, the bigger the discount. The bigger your solution, the bigger the discount. So just understand that the foundation of every deal, it lies within the motivation of the seller. If the seller isn’t motivated, if they’re not motivated by that problem, there will be no discount.
If you want to get deeper, then all it is is really practicing what we call your people skills, right? And your negotiating skills, because right up here, it doesn’t matter how good you are, and what skills you have, you’re not going to buy these at a discount. Down here, you don’t have to be very talented or skilled if the motivation is big enough. If you can make that happen for them, then you don’t need a whole lot of skill down here to buy this at a discount.
But if you go through and you practice your negotiation, you practice your people skills, you build rapport, the more experience and the repetitions you get in this whole process, you get to start playing in here, and you get to start expanding your circle, so you get to buy a little bit more of these if you can potentially get those at a discount. Then these ones that are really easy for you to get for you right now, the better you get at it, the deeper those discounts get. All right?
So the bigger the motivation, the deeper the discount. The bigger your solution that you can convey to the seller, the bigger the discount. So that’s how you find off-market deals at a discount. I’m Matt Theriault, I’ll see you next week on another episode of Financial Freedom Friday.